Long-Term Property Rental in Brunei

Published on October 4, 2025 and written by Cyril Jarnias

Real estate investment in Brunei offers attractive opportunities for foreign investors seeking appealing returns and portfolio diversification. This small sultanate located on the island of Borneo enjoys stable economic growth and has a booming real estate market, particularly in the capital Bandar Seri Begawan. Long-term rentals are especially popular, offering prospects of regular income for property owners. Here is a comprehensive guide to help you get started with long-term real estate rental in Brunei.

The Bruneian Rental Market: Untapped Potential

Brunei features a dynamic rental market, driven by sustained demand from expatriates and local young professionals. The country’s political and economic stability, along with its high standard of living, make it an attractive destination for many skilled workers.

The oil and gas sector, the backbone of Brunei’s economy, attracts numerous expatriates seeking quality housing for multi-year stays. These potential tenants typically look for modern, well-located properties offering certain comforts. The preferred residential areas are mainly in the capital Bandar Seri Begawan and its surroundings, particularly in the neighborhoods of Gadong, Kiulap, and Berakas.

The rental market in Brunei is characterized by a still limited supply of high-end housing, creating opportunities for investors looking to position themselves in this segment. Apartments and houses with 2 to 4 bedrooms are particularly sought after by expatriate families.

Legal Framework: Securing Your Rental Investment

Before venturing into long-term rental in Brunei, it is crucial to understand the legal framework governing this type of operation. Although the country offers a favorable environment for foreign investors, certain specifics must be considered.

Land ownership in Brunei is reserved for Bruneian citizens, but foreigners can acquire real estate through long-term leases, typically for 99 years. This restriction does not prevent foreign investors from profiting from the rental market, but it is important to structure your investment properly.

To rent out a property long-term in Brunei, you will need to:

• Obtain permission from the Land Department to rent your property
• Comply with local rental regulations, particularly regarding safety and habitability standards
• Declare your rental income to Bruneian tax authorities

It is highly recommended to enlist a local lawyer specializing in real estate law to guide you through these steps and ensure your investment complies with current legislation.

The Art of Drafting a Solid Lease Agreement

Drafting a clear and detailed lease agreement is essential to protect your interests as a property owner and establish a healthy relationship with your tenant. In Brunei, there is no standardized lease template, giving you some flexibility in contract drafting.

Your lease agreement should include the following elements:

• Identification of the parties (owner and tenant)
• Accurate description of the leased property
• Lease duration (typically 1 to 3 years for long-term rentals)
• Rent amount and payment terms
• Security deposit amount and conditions (usually equivalent to 1 or 2 months’ rent)
• Respective obligations of the owner and tenant
• Lease renewal and termination conditions

It is recommended to have your lease agreement drafted or reviewed by a Bruneian legal professional to ensure it complies with local legislation and effectively protects your interests.

Also consider including specific clauses adapted to the local context, such as liability for damages related to weather conditions (heavy rains, floods) or prohibition of subletting without prior authorization.

Pricing Strategy: Optimizing Your Rental Income

Setting the right rent is a delicate exercise requiring good knowledge of the local market and a detailed analysis of your property. In Brunei, rents vary considerably depending on location, quality, and amenities offered by the housing.

To determine the optimal rent for your property, consider the following factors:

• Location: central areas of Bandar Seri Begawan like Gadong or Kiulap command higher rents
• Size and type of property: single-family homes and large apartments are particularly sought after by expatriate families
• Facilities and general condition of the property: presence of a pool, garden, or parking can justify higher rent
• Competition: analyze rents charged for similar properties in the same neighborhood

As a guide, here are some monthly rent ranges observed in Bandar Seri Begawan in 2025:

– 2-bedroom apartment in city center: 1,000 to 1,500 BND (600 to 900 EUR) – 3-bedroom house in suburbs: 1,500 to 2,500 BND (900 to 1,500 EUR) – Luxury 4-bedroom villa: 3,000 to 5,000 BND (1,800 to 3,000 EUR)

Do not hesitate to consult local real estate agents to refine your pricing strategy and ensure your rent is competitive while maximizing your income.

The Art of Property Management: Cultivating Lasting Relationships

Effective management of your rental property and your relationships with tenants is crucial to ensuring long-term profitability of your investment. In Brunei, where the expatriate community is relatively small, your reputation as a property owner can significantly impact your ability to attract and retain quality tenants.

Here are some tips for successful property management in Brunei:

• Be responsive: quickly address tenant requests and concerns
• Maintain your property regularly: schedule periodic inspection visits and perform necessary repairs promptly
• Respect local culture: familiarize yourself with Bruneian customs and adapt your communication accordingly
• Offer additional services: including cleaning or garden maintenance in the rent can be an advantage for attracting expatriate tenants
• Be flexible: consider adapting lease duration or certain conditions to meet specific tenant needs

If you do not reside in Brunei or prefer to delegate daily management of your property, it may be wise to hire a local property management agency. These professionals know the Bruneian market perfectly and can help you optimize your investment’s profitability while freeing you from daily management constraints.

Property management fees in Brunei generally range between 5% and 10% of the monthly rent, depending on the scope of services provided. Although this represents an additional cost, the expertise and local network of an agency can prove valuable, especially for quickly finding quality tenants and effectively managing any potential problems.

Future Prospects for Rental Investment in Brunei

The rental market in Brunei presents encouraging prospects for the coming years. The Bruneian government has launched several initiatives aimed at diversifying the country’s economy beyond the oil and gas sector, which should stimulate the arrival of new expatriates and support rental demand.

Among the promising sectors likely to attract foreign professionals are:

• Information and communication technologies
• Renewable energy
• Luxury tourism
• Islamic financial services

These economic developments should help maintain sustained demand for quality housing, particularly in urban areas of Bandar Seri Begawan and its surroundings.

Furthermore, the Bruneian government continues to invest in improving the country’s infrastructure, particularly in transportation and telecommunications, making the country increasingly attractive to investors and expatriates.

However, it is important to remain vigilant about market developments and adapt your investment strategy accordingly. Diversifying your real estate portfolio, both in terms of property types and locations, can help minimize risks and optimize your long-term returns.

In conclusion, long-term rental investment in Brunei offers interesting prospects for savvy investors. With a thorough understanding of the local market, rigorous management of your property, and a tenant satisfaction-focused approach, you can leverage the potential of this growing market. Remember to surround yourself with competent local professionals to guide you in your approach and maximize your investment’s chances of success.