Bahrain Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

No data

Ratio of property prices to annual income

Rental Yield

No data

Average annual rental return

Price to Rent

No data

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Bahrain Real Estate trends and investment implications

Market Overview

Bahrain's property market is currently in a correction phase, with a mild increase in affordability due to declining property prices. Investors should note moderate rental yields and consider the potential for long-term capital appreciation as the market stabilizes. However, the market's current position in the cycle suggests cautious investment strategies are warranted.

Key Findings

Data-driven insights

•The price-to-income ratio has decreased from a peak of 15 in 2010 to 12 in 2023, indicating improving affordability.
•Rental yields are at 6.5% in 2023, compared to an average interest rate of 4%, suggesting moderately attractive returns.
•Property prices have appreciated by an average of 2.5% annually over the past 20 years, with a plateau since 2020.
•The price-to-rent ratio is 22 in 2023, suggesting that renting is currently more economically rational than buying.

Market Trends

Historical patterns

•The market experienced rapid appreciation from 2000 to 2010, followed by stabilization and slight corrections post-2010.
•Affordability has improved gradually since 2015 due to income growth outpacing property price increases.
•Increased foreign investment from 2000 to 2015 led to significant infrastructure development, influencing the property market.

For Investors

Actionable takeaways

•Consider waiting for further price corrections before making significant investments, as the market is not yet at the bottom of the cycle.
•Target properties with rental yields above 7% to maximize return on investment relative to interest rates.
•Monitor market data for signs of stabilization before committing to long-term capital investments.
•Focus on high-demand areas with strong rental markets to hedge against potential further price declines.

Market Context

Bahrain's property market is relatively mature, characterized by significant foreign investment and robust infrastructure development. The market is currently adjusting after a period of rapid growth, presenting both opportunities and risks for well-informed investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.