Oman » Market Report

The most favorable type of property to rent in Oman is villas and luxury apartments particularly in the city centers or along the coast and the rental market is generally pro-landlord. Property prices in Oman are increasing owing to day by day boost of demand for the property. The lowest price for a two bedroom 140 sq m apartment along the coast in Muscat, a hot favourite tourist destination, is currently OMR 100,000 or US$259,054. Tourists mostly like to spend their holidays in Oman and as the foreign investment has become simple enough the majority of tourists are interested to purchase property in Oman.

Oman is the center of an enormous property boom. House prices are continuously increasing in Muscat, the capital, the coastal cities of Salalah, Sohar, and Sur. Another reason for the high property prices in Oman is the launching of The Wave and the Blue City, the two largest integrated Tourism Complexes in Oman.

Residential land prices in Oman rose up to 400% over the past two years to OMR81 (US$210) per sq. m in June 2008, from OMR16.3 (US$42) per sq. m in 2006. Although the residential property prices are surging in Oman but they are still considered cheapest in the Middle East.

The increasing number of expatriate workers, the liberalisation of real estate laws and the young demographics of Omanis are another reason for high housing demand. Foreign property owners have the advantage of automatically getting the residency rights for their immediate families, by virtue of property acquisition.

Large oil revenues resulted in strong economy and rise in purchasing power. Foreign investments in Oman and healthy non-oil sectors added to the boom in the real estate market.

As far as the supply side is concerned, the high construction costs and land prices increased the property prices further. A Royal Decree in February 2006, allowed foreigners and expat workers to own real estate in Oman only in Integrated Tourism Complexes (ITCs).

As far as the supply side is concerned, the high construction costs and land prices increased the property prices further. A Royal Decree in February 2006, allowed foreigners and expat workers to own real estate in Oman only in Integrated Tourism Complexes (ITCs).

  

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