Residential vs. Commercial: Pros and Cons of Investing in Different Property Types in Bahrain
If you are looking to invest in real estate in Bahrain, you might be wondering if it’s beneficial to invest in residential or commercial property in Bahrain. While investments in both types of properties have their pros and cons, it is advisable to invest in property that gives you the best returns with minimum costs. Also, it is advisable to consult the best real estate company in Bahrain like Iris Property Management WLL for the best deals in commercial residential property in the Kingdom.
Let’s understand the benefits and disadvantages of investing in commercial residential property in Bahrain so that you can make a more profound Bahrain real estate investment.
Commercial property in Bahrain
Commercial property is that property that is used for commercial or business purposes. The main difference between commercial and residential property in Bahrain lies in the details of what the property is used for. Even the income generated from the property and how the property is taxed by the laws of the land influences the demarcation between the two types of properties.
Advantages of investing in commercial property in Bahrain
Higher returns on investment
One of the advantages of investing in commercial property is the fact that commercial property yields better returns on investment. The rate of income from rents from commercial property is usually higher than the rents from residential property.
However, many factors influence the rate of rent for commercial and residential properties in Bahrain like location, area of property, etc.
Longer lease terms
Usually, businesses rent commercial property for a long period, unlike individuals or families who rent residential properties for shorter periods. Longer lease terms ensure owners of a longer rental period. Thereby owners can avoid the hassles of looking for tenants now and then.
Steady flow of income
Again, business establishments like banks, multinational companies, and retail outlets rent commercial property. It becomes easier to recover rent from such entities as the rental income comes promptly every month without delays. That is why it is advisable to invest in commercial property in Bahrain.
Disadvantage of investing in commercial property
High investment
Commercial properties are costlier than residential properties. Therefore, investing in commercial property in Bahrain may prove to be more expensive than investing in residential property.
Difficulty in finding appropriate tenants
One of the disadvantages of investing in commercial property is that finding the best business tenant is comparatively difficult. Before renting space, businesses have to ensure that all the requirements of the business are met in the specific property. Therefore, it becomes difficult to satisfy all the needs of the tenant.
Residential property in Bahrain
Residential property, as the name suggests is the real estate property exclusively for living purposes.
Advantages of investing in residential property in Bahrain
Tax benefits
There are several tax benefits of investing in residential property in Bahrain. To encourage real estate investments, the Government offers several rebates for investments in residential property in Bahrain.
No restriction on ownership
Another advantage of investing in residential property in Bahrain is that there are no restrictions on the ownership of the property. In other words, even non-nationals can invest in real estate in Bahrain, making it a very lucrative option for people looking to invest in Bahrain.
Golden Visa
Non-Bahraini nationals owning property in Bahrain have the option of being part of the Bahrain Golden Residency Visa Program. This visa allows a 10-year long-term residency option for foreigners who own property in the Kingdom.
Disadvantage of owning residential property in Bahrain
Maintenance and upkeep of property
One of the main disadvantages of investing in residential property in Bahrain is that if you are looking to rent your residential house or apartment to tenants, you have to maintain the apartment each time a tenant leaves. So it becomes difficult and expensive to maintain the property.
Difficulty with tenants
Residential properties are let out to individuals or families and not to businesses like banks and retail shops. Therefore, many times owners may find it difficult to retrieve rent from these individuals or families. Also, lease periods might be for shorter durations, unlike commercial rental leases which are usually for longer periods.
Is it worth investing in real estate in Bahrain?
Statistics reveal the real estate market in Bahrain is expected to reach a whooping value of US$84.48bn in 2024. Therefore investing in real estate in Bahrain is a good option. The demand for real estate is projected to reach greater values in the coming years.
Bahrain is one of the most preferred destinations for real estate investments. Stable governance, favorable government policies, good returns on investments and iconic locations are just some of the factors that make investing in Bahrain real estate more worthwhile. Iris Property Management in Bahrain is one of the best real estate companies in Bahrain. We offer quality services to real estate investors in the Kingdom.
Conclusion
Iris Property Management Company in Bahrain is one of the best real estate companies in Bahrain. If you are looking for houses and apartments for rent near you in Bahrain, Iris Property Management Company is your one-stop real estate agency in the Kingdom.
With experience in the sale and rent of commercial and residential property in Bahrain, we are one of the most efficient in the business.
Our years of dedicated service in Bahrain have earned us the title of being the most reliable real estate company in the country.
Our real estate portfolio comprises commercial and residential buildings and plots that suit the various needs of our clients. From luxury houses and apartments for rent near you to commercial flats for rent in Bahrain, we have a wide selection of properties for various clients with diverse requirements.
Contact Iris Property Management WLL for the best deals in residential and commercial flats for rent and sale in Bahrain.
