Property Market in Bahrain
Since becoming an independent State in 1971, Bahrain has witnessed spectacular economic growth and has transformed from an essentially agricultural base, where the main products were pearls and dates, to a modern industrial, business and service center and is today acknowledged as being the banking hub of the region. Over the past years the Government has been the engine of the economy, using oil revenues diligently in order to provide a modern physical and legal infrastructure without having to resort to traditional forms of taxation. The result is a vibrant economy, a population which is well educated and adaptable, and a private sector ready to reach out to the global market.
Bahrain aims to increase diversification of its economy by investing in large Real Estate Projects aimed to attract regional and international investors to Bahrain. Located in a strategic geographic location between two of the largest economies in the GCC, Saudi Arabia and Qatar, the demand for property on the island will be driven by the large numbers of people transiting over the existing King Fahd Causeway and the upcoming Qatar Bahrain Friendship Bridge.
Property market in Bahrain is going with strong conservative industry expectations predicting strong property price growth in the residential market. Driving the success of Bahrain Property Market is a series of strong and sustainable factors, and now, realizing the potential of property and in a bid to shore up and diversify their own asset and Investment Portfolios. There is nothing to suggest this situation is going to change and therefore there is nothing to suggest that demand for property is going to abate.
The major revamp in Real Estate Market took place when the declaration was fully endorsed and sanctioned in 2003 states that foreign buyers are permitted to buy certain types of property in certain areas of Bahrain. According to the original terms of the Royal Decree, a foreigner or an entity wishes to purchase Freehold Property in Bahrain – whether for Investment, Commercial or Residential purposes – was permitted to buy Residential or Commercial Property in five specifically designated areas of the capital city of Manama.
Investors are advised to seek independent legal assistance throughout the entire purchase process. Purchaser is protected once the permission to purchase has been granted and deeds of ownership transferred into the investor’s name.
The amount of investment Property available for sale in Bahrain to overseas investors is physically restricted by the small land mass of the Kingdom and by the fact that Freehold Ownership is only allowed in certain areas of the country; therefore it is this restriction of supply that will ultimately push up prices because the demand for Real Estate for sale to international investors and expatriates living in Bahrain is not abating.