The real estate market in the Kingdom of Bahrain is distinguished from other markets, whether Arab or Western, as one of the most stable markets. It also ensures reasonable income rates for the investors, attracting local and foreign investors to invest in the Kingdom’s real estate market.
Factors stabilizing the real estate market in Bahrain
Bahrain market has many factors that motivates investors to invest. The freehold law for foreigners was one of the most important factors, in addition to the attractiveness of property prices, financing conditions and the legal environment in the Kingdom.
Moreover, the presence of a US naval base in bolstered the existence of a large American and foreign community in the Kingdom. And also the large influx of expatriates in the Kingdom due to its economic openness and distinctive lifestyle.
Bahrain’s connection with Saudi Arabia through the King Fahad Causeway ensured the presence of significant numbers of Saudis, and also the growth of the Bahrain tourism sector, and high rates of population growth and ease of doing business in the Kingdom.
Attraction reasons of the Bahrain market
The selection of Bahrain as a regional headquarters by many companies, such as commercial banks, Islamic banks and financial institutions, increased the weight of Bahrain market and ensured the stability of real estate and investment in general.
Bahrain government focuses primarily on real estate sector by expanding its economic base and investing in major real estate projects aimed at attracting the regional and international categories. Bahrain is the financial hub of the region and is one of the best countries in terms of doing business and increasing commercial and residential real estate development. The real estate sector plays an important role in the Bahrain economy.
The real estate and construction sector has seen an increasing activity, which can be seen from the increased borrowing rates from banks. With the Central Bank of Bahrain raising the ceiling on mortgage finance at Bahrain banks, there was an opportunity to increase loans to the sector.
The provision of mortgage finance in the Kingdom has also helped to support the growth of the real estate sector, encouraging local and foreign investors to purchase residential units, commercial properties and land for sale.
In addition, it opened new investment doors in the Kingdom and encouraged investors to expand the real estate market, build new cities and industrial islands to provide a wide range of properties in price and location, leading to the development of the Bahrain property market and increasing demand.
Variety of real estate in the Bahrain’s market
The real estate market in Bahrain has witnessed a remarkable diversity of properties in the market, making their prices reasonable and suitable for a large segment of investors or even citizens in the Kingdom.
Juffair, Seef and Sanabis are the most concentrated areas of freehold housing. Juffair has the highest market share with 41%. The average price of a fully furnished apartment with two rooms in Juffair area is about BD 66,000, while the average rent is BD 650.
And the Seef area has an average purchase price of BD 90000 and a rent of about BD 900.
But in the Sanabis area, the average price of buying two rooms apartment is about BD 95,000 and the average rental price is BD 630. Displayed Hidd apartments for rent present also a great opportunity for searchers aiming at a calm, quiet, and family oriented location.
These prices are reasonable for the price of buying or renting real estate in any other real estate market.
However, other regions in the Kingdom have a large market share, including Amwaj Island, Adliya, Busaiteen, Hidd, and the Reef Islands.