With new high-end villas and apartments coming on the market, filling them has been a challenge for Bahrain’s realtors, as the Gulf’s luxury segment is highly competitive. However, the kingdom’s new regulations regarding eligibility for long-term residency for foreign nationals are expected to boost Bahrain’s appeal to potential investors. In June 2023 the government issued an edict announcing the introduction of a platinum residence permit, which grants eligible foreign nationals increased residency and property rights. The hope is that opening up wider opportunities for property ownership will feed into increased real estate sales, although it may take time for its full impact to be felt.
Qualifications & Benefits
The criteria to receive a platinum residence permit include having lived in Bahrain for at least 15 years and being deemed to demonstrate good behaviour, as well as having never been convicted of a felony or misdemeanour. An important benefit of the permit is the right to buy property anywhere in Bahrain, not just in areas at present open to overseas buyers. Until the introduction of a new enhanced residence permit, property sales in most residential areas were restricted to Bahraini citizens or GCC nationals.
A separate edict issued in June 2023 amended regulations granting the right to non-Bahraini nationals to own property in designated areas. Under previous legislation, the right to residential property ownership only extended to certain investment projects. However, there remain several restrictions on foreign property ownership, including that the kingdom’s minister of justice, Islamic affairs and waqf (a charitable endowment under Islamic law) can rule against non-Bahraini nationals buying real estate in specific areas. The platinum residence permit allows holders to apply to have spouses and immediate family members covered by the permit, a factor that could impact real estate requirements for those with platinum residence permits who have dependents outside of the country. However, the permit does not give dependents the right to work.
The platinum residence permit is part of a broader government effort to attract skills and investment to the kingdom, supporting the focus on diversification and non-oil growth in Bahrain Economic Vision 2030 and the Economic Recovery Plan. The platinum residence permit complements the Golden Residency Visa introduced in February 2022, eligibility for which includes the ownership of properties valued at BD200,000 ($530,000); employment in Bahrain for at least five years with a monthly base salary of at least BD2000 ($5300) during that period; a monthly income of more than BD4000 ($10,600) for retirees; and individuals with skills that are deemed as beneficial to Bahraini society, such as academics, artists, athletes, entrepreneurs, health care workers and scientists. Successful applicants are issued a residence permit that is valid for up to 10 years.
Going Forwards
Given the requirements, the number of foreigners qualified to invest in the wider Bahraini real estate market through the platinum residence permit scheme is limited. Indeed, as of June 2023 just 177 foreign nationals were eligible for the permit, according to the Ministry of Interior. Any accelerated move into the wider residential market may also depend on existing property ownership among those qualifying for the new permit. This is because some of these people are likely to already have invested in real estate in the kingdom as one of the ways to obtain a Golden Residency Visa.
In the longer term, as more foreign professionals move to Bahrain for work or retirement, increased demand for property away from districts where properties have traditionally been available for foreign ownership can be expected to drive up future sales. Such spikes in demand are most likely to be seen within the high-end, waterfront villa market.
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