What is a typical residential rental yield in Bahrain?

Gross rental yields across major prime freehold zones such as Juffair, Seef, and Amwaj Islands typically range between 6.5% and 8.5%.

BahrainUpdated for 2026Finance

Bahrain Real Estate Rental Yield & ROI Calculator 2026

Calculate gross and net rental yields for Bahrain investment properties, incorporating the 10% municipal rental tax, RERA service fees, and vacancy buffers.

Rental Yield & Cap Rate Real Estate & Property Property Taxes & Fees

Calculated Result

Net Annual Rental Yield %

6.37%

Calculator Inputs

Property Purchase Price (BHD)

BHD

Expected Monthly Rent (BHD)

BHD

Tenant Classification (Municipal Fee)

Annual RERA Service & Maintenance Charges (BHD)

BHD

Estimated Annual Vacancy (Weeks)

weeks

Net Annual Rental Yield %

6.37%

Gross Annual Rental Yield %

Net Annual Operating Income

4,775

Annual Municipal Rent Fees

575

Total Annual Property Expenses

975

Calculated pursuant to Bahrain Municipalities Law No. 35 of 2001 and Real Estate Regulatory Authority (RERA) regulations.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: قانون البلديات بمملكة البحرين الصادر بالمرسوم بقانون رقم (35) لسنة 2001 (الرسم البلدي 10% على العقارات المؤجرة للأجانب) وقانون مؤسسة التنظيم العقاري RERA رقم (27) لسنة 2017Last Verified: 2026-09-07

Calculation Methodology

Gross yield compares annual rental revenue to property acquisition price. Net yield deducts municipal rent tax (10% for expat leases), RERA service levies, and vacancy allowances.

Frequently Asked Questions

Under the Municipalities Law, a 10% municipal fee is levied on the monthly rent of properties leased to non-Bahrainis, compared to a nominal 2.5 BHD fee for citizen primary residences.