Real Estate Scenario in Bahrain
The real estate market in Bahrain has seen a recent boom due to the change in legislation permitting the ownership of freehold property in some real estate developments. Before this, foreign individuals were not permitted to own any property in Bahrain. This change has created an avalanche of investors and consumers alike.
Like the rest of the Middle East, Bahrain has always had a strong expatriate element in its overall population. These expatriate who typically heralded from the US, UK, and Europe enjoyed a high standard of life along with a tax free income but they were never permitted to own property because of the local laws. The recent changes to the legislation permitted ownership of free hold Bahrain real estate have resulted in some serious investing by the expatriates residing there.
Bahrain real estate has also benefited from the fact that the government has worked hard to move the economy away from total dependence on oil and towards other business areas like financial services, tourism, information technology, education, and telecommunications. This has brought many international companies to Bahrain in order to open their offices there, which naturally attracted many working professionals to come to Bahrain with their families. So the demand for Bahrain real estate was always there and now it has suddenly been fulfilled resulting in a booming property market.
Real estate agents in Bahrain were always active even before the freehold ownership laws because of the high demand for rental property by the expatriates who had come to live and work in Bahrain. Since the basic infrastructure of Bahrain real estate agents was always there, the change in legislature created an overnight market explosion with many investors seizing upon the real estate opportunities that presented itself. Local government was also quick to realize the potential of Bahrain real estate and acted with admirable foresight to steer developments in a way that was most beneficial to the Bahrain economy.
The expatriates residing in Bahrain are not the only ones who are profiting from the real estate boom. The high demand for high quality accommodation has also resulted in good business time for the rental market with rates increasing every year. Since the market is new and not fully explored with plenty of developments still incomplete, there are plenty of opportunities remaining for anyone who wishes to own Bahrain real estate.
The resale value of all properties is expected to go up quite a bit for a considerable time to come.