Investment Property in Manama

Investment Real Estate in Manama

Investment Property in Manama
Investment Property in Manama

Manama property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Manama.

Search Map of Manama Investment Real Estate

Manama (Arabic: المنامة al-Manāma, Bahrani pronunciation: [elmɐˈnɑːmɐ]) is the capital and largest city of Bahrain, with an approximate population of 200,000 people as of 2020. Long an important trading center in the Persian Gulf, Manama is home to a very diverse population. After periods of Portuguese and Persian control and invasions from the ruling dynasties of Saudi Arabia and Oman, Bahrain established itself as an independent nation in 1971 after a period of British hegemony.

Although the current twin cities of Manama and Muharraq appear to have been founded simultaneously in the 1800s, Muharraq took prominence due to its defensive location and was thus the capital of Bahrain until 1923. Manama became the mercantile capital and was the gateway to the main Bahrain Island. In the 20th century, Bahrain’s oil wealth helped spur fast growth and in the 1990s a concerted diversification effort led to expansion in other industries and helped transform Manama into an important financial hub in the Middle East. Manama was designated as the 2012 capital of Arab culture by the Arab League, and a beta global city by the Globalization and World Cities Research Network in 2018.

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The financial stability of Manama has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Manama

 

Renting out your Manama buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Manamaare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Manama and be prepared to change your initial outlook.
  • Thoroughly research the Manama location with a special emphasis on fringe areas outside the main Manama metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Manama.
  • Ensure that your target investment property in Manama appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Manama

Flipping property in Manama

 

Flipping property is when we advise clients to buy a Manama property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Manama market has a time to react to the renovation.

 

The Flipping Strategy in Manama

 

Investment property flipping in Manama is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Manama real estate investments are sometimes referred to by professionals as ‘distressed’ Manama real estate.

 

What is distressed Manama property:

 

  • Manama property in need of renovation
  • Manama real estate with a change of puropose and use
  • Oversold Manama property
  • Bank repossessions in Manama

 

Put simply, long term investors in Manama purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Manama investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Manama property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Manama use a minimum profit value of 22% when looking at potential Manama projects. The reason for this is because there are lots that can go wrong in Manama property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Manama and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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