Luxury housing market in Bahrain set to top $6 billion by 2030

TDT | Manama

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Luxury housing in Bahrain is expected to reach $4.26 billion in market value by 2025, with forecasts rising to $6.12 billion by 2030.

The market is growing at an average annual rate of 7.5 per cent, driven by demand from wealthy buyers across the Gulf and a steady inflow of foreign capital.

Sales

Villas and houses continue to lead, accounting for more than 70 per cent of sales in 2024.

Flats and residential blocks are gaining ground and are projected to grow by nearly 8 per cent a year over the next five years.

Manama remains the most active region, holding close to a third of the market, although the Northern Governorate is expanding more quickly than any other area.

Transactions

Sales made up more than half of the market last year, with resale transactions accounting for over 60 per cent.

Demand for newly built homes is rising, with off-plan purchases growing at over 8 per cent annually.

The rental segment is also expanding, with activity expected to rise by almost 9 per cent each year through to 2030.

The rise in the number of wealthy individuals across the region is helping to push demand.

In 2024, the Middle East saw a 2.7 per cent increase in residents with considerable wealth, and nearly one in ten now holds assets exceeding $100 million.

Full ownership

Bahrain allows full foreign ownership of property, and a residency route is available for buyers who invest at least $530,000, which has made the market more accessible to international investors.

The movement of more than 6,700 millionaires into the UAE last year has shifted investment flows, with neighbouring countries now drawing fresh capital.

Many of these investors are seeking property that offers income and long-term value. In Bahrain Bay, some waterfront villas have already achieved presales above 80 per cent.

Large-scale developments along the coast, such as Bahrain Bay and Diyar Al Muharraq, are changing the face of the market.

Price

These areas include homes, shops and hotels, and are often priced 20 to 30 per cent higher than similar inland properties.

Buyers are attracted to the gated streets, walkable layouts and shared facilities that are rarely found in stand-alone homes.

Homes are increasingly being built to withstand flooding.

Raised floors and water-resistant designs are becoming more common and are proving popular among buyers who take environmental risks into account.

Transport improvements are also reshaping the market.

Travel times

The planned metro will cut travel times between the Northern Governorate and central Manama, while the King Hamad Causeway is expected to improve road access to Saudi Arabia.

These upgrades are helping developers market larger homes outside the capital at more attractive prices.

Buyers, particularly younger expatriates, are showing growing interest in neighbourhoods that favour walking over driving.

Demand

As a result, demand is spreading across multiple areas rather than staying fixed in the city centre.

Cultural preferences still have a strong influence on the market. Villas are preferred by many families who value privacy, outdoor space and room for several generations.

Wealthier buyers tend to purchase early in construction and keep properties within the family.

Attention

Flats are drawing attention from a younger set of buyers, including expatriate professionals.

These buyers tend to favour smaller, fully furnished homes that are easier to maintain.

Although ownership remains the main approach, more investors are entering the rental market to balance their portfolios.

Manama held 31.55 per cent of the luxury housing market in 2024.

Interest

Seef, the Diplomatic Area and Bahrain Bay all continue to attract interest due to their shopping, dining and access to marinas.