13.7% Bahrain economic growth in next five years, 8.3% to 11% property rental returns

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain’s economy is tipped to expand by 13.7 per cent over the next five years, offering rental returns of 8.3 to 11 per cent and presenting property investors with an appealing mix of stability and profits.

Even inflation, often seen as a burden, works in their favour by driving up property values and easing debt pressures. A report from SandsOfWealth has painted Bahrain as an investment haven for those looking for opportunities across various sectors.

Its calm political waters and a steadily growing economy are owed to strategic reforms aimed at reducing dependence on oil revenues.

Economic base

Instead, the country has broadened its economic base, building growth in areas such as finance, tourism, and IT.

Strong ties with GCC neighbours and global allies further secure Bahrain’s footing as a reliable hub for investment, ensuring both economic resilience and geopolitical steadiness.

This forward march is forecast to spark demand for property, potentially driving up housing values.

Profits

For investors, this spells steady profits in a secure market, further sweetened by Bahrain’s impressive rental yields.

According to Numbeo, property investors can expect returns between 8.3 and 11 per cent, putting Bahrain on the global map as one of the most rewarding real estate markets.

However, the report pointed out that while growth numbers are promising, they may not entirely meet expectations in business circles.

Yet, Bahrain’s consistent efforts to share updated economic data give investors a sharper edge in decision-making.

Optimism

The Business Confidence Index (BCI) reflects optimism among local leaders.

The latest numbers published by The Global Economy show Bahrain’s BCI at 20 points, a solid score, though slightly down from last year’s 31.

This steady confidence signals a strong belief in the country’s economic trajectory, something that bodes well for property owners and developers.

Over the past five years, Bahrain’s per capita GDP has grown by 6 per cent, while its population has swelled by 8 per cent.

Growth

This mix of economic and demographic growth is fuelling demand for housing, particularly in hotspots like Manama, Muharraq, and Riffa.

The report also flagged Bahrain’s inflation rate as unusually helpful for investors.

Instead of posing a risk, inflation in Bahrain has pushed up property values, raised rents, and reduced the real weight of debt repayments.

Mortgage payments

This makes mortgage payments less taxing and allows property to act as a safeguard for wealth in uncertain times.

The IMF expects Bahrain’s inflation to hover at an average of 1 per cent over the next five years, giving landlords the comfort of stable purchasing power for rental income.

SandsOfWealth concluded that 2025 offers a golden moment for property buyers.