Bahrain’s property market has soared in the past few years. Easing of residence and ownership restrictions has made property in Bahrain more attractive.
The retail sector in Bahrain witnessed strong growth over the past 10 years. The main driver behind this growth is the strong population growth and the increase in income, in addition to increased demand from the GCC countries.
Buying a Property
In terms of the property buying process in Bahrain it proceeds in a similar way to the majority of buying processes worldwide.
Investors are advised to seek independent legal assistance throughout the entire purchase process of course and the legal property ownership rights in Bahrain are sophisticated and well developed, meaning the purchaser is protected once permission to purchase has been granted and deeds of ownership transferred into the investor’s name.
Essentially it has been possible for foreign investors to purchase real estate in Bahrain since 2001 when a royal declaration (PDF, 1.0MB, 9 pages, Arabic Language Only) was issued to that effect. The declaration was fully endorsed and sanctioned in 2003 and it states that foreign buyers are permitted to buy certain types of property in certain areas of Bahrain.
Foreigners are allowed to own land in the following Areas:
- Seef Area
- North Sanabis
Where Building zones are for 10 storey buildings in the following locations:
- Ahmed Al Fateh District
- Hoora District
- Bugazal District
North Manama District including Diplomatic Area
- Amwaj Islands
- Durrat Bahrain
- Bandar Al Seef
- Riffa Views
- Bahrain Financial Harbour
- Reef Island
- Danat Hawar
- Al Areen
Renting accommodation in Bahrain is a straightforward, well-established practice. Major international and local real estate agencies are available. There’s a wide range of apartments and villas available in Bahrain, both within and outside enclosed compounds.
Rental costs vary enormously for villas of different sizes, depending on property facilities, and location.
The Ministry of Justice, Islamic Affairs and Awqaf allow the leaser or tenant to register for both housing and a commercial lease contracts that includes single party or multiple parties for single or multiple properties.
The law provisions applies on properties and their components that are intended for housing or industrial purposes, commercial, professional, crafting, or any other purposes. They also can apply on the existing lease contracts, with the exception of the below properties:
Land and industrial facilities that are subject to Law Decree No. (28) For the year 1999 on the establishment and organization of
- industrial zones.
- Agricultural lands.
- Property leased for hotels and tourism purposes.
- Furnished apartments that do not exceed the period of the leased month.
- Residential units that are utilized for working conditions.
- Land leased for the purpose of development.