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Oman's rental market offers some of the most affordable options in the Gulf region, with apartment yields reaching 8.5% in prime Muscat areas.
As of September 2025, rental prices vary significantly between locations, with Muscat city center commanding OMR 197-400 monthly for one-bedroom apartments while similar properties in suburbs cost OMR 134-300. The market has recovered strongly from pandemic lows, with rents rising 5-17% annually since 2023.
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Muscat dominates the rental market with one-bedroom apartments ranging OMR 197-400 monthly in prime areas, while villas command OMR 900-2,000 across the capital.
Rental yields currently peak at 8.5% for prime apartments, making Oman competitive within the Gulf region despite lower absolute rental prices.
| Property Type | Muscat City Center (OMR/month) | Suburbs/Other Cities (OMR/month) |
|---|---|---|
| Studio Apartment | 180-335 | 120-250 |
| 1-Bedroom Apartment | 197-400 | 134-300 |
| 2-Bedroom Apartment | 300-650 | 200-450 |
| 3-Bedroom Apartment | 359-650 | 250-500 |
| Villa (3-5 bedrooms) | 900-2,000 | 500-1,200 |
| Townhouse | 450-800 | 350-600 |
| Shared Accommodation | 60-120 | 30-80 |
What are the average rents right now across the main areas in Oman?
Muscat city center commands the highest rents in Oman, with one-bedroom apartments ranging from OMR 197 to OMR 400 monthly as of September 2025.
Three-bedroom apartments in Muscat's prime areas cost between OMR 359 and OMR 650 per month, while luxury villas reach OMR 900 to OMR 2,000 monthly depending on location and amenities. The capital's International Transformation Centers (ITCs) specifically cater to expatriates and command premium rates within these ranges.
Secondary cities offer significantly lower rental costs. Salalah city center features one-bedroom apartments between OMR 150 and OMR 300 monthly, while Nizwa and Sohar typically range from OMR 150 to OMR 250 for similar properties. These cities provide excellent value for money, especially for families seeking larger spaces at affordable rates.
Shared accommodation represents the most budget-friendly option, with rooms in Muscat costing OMR 60 to OMR 120 monthly, and OMR 30 to OMR 80 in smaller cities. This option particularly appeals to young professionals and students looking to minimize housing costs.
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How do rental prices differ between apartments, villas, and townhouses?
Apartments represent the most affordable rental option in Oman's property market, particularly outside city centers where prices drop 20-30% compared to prime locations.
Villas command premium rates, typically costing 2 to 4 times more than comparable apartments in the same area. A three-bedroom villa in Muscat ranges from OMR 900 to OMR 2,000 monthly, while a three-bedroom apartment costs OMR 359 to OMR 650 in similar neighborhoods. This price differential reflects the additional space, privacy, and amenities that villas provide.
Townhouses sit between apartments and villas in pricing structure. In Muscat, three-bedroom townhouses typically cost OMR 450 to OMR 800 monthly, offering more space than apartments while remaining more affordable than standalone villas. The townhouse market remains less developed than apartments or villas, limiting options in some areas.
The premium for villas and townhouses becomes more pronounced in expatriate-focused areas and International Transformation Centers, where demand for family-sized properties with private outdoor space drives prices higher. Apartments maintain consistent demand across all demographic segments, keeping prices more stable.
What is the typical rent per square meter depending on property type and location?
Muscat Governorate commands OMR 1,528 per square meter annually for apartments and OMR 1,552 per square meter for houses and villas as of September 2025.
These rates translate to approximately OMR 127 per square meter monthly for apartments and OMR 129 per square meter monthly for villas in the capital region. The minimal difference between apartment and villa rates per square meter indicates that villas' higher absolute costs stem from their larger sizes rather than premium per-unit-area pricing.
Dhofar Governorate, which includes Salalah, offers more affordable rates at OMR 1,145 per square meter annually for villas, equivalent to OMR 95 per square meter monthly. This represents a 26% discount compared to Muscat rates, reflecting lower overall demand and cost of living in the southern region.
Townhouses typically align with villa pricing per square meter, though limited market data makes precise comparisons challenging. The consistency of per-square-meter rates across property types suggests that location and size drive rental costs more than property configuration.
What does the total rent cost include when you factor in agency fees, maintenance, and taxes?
Agency fees typically equal one month's rent or a fixed fee structure, adding immediate upfront costs to your rental agreement.
Basic maintenance for apartments is usually included in rental agreements, covering common area upkeep, water systems, and structural repairs. Villa tenants often contribute to maintenance costs, particularly for private gardens, pools, and exterior upkeep, which can add OMR 50 to OMR 200 monthly depending on property size and amenities.
Residential rentals remain exempt from Oman's 5% VAT, keeping costs predictable for tenants. However, International Transformation Centers charge monthly service fees ranging from OMR 40 to OMR 200, covering security, landscaping, and community amenities. These fees are mandatory for ITC residents and should be factored into total housing costs.
Commercial property rentals and some mixed-use developments do incur the 5% VAT, though this primarily affects business tenants rather than residential renters. Property insurance typically remains the landlord's responsibility, though tenants may need contents insurance.
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How much would mortgage payments compare to current average rents for similar properties?
Mortgage rates in Oman currently range from 4% to 6% annually, making property ownership financially competitive with renting for many buyers.
A typical OMR 100,000 home financed with a 20-year loan at 5.5% interest requires monthly payments of approximately OMR 690 for principal and interest. This payment level aligns closely with rental costs for upper-midrange apartments or smaller villas in Muscat, where three-bedroom units rent for OMR 359 to OMR 650 monthly.
The ownership advantage becomes more pronounced for larger properties. Villa purchases often result in monthly mortgage payments below equivalent rental costs, particularly when factoring in the equity building component of ownership. Additionally, property ownership eliminates annual rent increases and provides long-term housing security.
However, purchasing requires significant upfront capital for down payments, typically 20-30% of property value, plus transaction costs including the 3% transfer fee. Renters avoid these initial costs and maintenance responsibilities, making renting attractive for temporary residents or those prioritizing liquidity.
What are the best options if you're targeting short-term rentals versus long-term rentals?
Short-term rentals in Muscat command OMR 20 to OMR 45 nightly for studio and one-bedroom units, generating higher per-night income but requiring intensive management.
Business travelers and tourists in Muscat and Salalah represent the primary short-term rental market, particularly seeking furnished apartments near commercial districts, airports, and tourist attractions. However, cleaning costs, utility fluctuations, and booking platform fees significantly impact net returns compared to advertised nightly rates.
Long-term rentals provide stable, predictable income with minimal management requirements. Professional expatriates and local families prefer annual lease agreements, reducing vacancy periods and tenant turnover costs. This stability particularly benefits property owners living abroad or managing multiple properties.
Property location determines optimal rental strategy. Units near business districts, international schools, and expatriate communities perform better as long-term rentals, while properties near tourist attractions, beaches, and cultural sites suit short-term strategies. Market regulations may limit short-term rental operations in certain residential areas.
Can you give me some example rents for studios, 1-bedrooms, 2-bedrooms, and villas?
Studio apartments in prime Muscat areas rent for OMR 180 to OMR 335 monthly, typically covering 45 square meters with basic amenities and convenient location access.
| Property Type | Size (m²) | Muscat Prime Areas (OMR/month) |
|---|---|---|
| Studio Apartment | 45 | 180-335 |
| 1-Bedroom Apartment | 60-80 | 200-400 |
| 2-Bedroom Apartment | 100+ | 300-650 |
| 3-Bedroom Villa | 250-300 | 900-1,400 |
| 4-Bedroom Villa | 350-500 | 1,200-1,800 |
| 5-Bedroom Villa | 500-846 | 1,500-2,000+ |
These prices reflect prime locations within Muscat, including International Transformation Centers and desirable residential neighborhoods. Suburban areas and secondary cities offer 20-40% lower rates for comparable properties.
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Who are the typical renter profiles in Oman—expats, locals, families, professionals?
Expatriates dominate the rental market in Muscat's International Transformation Centers and city center, primarily consisting of business professionals, embassy staff, and international organization employees.
These expatriate renters typically seek furnished apartments or villas with modern amenities, proximity to international schools, and easy access to business districts. They often accept higher rental rates in exchange for convenience, security, and community amenities that cater to international lifestyles.
Omani nationals generally prefer larger properties, particularly villas and townhouses in suburban settings that accommodate extended families and traditional social patterns. Local renters often prioritize value over location premium, driving demand in developing neighborhoods and secondary cities.
Young professionals and university students concentrate in studio and shared accommodation options, particularly near universities in Muscat and Nizwa. Families with children, both expatriate and local, target two to three-bedroom apartments and villas in areas with quality schools and family amenities.
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What are the current vacancy rates in different cities and property types?
Oman maintains an overall occupancy rate of approximately 85%, indicating a 15% vacancy rate across all residential property types as of September 2025.
Villas and traditional Arabic houses perform strongest with 87.5% occupancy rates, reflecting sustained demand from local families and expatriate professionals seeking larger living spaces. This high occupancy rate indicates limited available villa inventory in desirable areas, supporting stable rental prices.
Apartment occupancy rates currently sit at 80.8% but show improving trends throughout 2025. The apartment market recovery from pandemic lows continues, with new expatriate arrivals and young professionals driving increased demand for smaller units in urban areas.
Geographic variations exist within these averages. Muscat experiences tighter markets with lower vacancy rates, particularly in International Transformation Centers and premium neighborhoods. Secondary cities like Salalah and Sohar show higher vacancy rates but also lower rental expectations, creating opportunities for value-oriented investors.
What rental yields can owners expect today, and how do they break down by area and property type?
Muscat apartments currently deliver the highest rental yields in Oman, ranging from 6% to 9% annually, with prime city center properties achieving up to 8.5% returns.
These yields reflect the combination of stable rental demand and relatively affordable property purchase prices compared to other Gulf markets. International Transformation Centers offer yields between 5% and 8%, comparable to Dubai and Doha markets but with significantly lower entry costs for investors.
Villas and townhouses typically generate yields between 4% and 6%, with prime family-oriented areas reaching the upper end of this range. While absolute rental income from villas exceeds apartments, the higher purchase prices result in lower percentage yields for villa investments.
Secondary cities and suburban areas often provide competitive yields despite lower absolute rents, as property purchase prices decrease proportionally. Salalah and other regional centers can deliver yields matching or exceeding Muscat rates for investors willing to target local rather than expatriate tenant markets.
How have rents and yields changed compared to five years ago, one year ago, and what are the forecasts for one, five, and ten years?
Rental prices experienced significant declines from 2019 to 2022, falling 10-15% annually as pandemic effects and economic adjustments reduced demand across Oman's property market.
The market recovery began in 2023, with rents rising 5-7% annually through 2024 and accelerating to 17% increases for Muscat apartments in 2025 due to surging expatriate demand and limited new supply. This dramatic reversal reflects both economic recovery and pent-up demand from delayed relocations and business expansions.
Rental yields currently exceed levels from five years ago, benefiting from rent recovery while property purchase prices remained relatively stable during the market downturn. This yield expansion creates attractive opportunities for investors entering the market during the recovery phase.
Forecasts project continued rent appreciation of 3-7% annually over the next five years, driven by population growth, expatriate influx, and economic diversification efforts. Ten-year projections suggest stabilization around 3-5% annual growth as market supply adjusts to demand levels.
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How does the rental market in Oman compare with other big, similar cities in the region?
Oman offers the most affordable rental market among Gulf Cooperation Council countries, with Muscat apartment costs averaging OMR 1,528 per square meter compared to 20-40% higher rates in Dubai, Abu Dhabi, and Doha.
This affordability advantage extends to rental yields, where Muscat's 8.5% peak yields for prime apartments exceed or match regional competitors while requiring significantly lower initial investment capital. Dubai and Abu Dhabi typically offer yields between 6% and 9%, but entry costs often double or triple Omani requirements.
The expatriate rental market in Oman targets similar demographics to other Gulf cities but offers better value propositions for international professionals and families. Quality of life, education options, and amenities remain competitive while housing costs provide substantial savings compared to UAE and Qatar alternatives.
Regional economic diversification trends favor Oman's long-term rental market prospects. As the country develops tourism, logistics, and renewable energy sectors, rental demand should strengthen while maintaining cost advantages over established Gulf markets. This positioning supports both capital appreciation and yield sustainability for property investors.
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 rental market presents compelling opportunities for both investors and tenants, with yields reaching 8.5% in prime areas while maintaining affordability compared to regional alternatives.
The market's recovery from pandemic lows, combined with economic diversification efforts and expatriate influx, supports continued growth in both rental rates and property values through 2030.
Sources
- Fly Homes - Cost of Living in Oman
- Expat Focus - Oman Property Rental Prices
- Global Property Guide - Oman Price History
- Bayut Oman - Muscat Villas for Rent
- Properstar - Oman House Prices
- Deloitte - Oman VAT Guide Real Estate
- Trading Economics - Oman Lending Rates
- Gulf Business - Oman Real Estate 2030
- Gulf News - GCC Affordability 2025
- Numbeo - Oman Cost of Living