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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.  

trends in commercial real estate Bahrain

Post the pandemic, commercial real estate continues to evolve and take shape. With return-to-work policies now gaining momentum, the demand for commercial property in Bahrain is picking up pace.

So, what trends can we expect to witness in the real estate market in Bahrain? On one hand, we can see a steady increase in the demand for office spaces and commercial property while on the other hand; there is a measurable decline in the rental rates in Bahrain. 

A deeper dive into the trends in real estate this year leads us to the following observations:

Surge in foreign investments in Bahrain

The burgeoning economy in Bahrain is attracting international investors from every quarter of the world. So much so that Bahrain has access to an economy worth US$2 trillion, making it one of the fastest-growing economies in the world. 

The favorable geographical location, beneficial Government policies and efficient workforce are just some of the features attracting investors into the country.

This increase in international investments has a direct impact on the country’s infrastructure and consequently a surge in the demand for residential and commercial flats in Bahrain. 

Increase in the demand for office spaces

The pandemic period witnessed a steady decline in the demand for commercial or office spaces in the country. The new work-from-home culture gained impetus not only in Bahrain but throughout the world. Commercial Real estate in Bahrain took a heavy blow.

However, post the pandemic period, companies and industries are now resuming operations and demanding physical presence at offices and workplaces.

As a result, the demand for commercial property for rent in Bahrain has seen a progressive increase to the extent that commercial real estate in Bahrain is projected to grow at 2.80% annually, resulting in a market volume of US$23.7bn by 2028.

Iris Property Managers, a top real estate company in Bahrain offers attractive commercial property in Bahrain.   

Demand for co-working spacing

Another commercial real estate trend to watch out for in 2024-25 is the demand for high-quality co-working spaces. 

Co-working spaces or shared workspaces fit several companies in a single building. These companies share common facilities making it a more feasible and viable option. 

Commercial property for rent in Bahrain is picking up pace in this new sector of shared workspaces. 

Modern and Inviting commercial constructions

What’s more? The demand for high quality and attractive offices is what’s in trend. Employers and company owners are enticing employees back to offices with more attractive workspaces. Therefore, the demand for more appealing and inviting commercial property in Bahrain is on a skyward course. 

Integrated commercial property 

Top real estate companies in Bahrain like Iris Property Managers are leaning towards integrated and mixed-use projects. So, what are integrated projects? In simple words, integrated constructions combine residential, retail and commercial spaces in a single project.  

The mixed-use property encourages community living, is convenient and of course trending. 

Conclusion

On the whole, the period of economic instability is a thing of the past. The commercial real estate industry in Bahrain is looking towards upward growth

Iris Property Managers in Bahrain is a leading real estate company with a solid footing in residential and commercial property in Bahrain. 

Whether you are looking for properties for sale or rent in Bahrain, Iris Property Managers is a professional real estate company dedicated to serving customers across the Kingdom. 

Our years of experience in real estate have made us one of the top real estate companies in Bahrain. 

commercial flat for rent in bahrain

Real estate investments are one of the most promising investments on earth. Commercial spaces hold significant value in the real estate market. If you are residing in Bahrain and considering investing, why not explore the potential of investing in one of the upscale commercial spaces to witness your capital grow? To provide insights into this opportunity, we have researched the advantages of investing in a commercial flat for rent in Bahrain.

Decoding commercial real estate investment:

The word ‘commercial’ itself explains the kind of properties that are a part of this category of real estate-hotels, restaurants, entertainment parks, etc. Owing to their huge sizes, the amount invested and return on investment will always be high. However, there can be market risks and the tenant being in a tough spot financially.

The nature of investment and usage of commercial property are a few factors that affect its rental amount. The cost of acquisition, maintenance, and operations is to be borne by the tenant in the case of commercial properties. Besides these, commercial property becomes lucrative when the location and the brands it has been desirable.

Time v/s money:

In every investment, the risk lies between time v/s money. In commercial real estate investments, the duration of the lease is long. Speaking of whether one should or shouldn’t, there are both upsides and downsides to it. The numbers look high for renting a commercial real estate property but only a few people can afford to own such a space. Further, it boils down to a lot of the above-mentioned factors such as location, associated businesses, type of property, connectivity, and of course market conditions.

A downside in the time v/s money equation in commercial real estate investments is the longer duration of vacant properties. The tenants must turn up for the location and condition of the property.

Condition and future plans:

The condition of the property and future plans of an investor can determine the course of investment. For example, whether semi furnished flats for rent in Bahrain are available or unfurnished, will determine the rental yield. The condition of the property and future plan of the investor will attract a particular kind of business.

The advantages of commercial semi furnished flats in Bahrain

Are you a business owner looking for a convenient and flexible space to set up your operations in Bahrain? Consider renting a commercial semi furnished flat! These flats provide an ideal solution for businesses seeking a ready-to-use space with essential amenities. Commercial semi furnished flats in Bahrain come equipped with basic furniture, fixtures, and appliances, allowing you to save time and money on outfitting your office or retail space. With the flexibility to personalize and customize the layout according to your business requirements, renting a commercial semi-furnished flat offers a convenient and cost-effective option for establishing your business presence in Bahrain’s thriving market.

Market conditions:

The market conditions are subject to a gazillion factors. These factors will influence the rental percentage. While a few tenants will be capable while others may not be financially equipped to live up to the fluctuations. However, there are landlords who in order to keep the tenants yielding rental income have different comfortable schemes to hold their tenants.

Overall like any investment, there are pros and cons of investing in commercial real estate too. If any investor is capable of bearing the slight fluctuations of the market and sustaining it, it’s a good option. For example, an investment of 5 to 6cr is likely to yield 15-20 lakhs of annual rental income. So, choose your investment strategy wisely!  Please contact Iris Property Management to inquire about investing in commercial flats in Bahrain. Our property agents are happy to assist you at any time.

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