Many people are intrigued by Manama’s modern architecture and dream of owning a contemporary apartment or a luxurious penthouse there.
Does it make sense from a financial perspective, though? Are property prices increasing in Manama? What is the current trend? Is it better to buy property in Juffair or Seef? And the taxes? Where are the best yields?
We’ve got it all sorted. No worries.
The SandsOfWealth team has extensively researched this market. As a matter of fact, we’ve gathered all our findings in a pack. Get it now.
In the lines below, we’ll provide you with helpful information.
How’s the property market in Manama?
Confused about the property market’s status? Everyone has their views. We prefer data and statistics over opinions for accurate assessments.
Types of properties
In Manama, you can find a variety of properties for sale to suit different preferences and needs.
These include apartments with varying numbers of bedrooms, ideal for individuals or small families looking for convenience and modern living; luxurious villas that offer spaciousness and upscale amenities, suitable for those seeking a more lavish lifestyle; commercial properties such as offices or retail spaces for business ventures; and potentially land or plots for those interested in constructing their own customized properties.
Whether you’re looking for a comfortable home, an investment opportunity, or a place to start a business, Manama offers a diverse range of properties to choose from.
What’s better: buy or rent?
If Manama is your city of choice, you may be pondering the buy vs. rent decision in this modern capital of Bahrain.
Obviously, it’s better to buy if you are looking for an investment that can build equity and provide long-term financial security.
To make a good decision, look at the property price-to-rent ratio. You can think of it as the time it takes for rental income to equal the property’s current purchase price.
According to Numbeo, the property price-to-rent ratio in Manama is around 9.31, which is one of the lowest in the world.
It means that, on average, you would only need 9 years of rental payments to actually purchase a property.
Property prices in Manama
On average, according to the last data from the Central Informatics Organization (CIO), buying a property in Manama will cost you around $1,840 per square meter.
There are big differences, obviously. A luxury apartment in Juffair may have a higher price per square meter than a house in Saar. We actually give you a more detailed breakdown in our pack for buying property in Manama and in Bahrain.
To give you a better idea, it is 10 times less than the prices in the center of New York.
Moreover, housing prices in Manama are WAY cheaper (-72%) than in Dubai.
The most expensive neighborhoods in Manama are probably Seef, Juffair, and Adliya, while the cheapest neighborhoods are likely Hoora and Zinj.
Trends
First and foremost, we have to acknowledge that Bahrain is, nowadays, a relatively stable country. The last Fragile State Index that has been reported for this place is 66.6.
It is something to have in mind when wondering whether it’s a good investment to buy a property in Manama.
Besides that, if we look at the IMF’s GDP forecasts, Bahrain’s economy is expected to soar by 14.2% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.
If you want to invest in real estate in Manama it’s a good thing because it means people are getting richer and then housing prices are likely to increase.
Also, in Bahrain, the average GDP per capita has changed by 6.0% over the last 5 years. It’s a good performance.
According to this data point, property prices in Manama might go higher in 2024 and also later on.
Looking for more updated data? We’ve done a big-picture study to find out if it’s a good idea to purchase property in Bahrain right now.
Buying property in Manama
It can be difficult to buy property in Manama due to the lack of reliable and updated information about the process. That’s why we have created a package to assist in buying property in Manama and throughout Bahrain
Buying process
Inside our pack, we’ve outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we’re presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Manama:
- Determine your budget and requirements for the property.
- Engage a licensed real estate agent in Manama.
- Shortlist properties based on your criteria.
- Visit and inspect the properties physically.
- Negotiate the price and terms with the seller, considering Bahraini customs and market practices.
- Sign a preliminary agreement (MoU) that outlines the property’s key details and conditions.
- Conduct due diligence, including verifying the property’s title deed and obtaining the Seller’s Waqf certificate.
- Draft and sign the sale and purchase agreement, reflecting the negotiated terms.
- Pay the agreed-upon deposit, usually 10% of the property price.
- Apply for a non-citizen ownership permit from the Ministry of Housing.
- Upon approval, pay the remaining balance and transfer property ownership at the Survey and Land Registration Bureau (SLRB).
- Register the property with the Real Estate Regulatory Authority (RERA) to complete the purchase legally.
If you’re not from the country, you might want to check out our article on how to buy property as a foreigner in Bahrain.
