Bahrain Real Estate 2025: Foreign Ownership, Investment Zones, Residency & Legal Insights
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8.7.2025

✅ Can Foreigners Buy Property in Bahrain?
Yes — but only in designated freehold zones. Bahrain permits 100% foreign ownership of real estate in certain areas, with options to gain residency through property investment.
🏠 Foreigners can buy residential, commercial, and investment properties in approved zones.
🗺️ Freehold Zones for Foreign Buyers (2025)
🔹 1. Juffair
Trendy expat district in Manama. Known for apartments, nightlife, and easy rental appeal.
🔹 2. Amwaj Islands
Luxury waterfront living, private beaches, and high-end villas and apartments. Very popular among GCC and European buyers.
🔹 3. Seef District
Business, shopping, and finance hub. High-rise condos, malls, and excellent long-term rental potential.
🔹 4. Reef Island
Exclusive residential enclave close to downtown. Gated community, modern villas, strong capital appreciation.
🔹 5. Diyar Al Muharraq
Mixed-use mega project with residential, retail, and marina developments. Modern and family-friendly.
🔹 6. Bahrain Bay & Dilmunia
Smart city projects with a focus on innovation, wellness, and high-end urban living.
💼 Foreign Ownership Laws in Bahrain
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✅ 100% ownership of freehold properties in designated zones
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❌ Cannot own land or property outside these areas unless via Bahraini partner/company
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✅ Properties can be held in personal name or via a Bahraini-registered company
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✅ Eligible for Property Owner Residency Permit (see below)
📌 No minimum purchase value unless applying for residency
💰 Property Prices in 2025 (Average)
Location | Avg. Price (BHD/sqm) | Approx. €/sqm |
---|---|---|
Juffair | 800–1,200 | €2,000–€3,000 |
Amwaj Islands | 1,100–1,600 | €2,800–€4,200 |
Seef District | 1,200–1,800 | €3,100–€4,700 |
Reef Island | 1,500–2,500 | €3,800–€6,300 |
Diyar Al Muharraq | 900–1,400 | €2,300–€3,600 |
📈 Rental Yields & ROI
Area | Long-Term Yield | Short-Term ROI |
---|---|---|
Juffair | 6–8% | 9–11% |
Seef District | 5.5–7% | 8–10% |
Amwaj Islands | 5–6.5% | 7–9% |
Reef Island | 4.5–6% | 6–8% |
Diyar Al Muharraq | 5–7% | 7–10% |
Airbnb-style rentals are legal but must be registered with the Tourism Authority.
🧾 Property Taxes & Fees
Type | Rate or Cost |
---|---|
Registration Fee | 2% of purchase price |
Notary/Legal Fees | ~0.5–1% |
Capital Gains Tax | None |
Annual Property Tax | None |
Rental Income Tax | None (for individuals) |
VAT | 5% (applies only to new commercial or off-plan sales) |
Bahrain is one of the most tax-friendly countries in the region for property investors.
🛠️ Buying Process for Foreigners
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Select property in a designated freehold zone
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Sign Sales Agreement with deposit (~10%)
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Conduct due diligence and secure financing if needed
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Transfer title through Survey & Land Registration Bureau
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Pay registration fees and receive ownership certificate
No need for residency or a local sponsor to buy.
🛂 Residency Through Property Ownership
✅ Yes — Property Owner Residency Permit
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Requires property purchase of minimum BHD 50,000 (~€125,000)
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Grants renewable 2-year residency visa
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Can be extended to include spouse and children
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No obligation to live in Bahrain full-time
📌 Residency does not lead to citizenship, but allows long-term stay and local banking access.
🏘️ Who Should Invest in Bahrain?
✅ Ideal for:
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GCC residents and investors seeking rental income or second homes
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Europeans and expats wanting low-tax property holding
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Buyers looking for residency with minimal entry costs
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Investors interested in off-plan luxury developments
❌ Not ideal for:
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Investors looking for citizenship-by-investment
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Buyers wanting land ownership outside free zones
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High-frequency flippers—market favors medium-term hold
🔮 Real Estate Trends for 2025
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Expansion of freehold zones to include more lifestyle communities
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Smart city projects like Bahrain Bay gaining attention
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Growth in mid-range apartments for GCC families
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Healthcare and wellness real estate emerging as new sector
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Stable prices and high yield compared to UAE or Qatar
🧭 Final Thoughts
Bahrain’s 2025 real estate market combines legal clarity, full ownership rights in key zones, and tax-free rental income, making it one of the most accessible and investor-friendly Gulf states.
With residency options starting from just €125,000 and strong demand for rentals in expat zones, Bahrain suits investors who value stable income, legal protection, and lifestyle access in the Middle East—without the ultra-high entry costs of Dubai or Abu Dhabi.
A small market, but a smart one for strategic Gulf-based real estate investment.
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