Date of Issue: 5 August 2025
Authority: Real Estate Regulatory Authority (RERA)
Instrument: Decision No. (1) of 2025
On 5 August 2025, the Chairman of the Board of the Real Estate Regulatory Authority (RERA) issued Decision No. (1) of 2025, introducing a comprehensive framework for licensing and regulating the activity of Managing Common Areas in shared real estate properties.
The Decision establishes a mandatory licensing regime for individuals and entities engaged in the management, operation, and maintenance of common areas within jointly owned real estate developments. It introduces licensing categories, qualification requirements, operational obligations, record-keeping standards, and enforcement mechanisms aimed at enhancing governance and professionalism within Bahrain’s real estate sector.
Managing common areas in jointly owned properties now requires a RERA license.
Two categories of licenses have been established, each with specific eligibility requirements.
Licensees must comply with operational, financial, insurance, and governance obligations.
Extensive record-keeping and transparency requirements have been introduced.
RERA may suspend or revoke licenses in specified circumstances.
Existing managers of common areas must regularize their position within six months from the publication of the Decision.
On 5 August 2025, the Chairman of the Board of the Real Estate Regulatory Authority (RERA) issued Decision No. (1) of 2025, introducing a comprehensive framework for licensing and regulating the activity of Managing Common Areas in shared real estate properties.
This new regulation falls under the broader legislative ecosystem governing the real estate sector, namely Law No. (27) of 2017 on the Regulation of the Real Estate Sector (as amended by Decree-Law No. (41) of 2022), and supplements previous resolutions on property management, owners’ unions, and licensing.
The Decision forms part of Bahrain’s wider real estate regulatory framework and operates alongside:
Law No. (27) of 2017 on the Regulation of the Real Estate Sector.
Decree-Law No. (41) of 2022 amending the Real Estate Sector Law.
Existing regulations governing property management, owners’ unions, and licensing requirements within the real estate sector.
The Decision introduces a detailed licensing framework for any natural or legal person wishing to manage, operate, and maintain common areas in real estate developments—such as corridors, entrances, elevators, and other shared facilities.
It formalizes a two-tier licensing structure, prescribes licensing requirements, and outlines the obligations, restrictions, and operational standards for licensees.
This move is part of RERA’s ongoing effort to enhance professionalism and governance in the management of jointly owned real estate.
No person may manage common areas without obtaining a license from RERA. Applicants must submit their request via the official RERA portal, attaching commercial registration, identity documents, and other particulars.
Applications are processed within 5 business days. If RERA fails to respond within this period, the application is deemed rejected. A written justification is required for refusals, and rejected applicants may appeal the decision to RERA’s CEO.
Two categories of licenses are created:
Category (A):
For managing central, main, or sub-owners’ unions. Applicants must either be the project developer or have a minimum of three years’ experience in real estate management. They must also engage or employ experts in finance, engineering, and law.
Category (B):
For managing sub-unions only. Applicants must have at least one year of experience in property or common area management.
Both individuals and legal entities can apply, provided they meet specific qualifications including good financial standing and absence of criminal records involving dishonesty or breach of trust.
The licensee must directly manage the shared areas, including their operation, maintenance, and repair.
They are expected to:
Carry out periodic and urgent repairs.
Maintain dedicated financial records and bank accounts (for operational and reserve funds).
Ensure insurance coverage for structural damage and liability risks.
Establish clear contracting terms with suppliers and service providers.
Disclose any conflicts of interest to clients.
Participate in RERA-mandated training programs to ensure ongoing professional development.
Licensees must keep detailed records for at least 10 years, covering contracts, insurance, complaints, meetings, and financial audits.
They must also:
Display their license at their business location.
Include their license number on their website and social media.
Notify RERA of any cessation of business or material changes within 30 days.
Transfer all documents and records upon resignation or replacement in accordance with Article (67 bis 1) of the Real Estate Law.
Licenses may be revoked if the licensee dies (in the case of individuals), ceases business for two years, loses eligibility, or is found to have obtained the license fraudulently.
RERA reserves the right to suspend or withdraw licenses and publish related decisions on its website.
Additionally, any person currently managing common areas must regularize their position within 6 months from the date of publication of the Decision.
This Decision represents a significant step toward professionalizing common area management in Bahrain’s real estate sector. It strengthens RERA’s regulatory grip over what was previously an under-regulated field, and ensures that owners’ unions, developers, and property managers operate within a transparent, accountable, and service-oriented framework.
Real estate professionals—especially those managing jointly owned properties—must now act quickly to comply, by securing the appropriate license and adjusting their internal processes and contractual arrangements in line with the new regulation.
Real estate professionals and entities involved in the management of jointly owned properties should consider:
Assessing whether their current activities fall within the scope of the licensing requirements.
Determining the appropriate license category.
Reviewing internal governance, operational, and compliance procedures.
Evaluating contractual arrangements with suppliers and service providers.
Ensuring compliance with record-keeping, reporting, and insurance obligations.
Taking steps to regularize their position within the six-month compliance period where applicable.
Yes. No person may manage common areas without obtaining a license from RERA.
Category (A) permits the management of central, main, and sub-owners’ unions, while Category (B) permits the management of sub-unions only.
Yes. Both natural persons and legal entities may apply, subject to meeting the prescribed requirements.
Licensees must maintain records relating to contracts, insurance, complaints, meetings, and financial audits for a minimum of ten years.
Any person currently managing common areas must regularize their position within six months from the publication date of the Decision.
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