Oman » Rental Market

A great number of apartments and villas are available in Oman both within and outside enclosed compounds but expatriate cannot own land or property in Oman therefore having no choice but to rent. Mostly urban areas and suburban areas are considered as residential areas and the desert is for camels and Bedouin.

Rapidly growing rentals have pushed the Omani government to make radical changes to rental laws in the country. These laws will restrict annual rental increase at 7% in a measure expected to protect tenant rights. A government formed committee has recommended these key changes and is also suggesting a minimum four year contract for the residences and as long as seven years on commercial premises.

The implementation of minimum tenancy restrictions will keep the property owners from being able to push out tenants in favour of higher rents. This will make a favour for the lower class citizens to budget over the long term. The rent cap and the tenancy period clause are expected to be implemented soon.

In addition to rental cap, government is also expected to provide land to private developers outside the Muscat for the construction of affordable residential property as means to increase housing stocks and to reduce the high rental pressure because of supply shortages.

Oman’s rental market has met by the soaring prices for the construction materials, for recent increase of 20% and 11% in cement and steel prices.
Rent is not the only cost that is getting capped rather the Oman is looking to put caps or ceilings on at least nine basic food items. The rising cost of rice, wheat flour, sugar, lentils, oil, tea, milk powder, evaporated milk powder and ghee is also causing rapid inflation.