Bahrain Investment Property Buying Guide

Essentially it has been possible for foreign investors to purchase real estate in Bahrain since 2001 when a royal declaration 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.

Local interpretation of the rules relating to foreign freehold ownership of property in Bahrain nowadays see overseas investors purchasing any type of residential property on any reclaimed land development in the Kingdom.

According to the original terms of the royal declaration however, a foreigner wishing to purchase freehold property in Bahrain - whether for investment or residential purposes - was permitted to buy residential or commercial property in five specifically designated areas of the capital city of Manama.  The five areas include Ahmed Al Fateh, Hoora, Bu Ghazal, and parts of northern Manama such as the Diplomatic Area.  Since the declaration was ratified in 2003 the Seef district has become the most popular with foreign buyers and it has enjoyed property price gains in the region of an incredible 400%.

Because of the popularity and success of certain property developments in these designated areas of the kingdom of Bahrain the government has subsequently issued an increasing number of licenses to companies for land reclamation and it is on this reclaimed land that the newest and most popular property developments are being constructed.  Foreign investors wishing to get in on the booming Bahraini property market are buying into these developments.

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.

Those purchasing pre-construction are advised that a holding deposit will be required upon contract closure and that stage payments will be due throughout the build process at fixed construction junctures with a final amount retained by the purchaser until property handover has been completed.

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 if 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.

Middle East:- Bahrain Property Reports
Complete listing of all current property reports for region: Middle East:- Bahrain