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Bahrain boasts unrivalled real estate investment opportunities

18 October, 2017

The Kingdom of Bahrain is taking leaps towards total economic transformations to reduce its dependency on oil revenues and boost other economic sectors.

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Giving a lot of emphasis on building and development activity, Bahrain’s real estate market made many successes in the last couple of years to be one of the top income generating sectors in local economy.


Bahrain Government opened the door for foreign real estate investors to own properties around the kingdom. In 2000, a decree was issued defining certain locations as freehold areas including Juffair, Seef, Amwaj Island, Reef Island, and Durrat Al Bahrain. As a result, frenetic building and construction activity took place in these locations offering top standard real estate options for investors. The establishment of high-rise apartment towers, new residential compounds, and new entertainment venues around the kingdom’s soothing shores, they are all results of the progressive strategic applied in the real estate sector.


High prospects of further development

A wide range of real estate projects varying between residential, commercial, and recreational are under development and still there are more in the pipeline. The Kingdom witnessed a significant leap in total real estate transactions value during the last five years which exceeded one billion dinars for the first time in 2013 and peaked in 2014 with BHD 1.3 billion.


Currently, there is a large mixed use community by the sea under construction in Manama. Under the name of “Bahrain Marina” the project will include mid rise apartment buildings overlooking the sea along with clusters of villas and several entertainment destination.


The first branch of the world famous IKEA store is currently under development also in Tubli, only 10 kilometers south Manama. Sprawling on a total area of 37,000 square meters, the new branch will be the largest in GCC. According to the present timeline, the new IKEA will open in 2018 and it’s expected to receive around 1.3 million visitors a year.


Moreover, Bahrain’s Ministry of Housing made progress by handing over a lot of residential units as a part of King Hamad’s announced scheme of constructing 40,000 housing units. Backed by the Gulf Development Fund which is entitled to provide $10 billion over 10 years, Bahrain’s infrastructure is bound to see yet more improvement over the coming couple of years which will boost investors’ confidence and is expected to spur the local real estate market.


Available real estate investment opportunities in Bahrain

The kingdom displays a large array of lucrative real estate investment opportunities suitable for all requirements and demands. Juffair district is one of the most popular area for investors; it’s a central district that abounds with many entertainment destinations in addition to malls, restaurants, cafes, cinemas, and retail centers. It features high rental revenue since the displayed apartments for rent in Juffair are the most demanded by foreign expats looking for a vibrant and central district.


Other locations around the kingdom like Seef, Amwaj Island, and Durrat Al Bahrain offer high rental revenue that vary between 10% to 12% a year. Moreover, the property value appreciation rate in Bahrain is one of the highest in the region, it ranges between 12% to 15% per year.


Many special advantages of Bahrain make it a top real estate investment destination outperforming other destinations in GCC region. These advantages include scarcity of lands, central location, proximity to the Kingdom of Saudi Arabia, and the ambitious economic reformation strategy undertaken by the government. Hence, it’s definitely worth considering for buyers willing to get engaged in GCC real estate business.

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