With prices lower than the other Gulf states, for expats, renting and buying in Bahrain is an attractive option.
Expats often arrive in Bahrain planning to stay only a year or two, and a decade later find themselves still there, due to the easy lifestyle, and its affordability relative to other Gulf countries. In Bahrain you can rent a 4-bedroom villa for under 20,000 BHD, compared to a similar area in Dubai which would cost over 300,000 AED.
Renting in Bahrain for expats
A residence permit, from the Kingdom of Bahrain Ministry of Interior, and a national ID is required before finding a reputable realtor. Looking at the budget, and what is available, choose between unfurnished, semi-furnished (white goods usually included) or fully furnished. ‘Inclusive’ means utility bills are included but often have a cap whereas ‘exclusive' means the renter will pay the utility bills on top of the rent. “We expect to see more inclusive rental with an electricity cap,” says Tom Carter, Clutton's Associate Director and Head of Agency “with residential apartments BD20 per month or BD240 per year as a maximum cap seem to be the trend.”
Monsi Rabah, Regional Manager for Qatar and Bahrain's propertyfinder.bh, advises to carefully consider the tenancy agreement. “There are no hidden costs - it’s all in the contract if read carefully,” he adds. "While two or three months of rent in advance is common, be sure to clarify exactly how much you will need to pay, including costs involved for commission.” Also, check for a Diplomatic Cause, which protects expatriates who unexpectedly need to leave the country and opt out of the lease agreement.
Cost of rent in Bahrain per month, according to Numbeo,
Buying in Bahrain for expats
“The law to protect buyers requires all developers to liaise directly with the relevant authorities before the sales launch of developments, ensuring complete investments, escrow accounts and firm plans for project completion,” Carter says. There were previous cases when investors bought off-plan before developments were finished and then had long waits until any progress was made, let alone until they could move in.
Expatriates and locals can buy property in Bahrain’s freehold areas, although non-nationals are limited to certain areas including residential developments such as Amwaj Islands, Durrat Al Bahrain and Reef Island in Seef, as well as in Juffair.
Carter also recommends considering the importance of location when choosing a house that will become a home. “If you like staying in your home over the weekend or walking and jogging, Amwaj is a great place,” says Carter. “One-bedroom apartments are always in demand and give generally solid returns.”
“If you like the hustle and bustle of a city then Juffair will suit you. But if you want to be in a compound or close to the Rugby Club then Janabiya/Saar will work for you. The bottom line is that with as much supply as there is in the market, there are deals to be had in every area. Juffair is always a solid investment with yields of seven percent and above being quite easy to find,” he says. Home to many towering apartment blocks, hotels and nightlife spots, as well as the United States Navy base, Juffair is already a popular place for expats and is the only area to see an increase in rents.
Cost of buying in Bahrain, according to Numbeo,
For more detailed market information and available properties phone or email Tom Carter from Cluttons Bahrain via the contact details below
See also:
Cluttons' Report Unveils Bahrain's Investment Possibilities