Bahrain real estate market — prices, rental yield and trend

• Average price: $2,576 / m²
• Gross rental yield: 8.6%
• Net rental yield: 7.74%
• Transaction cost: 1.7%
• Price basis: national average

Residential property in Bahrain averages $2,576 per square metre. That makes it the 193rd most expensive of the 264 markets in the set.

What a buyer pays in Bahrain

The $2,576 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 1.7% of the price here. On a 100 m² apartment at the average price that is roughly $4,380 on top of the $257,645 purchase price. That is below the 9.6% median across the set, which shortens the time it takes for a purchase to break even. Of that, the transfer tax alone is 1.7–2% depending on the buyer and the property; the rest is notary, registration and agency fees. Inside Bahrain we also track Manama separately, where the average is $2,610 — 1.3% above the national figure.

What it earns

A square metre lets for about $18.5 a month. Against a purchase price of $2,576 per square metre that is 8.6% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 19th of 311 markets by gross yield. Rental income is taxed at 10%, which takes the yield down to 7.7% net. The 0.9-point difference between the gross and net figure is the part most listing sites leave out. On the way out there is a third tax: a non-resident seller pays 0% on the gain.

How the tax works. 10%: not an income tax. Bahrain has no personal income tax, but a 10% municipality tax is levied on the rental of residential and commercial property to expatriates and is payable by the property owner (PwC Worldwide Tax Summaries, Bahrain corporate - other taxes, reviewed 26 July 2026). As a municipal levy it is generally not creditable as income tax at home. No capital gains tax on property sales. Source: PwC Bahrain.

How this figure is built

The price figure for Bahrain is built from asking prices from listings. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data low — treat the figures as indicative and check them before acting. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: Numbeo Bahrain · numbeo.com · taxsummaries.pwc.com · sandsofwealth.com · propertyfinder.bh. Snapshot: 2026-10-17.