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Property prices in Oman have seen remarkable growth over the past year, with apartments experiencing a 17% increase while the overall residential market gained 7.3% in 2025.
As of September 2025, Oman's real estate market offers compelling opportunities for both investors and homeowners, with average prices ranging from OMR600 per square meter in budget-friendly areas to OMR1,200 per square meter in prime Muscat locations. The market has recovered strongly since 2020, with property values increasing by approximately 60%, making it an attractive destination for foreign investors seeking affordable entry points compared to neighboring Gulf countries.
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Oman's property market offers competitive pricing with apartments averaging OMR1,841/sqm nationally and prime Muscat areas reaching OMR1,000-1,200/sqm. The market shows strong growth potential with no capital gains tax and favorable financing conditions for residents.
Budget-friendly areas like Sohar and Al Amerat offer excellent entry points at OMR600-900/sqm, while emerging locations show promising appreciation potential driven by Vision 2040 infrastructure developments.
| Area Type | Price Range (OMR/sqm) | Best For |
|---|---|---|
| Prime Muscat (Al Mouj, Diplomatic Area) | 1,000-1,200 | Luxury living, high rental yields |
| Mid-market Muscat | 800-1,000 | Balanced investment, residency |
| Budget areas (Sohar, Nizwa, Salalah) | 600-900 | Affordable entry, rental income |
| Emerging zones (Al Amerat) | 700-900 | Capital appreciation, future growth |
| Land plots (development areas) | 300-1,000 | Long-term investment, development |
What's the current average price per square meter in Oman?
The Omani residential property market shows distinct pricing tiers as of September 2025.
Prime areas in Muscat command the highest prices, ranging from OMR1,000 to OMR1,200 per square meter (US$2,080–2,600). These luxury zones include Al Mouj, the Diplomatic Area, and Madinat Al Sultan Qaboos, where waterfront properties and branded residences achieve premium valuations.
The national median for apartments sits at approximately OMR1,841 per square meter (OMR171 per square foot), while houses and villas average OMR1,528 per square meter (OMR142 per square foot). This represents the broader market beyond premium locations.
Budget-friendly zones across Oman, including Sohar, Nizwa, and Salalah, offer more accessible entry points with prices ranging from OMR600 to OMR1,000 per square meter. These areas provide excellent opportunities for first-time buyers and investors seeking affordable market entry.
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How do prices vary between property types like apartments, villas, and land plots?
Property type significantly impacts pricing in Oman's residential market, with apartments showing the strongest growth trajectory.
| Property Type | Price Range (OMR/sqm) | Annual Growth 2025 |
|---|---|---|
| Apartments | 800-1,200 | +17% |
| Villas | 1,000-1,400 | +6.4% |
| Land Plots | 300-1,000 | +5.5% |
| Luxury Waterfront | 1,200-1,500 | +8% |
| Budget Developments | 600-900 | +12% |
Apartments experienced the most dramatic price surge in 2025, with a 17% year-on-year increase compared to 6.4% for villas and 5.5% for land plots. This growth reflects strong demand for urban living and rental investment opportunities.
Villas typically command higher absolute prices per square meter, ranging from OMR1,000 to OMR1,400, but show more moderate appreciation rates. The villa market appeals primarily to families and long-term residents seeking larger living spaces.
Land prices vary significantly based on location and development potential, with new development areas starting around OMR300 per square meter and established zones reaching OMR1,000 per square meter.
Which areas are the most expensive, which are considered budget-friendly, and which are upcoming hot spots?
Oman's property market clearly segments into luxury, budget, and emerging investment zones.
The most expensive areas center around Muscat's prime locations. Al Mouj, the Diplomatic Area, and Madinat Al Sultan Qaboos command OMR900 to OMR1,200 per square meter. Yiti stands out with prices reaching OMR1,873 per square meter (OMR174 per square foot), particularly for waterfront properties and branded residences that deliver the highest rental yields.
Budget-friendly areas offer excellent value propositions for cost-conscious buyers. Al Amerat, Sohar, Salalah City Center, and Nizwa provide accessible entry points at OMR600 to OMR900 per square meter. Al Amerat particularly stands out for affordable land acquisition and strong future growth potential.
Emerging hotspots present the most compelling investment opportunities. Al Amerat leads this category with comprehensive infrastructure development plans, including new road tunnels, enhanced amenities, and projected population growth. New City Salalah, especially areas near Sultan Qaboos University, shows promise with large-scale developments and increasing rental demand from students and professionals.
These emerging zones benefit from Vision 2040 initiatives, positioning them for significant appreciation as infrastructure projects materialize over the next decade.
How have average prices changed compared to one year ago and compared to five years ago?
Oman's property market demonstrates robust recovery and sustained growth momentum.
The 2024-2025 period delivered exceptional performance across all segments. Overall residential prices increased by 7.3%, with apartments leading at 17% growth, followed by villas at 6.4% and land at 5.5%. This performance significantly outpaced regional inflation and economic growth rates.
The five-year trajectory since 2020 reveals even more dramatic appreciation. Property values have surged approximately 60% from their pandemic lows, representing one of the strongest recoveries in the Gulf region. This recovery reflects Oman's economic diversification efforts, infrastructure investments, and attractive foreign investment policies.
Prime Muscat villas have historically delivered annual appreciation of 3-7%, providing steady capital growth for long-term investors. The acceleration in recent years indicates market maturation and increasing international recognition of Oman's investment potential.
These trends position Oman as a compelling alternative to more expensive Gulf markets while maintaining strong fundamentals for continued growth.
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What is the forecast for prices in one year, five years, and ten years?
Oman's property market outlook remains positive across all timeframes, driven by government initiatives and economic diversification.
The one-year forecast suggests stable to moderate growth of 2-6%, with apartments and prime segments likely to outperform. Market dynamics favor continued apartment appreciation due to urbanization trends and rental demand from expatriate professionals.
Five-year projections are more optimistic, with the market size expected to reach US$7.42 billion. Steady growth in rental yields and increased mid-market supply will support sustained price appreciation. Infrastructure development under Vision 2040 will begin materializing, benefiting emerging areas like Al Amerat and Salalah.
The ten-year outlook is particularly compelling. Vision 2040 targets delivery of 62,800 new residential units by 2030, while continued infrastructure expansion and foreign investment should support long-term price appreciation. Government diversification efforts away from oil dependency will create new employment centers and housing demand.
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How does Oman's property market compare with similar big cities in the region or worldwide?
Oman positions itself as a value proposition in the Gulf property market while maintaining competitive investment returns.
Pricing comparison with regional markets shows Oman's competitive advantage. While Oman's luxury properties can reach top-tier prices, the mass market remains well below Dubai, Doha, and Abu Dhabi averages. This creates opportunities for investors priced out of more expensive Gulf markets.
Rental yields in Oman range from 3-8%, comparable to regional averages but with lower entry costs. Dubai typically delivers 4-7% yields but requires significantly higher capital investment, while Oman offers similar returns with more accessible purchase prices.
Tax advantages set Oman apart from many international markets. The absence of capital gains tax and annual property taxes creates a more favorable investment environment compared to developed markets in Europe or North America.
For foreign investors, Oman provides more accessible entry requirements compared to UAE or Qatar, with clear pathways to residency through property investment above OMR250,000.
What are typical surface sizes and how do prices scale with larger or smaller properties?
Property sizes in Oman follow distinct patterns that affect pricing dynamics and investment strategies.
Apartment sizes typically range from 70 to 140 square meters, with prices scaling linearly with size. Studio and one-bedroom units (70-90 sqm) cost OMR75,000 to OMR150,000, while two to three-bedroom apartments (100-140 sqm) range from OMR120,000 to OMR250,000. This linear scaling makes larger apartments attractive for rental yield optimization.
Villa builds commonly span 300 to 500 square meters, with price per square meter generally decreasing for larger properties. Entry-level villas start around OMR300,000 to OMR450,000, offering better value per square meter than smaller units due to economies of scale in construction and land use.
Land plots in new development zones typically range from 600 to 2,000 square meters. Larger plots often command lower per-square-meter prices but require higher absolute investment, making them suitable for developers or long-term investors planning custom construction.
The scaling effect means investors can achieve better unit economics with larger properties, while smaller units offer easier entry and higher liquidity.
What are the total purchase costs including fees, taxes, and registration?
Oman's property transaction costs remain competitive compared to regional markets, with transparent fee structures.
| Cost Component | Rate/Amount | Notes |
|---|---|---|
| Transfer Fee | 3% of property value | Paid to government |
| Legal/Registration | OMR500-1,200 | Per transaction |
| VAT | 5% | New builds only, resale often exempt |
| Property Tax | None | No annual property tax |
| Capital Gains Tax | None | No tax on property sales |
The 3% transfer fee represents the most significant transaction cost, paid directly to the government during property registration. Legal and registration fees vary based on property value and complexity, typically ranging from OMR500 to OMR1,200 per transaction.
VAT at 5% applies primarily to new construction projects, while resale properties often qualify for exemptions. This distinction can significantly impact total purchase costs for buyers choosing between new and existing properties.
The absence of annual property taxes and capital gains taxes creates ongoing cost advantages compared to many international markets. Total upfront costs typically represent 20-30% of property value, including down payment, fees, and taxes.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Oman versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the financing and mortgage conditions that affect the total cost of buying?
Mortgage availability and terms vary significantly based on residency status and property location.
Omani nationals enjoy the most favorable financing conditions, with loan-to-value ratios often reaching 85-90% and 25-year terms. Interest rates typically range from 5-6%, making homeownership accessible for local residents.
Expatriate residents face more restrictive conditions but still access reasonable financing. Maximum LTV ratios reach 80%, properties must be located in Integrated Tourism Complexes (ITCs), and interest rates remain competitive at 5-6%. Importantly, property purchases above OMR250,000 qualify for five-year residency visas.
Non-resident foreign buyers generally require cash purchases or financing arranged in their home countries. Local banks rarely extend mortgages to non-residents, making cash availability crucial for international investors.
Mandatory insurance requirements and repayment schedules typically require completion by age 60-65. These conditions affect long-term investment planning and total cost calculations for buyers approaching retirement age.
Can you give example purchase prices for different property types and areas?
Real estate pricing across Oman varies dramatically by location and property type, reflecting diverse investment opportunities.
| Area | Apartment 90sqm | Villa 400sqm | Land Plot 1000sqm |
|---|---|---|---|
| Al Mouj (Premium) | OMR120,000 | OMR500,000+ | OMR800,000 |
| Madinat Qaboos | OMR110,000 | OMR430,000 | OMR700,000 |
| Salalah City | OMR80,000 | OMR210,000 | OMR300,000 |
| Al Amerat (Emerging) | OMR70,000 | OMR180,000 | OMR180,000 |
| Sohar (Budget) | OMR65,000 | OMR150,000 | OMR120,000 |
Al Mouj represents the premium market segment, with waterfront apartments commanding OMR120,000 for 90 square meters and luxury villas exceeding OMR500,000. Land plots in this prestigious development reach OMR800,000, reflecting marina access and branded amenities.
Salalah City offers balanced pricing for southern Oman, with apartments at OMR80,000 and family villas around OMR210,000. This market benefits from tourism seasonality and university proximity, supporting rental demand.
Al Amerat and Sohar provide excellent entry points for budget-conscious investors, with complete apartments available from OMR65,000-70,000 and substantial land plots starting at OMR120,000-180,000.
What are the smartest choices right now depending on whether you want to live, rent short-term, rent long-term, or buy to resell later?
Investment strategy should align with specific goals and market conditions in Oman's diverse property landscape.
For personal residence, focus on ITC properties for residency qualification and target Muscat areas like Al Mouj or Madinat Qaboos for amenities and future appreciation. These locations provide lifestyle benefits while maintaining investment value.
Short-term rental strategies should target Salalah during Khareef peak season, Al Mouj luxury properties, and serviced apartments in business districts. Tourism seasonality creates substantial income opportunities for properties positioned correctly.
Long-term rental success comes from apartments and villas in city centers near business and education hubs, particularly in Salalah, Muscat, and Sohar. Steady demand from expatriate professionals and students supports consistent rental income.
Capital appreciation strategies favor emerging neighborhoods with planned infrastructure development, particularly Al Amerat and Salalah expansion zones. Mid-market apartments in growth areas offer the best balance of affordability and appreciation potential.
Yield-focused investors should consider affordable apartments in Sohar and Salalah or new developments with strong rental demand and management services.
Overall, what are the best options today for someone looking to enter the market?
Market entry in September 2025 offers multiple pathways depending on budget and investment objectives.
The prime segment focuses on waterfront properties in Muscat for luxury lifestyle and strong rental returns. These properties provide prestige, amenities, and consistent appreciation but require substantial capital investment.
The growth segment centers on Al Amerat and Salalah for affordable market entry with strong appreciation potential. Infrastructure development and population growth support long-term value creation in these emerging areas.
Rental yield optimization targets Sohar, Salalah city center, and Muscat mid-market properties. These locations balance affordable entry costs with reliable rental demand from working professionals and students.
Residency-focused strategies prioritize ITC properties above OMR250,000 for foreign nationals seeking five-year visa qualification. This approach combines immigration benefits with property investment.
Diversification strategies recommend mixing apartments and land plots with medium-term holding periods. This approach captures both immediate rental income and long-term capital appreciation while spreading risk across property types and locations.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Oman's property market in September 2025 presents compelling opportunities across multiple segments, from budget-friendly entry points in emerging areas to premium waterfront investments in Muscat.
The combination of competitive pricing, favorable tax treatment, strong growth fundamentals, and accessible financing makes Oman an attractive alternative to more expensive Gulf markets while maintaining excellent potential for both capital appreciation and rental yields.
Sources
- Sands of Wealth - Oman Price Forecasts
- Mirabello Consultancy - Oman Golden Visa Real Estate
- Properstar - Oman House Prices
- Oman Property Investment - Buy to Let Guide 2025
- Investasian - Oman Country Guide
- Arab News - Oman Business Update
- Sands of Wealth - Muscat Area Guide
- Mordor Intelligence - Oman Residential Real Estate Market