Oman’s real estate sector is on a promising trajectory, with projections estimating the market to reach an impressive US$310.74 billion by 2025. Leading this growth is the residential segment, valued at US$226.25 billion. This surge is closely tied to Vision 2040, the government’s long-term development strategy focused on economic diversification, attracting foreign investment, and promoting sustainable urban planning.
Current Landscape of Oman’s Real Estate Market
The real estate market in Oman has shown steady and consistent growth, fueled by national efforts to diversify the economy and boost the sector. The demand for residential and commercial properties continues to rise, supported by government initiatives to attract foreign ownership and investments.
As part of Vision 2040, Oman aims to attract US$50 billion in foreign direct investment (FDI) to create a more business-friendly environment. Notable developments, such as the OMRAN Waterfront Project and the expansion of Integrated Tourism Complexes (ITCs), have been central to this progress. Moreover, strategic zones like the Duqm Special Economic Zone and Madinat Al Irfan in Muscat have emerged as prime destinations for both local and international real estate investors.
Key Trends in Oman’s Property Market
1. Increase in Foreign Ownership
Regulatory changes easing restrictions on foreign property ownership have significantly reshaped the market. Expatriates can now purchase freehold properties in designated areas such as Al Mouj Muscat, which often come with long-term residency rights. Luxury ITCs featuring golf courses, private beaches, and resort-style amenities have also drawn interest from global investors seeking lifestyle-based real estate.
2. Rising Demand for Luxury Properties
High-end developments are increasingly popular among affluent locals and expats. Projects like Fairway Villas and Trump Golf Villas cater to demand for upscale living, offering smart technology, waterfront views, and exclusive facilities such as private pools and golf access. This demand has spurred the creation of elite, community-oriented neighborhoods.
3. Growth in Sustainable and Eco-Conscious Developments
Aligned with Vision 2040’s environmental goals, developers are incorporating green technologies into their projects—ranging from solar panels and energy-efficient systems to water conservation features. These developments are not only environmentally responsible but also increasingly sought after by eco-conscious investors.
4. Rising Interest in Smart Homes
Homebuyers are showing a strong preference for tech-integrated, modern homes that blend smart systems with traditional Omani design elements. Features such as automated lighting, temperature control, smart locks, and remote monitoring are becoming standard, even in the renovation of older homes.
Investment Hotspots and Opportunities
1. Integrated Tourism Complexes (ITCs)
Oman has issued 19 ITC licenses, attracting investments totaling US$11.37 billion. These developments offer over 42,500 housing units and 16,500 hotel rooms, making them ideal for foreign investors seeking freehold ownership in prime, lifestyle-driven locations.
2. Special Economic Zones (SEZs)
The Duqm SEZ reported a 55% increase in new investments, reaching OMR 2.1 billion in 2024. These zones offer 100% foreign ownership, tax exemptions, and up to 30 years of tax-free profits, making them especially attractive for long-term property investment.
3. Prime Areas in Muscat
Neighborhoods like Shatti Al Qurum and Al Mouj continue to deliver strong rental yields and rising property values. Signature developments such as the Fairway Villas and Marriott Residences (under AIDA) are reinforcing Muscat’s reputation as a premium real estate hub targeting high-net-worth individuals.
Future Outlook for Oman’s Housing Market
1. Steady Appreciation in Property Values
Over the next five years, property values in Oman are expected to grow at a rate of 4–6% annually, driven by increased demand, foreign investment, and government support. The expansion of freehold ownership and the growth of the tourism sector will further contribute to long-term value appreciation.
2. Rise of Smart and Sustainable Communities
Future developments will increasingly integrate:
Smart technology for energy and security management
Green infrastructure including solar and water-saving systems
Eco-friendly urban planning aligned with global sustainability standards
3. Increased Foreign Investment in Freehold Properties
With foreign ownership policies becoming more flexible, ITCs are projected to experience a significant rise in demand, positioning Oman as a competitive and accessible market for expatriate buyers.
4. Expansion of Affordable and Mid-Segment Housing
As Oman’s middle class continues to grow, the demand for mid-range and affordable housing will rise. Developers are responding with more cost-effective options aimed at first-time buyers and young families.
5. Attractive Rental Yields in Key Markets
Rental yields in premium areas such as Muscat, Al Mouj, and Qurum are expected to remain in the 6–8% range, attracting buy-to-let investors. The rise in tourist traffic and expatriate populations will continue to support high rental occupancy.
Conclusion
With strong government backing, strategic reforms, and the ambitious Vision 2040 roadmap, Oman’s real estate sector is set to become one of the most dynamic in the region. From high-end developments and smart homes to eco-friendly infrastructure and investor-friendly zones, Oman offers promising opportunities for both domestic and international investors seeking value, stability, and long-term growth.
Source: darglobal.co.uk
