Buying property in Bahrain

Hi Christine,

I have found out the below article and might have some useful information for you:

http://www.globalpropertyguide.com/Midd … ying-Guide

The above article mention also that :

"It is advisable to hire the services of a lawyer during the whole process of buying."

Good Luck and Best Regards

Hi VidoDido!

Thanks for helping!

Armand

Of course you as a N Foreigner can Buy property in Bahrain.
You can Buy properties in designated areas called as Free Hold properties  - Like Juffair around the US Navy Base.
Amwaj Island, Seef etc

i dont suggest you  to hire a Lawyer  for this  as it is simple

Call some property agents  and they will show property  suitable to your Budget.
Usually the Agents does most of the procedures


Regards
Rajesh

I'm interested in buying a property in Bahrain and want to know what are the odds. Is it safe and profitable under the current situation of bahrain to purchase a property there?
Also what is the best place to buy in bahrain.

Pls reply
Umber

Areas like Juffair, Adliya and Seef will always be on demand due to their highly expat population. However, I am not sure about their long term profitability. Despite the fact that the riots are not as widespread as they were couple of years back, the overall global economy has still got some issues and any potential war between Iran and US will surely have an impact on the region's economics.

Depends on when and where you buy, Umber.

If you are going to buy off-plan, my advise is simple, stay away from unknown developers. Only go with those who have a track record of delivering property to buyers. Off-plan purchases generally give better returns, but the buyer has to carry the risk of developers not finishing the project and therefore losing your investment.

You can avoid that risk if you purchase "already built" property. The down side to this is the purchase price - will be a lot higher and therefore lower posssibility of making a capital gain.

Foreigners can buy property in Juffair and in Amwaj Islands, Riffa Views and Durrat al Bahrain, from what I know.

The procedure is indeed straightforward. If the buyer wishes to engage a lawyer for additional protection, they could do so, especially to read and check the "Red Book" (this is how the title deed is popularly known here).

The sale and pruchase is usually evidenced by a "Sale and Purchase Agreement" between the transacting parties. The sale and purchase agreement has to be notarized at the Notary Public in the GOSI building. Next step is registration of property at the "Survey and Land Registration Bureau".

While this may appear cumbersome, in reality each stage is fairly straightforward taking about 1 hour each, but costing a lot of money.

If anyone needs details please PM me. I went through the entire process successfully when I purchased my property here in Bahrain.

Best wishes!

buying property in Bahrain is not very hard , I bought myself a flat in Juffair 3 years ago. the only thing to put in your mind is that . The property should has a "title Deed Ready" and , there are no hold maintenance expanses on the property.

if you looking for investment : renting the flat you need a help of agency to collect the rent and look after the flat.

you can make very good profit in monthly basis if you rent your flat after fully furnish it . this what i did with my flat.

The other advantage of buying a property in Bahrain is that you are entitled to a permanent residency if you buy a property in Bahrain.

That is indeed true. Thanks for pointing it out, brightonguy.

The residence permit is a self-sponsorship programme for those who own property in Bahrain and wish to continue to live here after they retire/stop working.

It currently takes the form of a 2-year renewable residence permit. This is not a work permit and hence the property owner is not permitted to work with this residence permit.

Relevant rules on this page:
http://www.npra.gov.bh/mcms-store/controls/form2.aspx

My son will be studying at the Royal college of Surgeons which is the Medical school in Busaiteen, adjacent to the Hamad hospital.  He will be there for 5 years.
I am contemplating whether I should purchase or rent an apartment.  while reviewing the rental prices and baseing it  over a five year period at 400BD/month, I could almost pay for a one  bedroom apartment.
I am concerned that it may be difficult to sell after his study period has ended. What are typical costs to maintain a property in Bahrain, including hydro, water, etc.,

Hi Joe from Canada

Not sure if your math works out - at BD400per month you will spend BD24,000 over a 5 years time frame. A one bedroom apartment is about 3 times that amount.

And you are correct - I have observed that apartment values do not really hold in Bahrain. So you may not be able to sell it profitably once your son's studies are done.

Average monthly spend on utilities and rates will be about BD20 for a one bedroom apartment. Its high in summer and low in winter, but averages out.

Thanks for the reply, I have seen one b/r apartments next to the school listed at 29,000 BD to 40,000 BD.
Since the time of posting, I have had the opportunity to go out and view them.  although they are only 2 years old they are in very poor condition.  not to mention the infrastructure is horrible...I have decided to rent.
thank you for the input.
since you are up to date here in Bahrain.  I would like to purchase an inexpensive car for my son as he will be here for 5 years.  Because he is 19, the Insurance company AXA, has told me they will only provide 3rd party insurance.  do you know of any other insurance companies that will insure young drivers fully?
thank you

Of course, I do remember - there are apartments in and around the RCSI in Busaiteen for that price range. But most of those buildings are indeed of poor quality and badly maintained. The only reason people bought apartments there was to rent out to staff of King Hamad University Hospital and to students at RCSI. Most of those owners do not have long term interest in those properties.

Any apartments worth buying are in Juffair, Seef or Amwaj and that would mean your son will have a longer drive to classes each day.

You are probably better off renting.

I think the 3rd party insurance rule for drivers below 18 is across the board on Bahrain. I called a friend of mine int he insurance sector who also confirmed this. So you may be stuck with 3rd party insurance.

The way out is to register the car in your name and have it fully insured. The only issue then will be a higher deductible if the driver is below 21. Try this option with your insurers. May work!

farhaz,
thank you for the immediate reply.
how do I purchase under my name if I do not have a visa or smart card?
I will not be staying here, my son will be on his own.  Is it still possible?  I prefer a higher deductible opposed to third party alone

Oh I did not realize that you do not live here. I dont think you can register a vehicle here if you dont live here. I understand why you prefer full insurance.

Maybe another solution for you is to get a vehicle on lease/rent.

Hi All.

Looking to possibly move to BAH in the near future, I see the process to buy a property is fairly easy according to some replies on this forum, provided you have +/-25% deposit.

1) Is property value increasing in BAH, ie is the market strong for a (say) minimum 5 year stay? Would the asset, in my case a fairly new villa, good location, hold its value, increase a little or possibly drop? (assuming stability & peace in BAH/Middle East)
2) I have visited some web sites and see around +180-210K for a floating city villa does "one make an offer" below the advertised price and hope for acceptance.?
3) Any Japanese community in BAH?
4) Can someone suggest a good estate agent in BAH

Thanks in advance for any replies.
Regards

BBoy

BoeingBoy wrote:

Hi All.

Looking to possibly move to BAH in the near future, I see the process to buy a property is fairly easy according to some replies on this forum, provided you have +/-25% deposit.

1) Is property value increasing in BAH, ie is the market strong for a (say) minimum 5 year stay? Would the asset, in my case a fairly new villa, good location, hold its value, increase a little or possibly drop? (assuming stability & peace in BAH/Middle East)
2) I have visited some web sites and see around +180-210K for a floating city villa does "one make an offer" below the advertised price and hope for acceptance.?
3) Any Japanese community in BAH?
4) Can someone suggest a good estate agent in BAH

Thanks in advance for any replies.
Regards

BBoy

Hi BBoy.

Responses to your questions are below:

1) Apartment values hold in good and well maintained buildings. Most of the rest lose value over time. If your time frame is 5 years, consider the amount of money you would spend on rented property and then, if the expected drop in value is less than what you would spend on rented property you could go for the buying option.

2) Floating city villa - I assume this is in Amwaj Islands. This may be a better option than an apartment but ensure the villa is in good condition and you don't have to spend too much on repairs and upkeep.

3) I am sure there is a Japanese community here. You could contact the Japanese embassy once you are here for information.

4) not sure this is permitted in this forum. Maybe we can PM the contact information to you. You can also visit www.bahrainpropertyworld.com and contact any of the agents advertising there.

Best wishes.

Christine wrote:

Hi,

can a foreigner buy property in Bahrain?

If so, is it complicated? What is the process of purchasing a property in Bahrain?

Any tips for buying property, such as a check-list of items to verify ?

Thanks in advance for participating!

Christine

I would like to buy a flat or semi-detached home (doubt the budget is enough for a 'floating villa') in Bahrain from 200 000 to 300 000 USD. Can you tell me what area would be best to invest, live in and sell say 5 years later and get some good return on the investment

Hello

It's not complicated, everything is easy

Any question pls pm me***

I was looking at the same price range and found may luxury flats in new developments.  Floating villas start at 600 000 USD but few are ever for sale. 5 years is not enough time for a good return.

I purchased a flat for 55 k bhd and I've rented it for 450 bd per month and im making a lot of income investment for 5 years, then I can sell it same or higher price.

good deals with small and cheap properties is better than to buy a villa 'coz the villa is expensive and the rent value is not gonna reach 10% income, and when you sale it it even doesn't get the value of selling it, so I don't advice villa's investments, go for flats and freeholds flats, there you'll get a very good income with an 100% benefits.
***

Bahrain's ever growing financial problem means that it has to heavily rely on investments from abroad (mostly Saudi). It is also the expatriates working in the eastern region of Saudi that bring revenue to the country in rentals and other form. With the oil prices stalemate around 40's it is likely that the three giants in eastern region (Saudi Aramco, Sabic, Sadara) may cut down both their Operational and Capital expenditures. Whether I like it or not I see a lot of expatriates just as myself losing their jobs in a not so distant future. With the expatriates leaving from the region I see a lesser demand for properties in Bahrain. I am definitely clear about the impact on rentals. The impact on trading will have to be seen.

Only two cents in on the topic.