"We now have evidence to confirm that a stab from a knife was the cause of his injuries. We can exclude the possibility that this was an accident. It is murder," Dresden Police president Dieter Kroll was quoted as saying by The Guardian.
Police are currently investigating the incident and are considering different motives ranging from struggles within the Eritrean refugee community to race-related issues. On Wednesday night, police questioned Bahray's seven roommates and 16 other individuals.
His friends and roommates, gathered at the police station for questioning, described Bahray to the newspaper as peace-loving and kind, and said he was in Germany seeking a better life.
A swastika is said to have been painted on the floor of Bahray's apartment three days before the murder with the phrase, "We'll get you all."
Germany is currently experiencing social unrest over the alleged Islamizaton of the country, with the Patriotic Europeans Against the Islamization of the West (Pegida) group organizing rallies weekly.
Many German politicians, including Chancellor Angela Merkel, have condemned the movement, saying it promotes hatred, with the chancellor vowing to take Muslims in the country under her protection.