Authored by the expert who managed and guided the team behind the Oman Property Pack
Everything you need to know before buying real estate is included in our Oman Property Pack
If you're thinking about investing in rental property in Oman, understanding how much income you can actually expect is the first step.
In this article, we break down the current rental yields across Oman, including which neighborhoods and property types perform best in early 2026.
We constantly update this blog post with the latest data on Oman's rental market, so you always have fresh numbers to work with.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Oman.
Insights
- Oman's average gross rental yield sits around 4.3% in early 2026, but choosing the right neighborhood can push that to 6.5% or higher in areas like Al Khuwair and parts of Seeb.
- The Muscat municipality rent fee of 3% of annual rent is a landlord cost that most investors overlook, and it directly cuts into your net yield in Oman.
- Vacancy rates in Muscat average around 10 to 15%, but prime communities like Al Mouj can run as low as 5 to 10% thanks to steady expat demand.
- Studios and one-bedroom apartments in Oman consistently deliver higher yields than larger villas because the tenant pool is much broader and turnover is faster.
- Oman's real estate price index jumped over 17% in Q3 2025, which has compressed yields in prime Muscat areas where prices rose faster than rents.
- In Al Mouj and Shatti Al Qurum, you might only see 2.5 to 4% gross yields, but investors accept this trade-off for faster re-letting and tenant quality.
- Sultan Haitham City near Al Seeb is one development project that could shift demand and rents in the surrounding areas over the next few years.
- Landlords in Oman who offer furnished units with utilities included need to budget an extra OMR 25 to 60 per month for apartments and up to OMR 140 for villas during summer.
What are the rental yields in Oman as of 2026?
What's the average gross rental yield in Oman as of 2026?
As of early 2026, the average gross rental yield in Oman for residential properties sits at around 4.3%, which means for every OMR 100,000 you invest, you can expect roughly OMR 4,300 in annual rent before expenses.
That said, most typical properties in Oman fall within a realistic range of 3.0% to 6.5% gross yield, depending heavily on whether you buy in a premium lifestyle community or a more practical commuter district.
Compared to other Gulf markets, Oman's yields are moderate, as prime Muscat tends to track closer to Dubai's compressed luxury yields, while secondary areas can match or beat some regional averages.
The single biggest factor influencing gross rental yields in Oman right now is the gap between price growth and rent growth, since property prices jumped over 17% in late 2025 while rents rose more slowly, squeezing yields in areas where buyers have bid prices up aggressively.
What's the average net rental yield in Oman as of 2026?
As of early 2026, the average net rental yield in Oman comes in at around 3.1%, which is what remains after you account for the recurring costs that landlords typically bear.
The difference between gross and net yields in Oman usually runs about 1.0 to 1.5 percentage points, which reflects the unavoidable friction costs of owning rental property in this market.
The expense that hits Oman landlords hardest is the Muscat municipality rent fee, which takes roughly 3% of your annual rent right off the top, and this is a cost that many foreign investors don't anticipate when they first run their numbers.
Most standard investment properties in Oman deliver net yields in the range of 2.0% to 5.0%, with the wide spread coming down to how well you manage vacancy, maintenance, and whether you're in a high-turnover or stable-tenant area.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Oman.
We made this infographic to show you how property prices in Oman compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Oman in 2026?
In Oman's rental market in 2026, a gross yield of 5.5% or higher is generally considered "good" by local investors, as this level gives you enough cushion to stay comfortably profitable after all the typical landlord costs.
The threshold that separates average-performing properties from high-performing ones in Oman is really about clearing 4.0% net yield, because at that level you're beating the drag from municipality fees, vacancy, and maintenance with room to spare.
How much do yields vary by neighborhood in Oman as of 2026?
As of early 2026, the spread between the highest-yield and lowest-yield neighborhoods in Oman is typically 2 to 3 percentage points, which is a significant gap that can make or break your investment returns.
The highest rental yields in Oman tend to come from practical, high-demand neighborhoods where prices haven't been bid up as aggressively, such as Al Khuwair, parts of Bawshar, Azaiba, Ghubrah, and value pockets in Seeb like Al Hail and Al Mawaleh.
On the other end, the lowest yields in Oman are found in premium lifestyle districts like Al Mouj, Shatti Al Qurum, Muscat Hills, and the prime parts of Qurum, where you're paying a hefty premium for prestige and amenities.
The main reason yields vary so much across Oman's neighborhoods is that purchase prices in lifestyle areas rise faster than rents, so even when absolute rents are high, the math works against yield-focused investors.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Oman.
How much do yields vary by property type in Oman as of 2026?
As of early 2026, gross rental yields across different property types in Oman range from roughly 2.5% for large villas to 6.5% or more for well-located studios and one-bedroom apartments.
The property type that currently delivers the highest average gross rental yield in Oman is the studio or one-bedroom apartment, because these units attract the widest tenant pool and command strong rent per square meter.
Large villas consistently deliver the lowest average gross rental yield in Oman, as their high purchase prices rarely get matched by proportionally higher rents, even in the most sought-after family neighborhoods.
The key reason yields differ so much between property types in Oman is simple supply and demand math: smaller units have more potential renters competing for them, while large villas only appeal to a narrow slice of the market.
By the way, you might want to read the following:
What's the typical vacancy rate in Oman as of 2026?
As of early 2026, the typical residential vacancy rate in Oman runs around 10% to 15% for standard rental stock, though this varies significantly based on location and property quality.
Across different neighborhoods in Oman, vacancy rates can range from as low as 5% in prime, well-managed communities like Al Mouj to as high as 18% or more in older buildings or oversupplied areas.
The main factor driving vacancy rates in Oman right now is the balance between new supply and expat hiring, since residential demand is heavily tied to employment growth in sectors that bring foreign workers to the country.
Oman's vacancy rates are roughly in line with regional Gulf averages, though Muscat's mid-80s occupancy level suggests the market isn't as tight as some of the more supply-constrained emirates.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Oman.
What's the rent-to-price ratio in Oman as of 2026?
As of early 2026, the average rent-to-price ratio in Oman sits at approximately 0.36% monthly (or about 4.3% annually), which means if you buy a property for OMR 100,000, you can expect around OMR 360 per month in rent.
A rent-to-price ratio above 0.45% monthly (roughly 5.5% annually) is generally considered favorable for buy-to-let investors in Oman, and this ratio is essentially just another way of expressing the gross rental yield.
Compared to other Gulf markets, Oman's rent-to-price ratio is moderate, sitting below some of the higher-yield secondary markets but above the compressed ratios you'd find in Dubai's ultra-prime districts.
We have made this infographic to give you a quick and clear snapshot of the property market in Oman. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Oman give the best yields as of 2026?
Where are the highest-yield areas in Oman as of 2026?
As of early 2026, the highest-yield neighborhoods in Oman include Al Khuwair, Azaiba and Ghubrah, and parts of Seeb such as Al Hail and Al Mawaleh, where practical location trumps lifestyle prestige.
In these top-performing areas, investors can typically expect gross rental yields in the range of 5.5% to 7.0%, which is significantly above the Oman average.
What these high-yield areas in Oman share is strong, broad renter demand combined with purchase prices that haven't been inflated by lifestyle branding, so the rent-to-price math works in your favor.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Oman.
Where are the lowest-yield areas in Oman as of 2026?
As of early 2026, the lowest-yield neighborhoods in Oman are the premium lifestyle districts of Al Mouj, Shatti Al Qurum, and Muscat Hills, where prestige comes at a price that rents simply can't match.
In these low-yield areas, gross rental yields typically range from just 2.5% to 4.0%, which can feel thin once you factor in all the landlord costs.
The main reason yields are compressed in these Oman neighborhoods is that buyers pay significant premiums for amenities, expat preference, and resale liquidity, pushing prices up faster than rents can follow.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Oman.
Which areas have the lowest vacancy in Oman as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Oman are Al Mouj, Qurum and Shatti Al Qurum, and Madinat Sultan Qaboos (MSQ), where strong expat preference keeps units filled.
In these low-vacancy areas of Oman, vacancy rates typically run between 5% and 10%, meaning your property is likely to stay occupied most of the year.
The main demand driver keeping vacancy low in these Oman neighborhoods is consistent expat employment and the concentration of amenities, international schools, and lifestyle features that this tenant base prioritizes.
The trade-off investors face when targeting these low-vacancy areas in Oman is that you're accepting lower yields in exchange for stability, faster re-letting, and generally higher-quality tenants.
Which areas have the most renter demand in Oman right now?
The neighborhoods currently experiencing the strongest renter demand in Oman include Al Mouj and Muscat Hills for lifestyle seekers, MSQ and Azaiba for family convenience, and parts of Seeb for value-conscious tenants.
The renter profile driving most of this demand is expat professionals and their families, typically employed in oil and gas, government-linked sectors, or multinationals with Muscat operations.
In these high-demand Oman neighborhoods, well-priced rental listings typically get filled within two to four weeks, and prime properties in top condition can go even faster.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Oman.
Which upcoming projects could boost rents and rental yields in Oman as of 2026?
As of early 2026, the top upcoming projects expected to influence rents in Oman include Sultan Haitham City near Al Seeb, various MoHUP-listed residential developments, and infrastructure improvements connecting Muscat's growth corridors.
The neighborhoods most likely to benefit from these projects include parts of Seeb (especially Al Hail and Al Mawaleh), areas near the new city developments, and districts that gain improved road or transit access.
Once these projects are completed, investors might realistically expect rent increases in the range of 5% to 15% in nearby areas, though the exact impact will depend on whether the projects create more jobs and amenities or simply add competing supply.
You'll find our latest property market analysis about Oman here.
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What property type should I buy for renting in Oman as of 2026?
Between studios and larger units in Oman, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments in Oman generally outperform larger units in terms of both rental yield and occupancy, making them the safer bet for most investors.
Studios in good Muscat locations typically deliver gross yields of 5% to 6.5% (roughly OMR 3,000 to 4,500 or USD 7,800 to 11,700 or EUR 7,200 to 10,800 annually), while larger three or four-bedroom units often sit in the 3% to 4.5% range.
The main factor explaining this difference is tenant pool size, as studios and one-beds attract young professionals, couples, and singles, which is a much larger group than the families who need big villas.
That said, larger units can be the better investment choice in Oman if you're targeting family compounds near international schools, where stable, long-term tenants reduce turnover costs and vacancy risk.
What property types are in most demand in Oman as of 2026?
As of early 2026, the most in-demand property type in Oman is the two-bedroom apartment, which hits the sweet spot of affordability and flexibility for both families and roommate arrangements.
The top three property types ranked by current tenant demand in Oman are two-bedroom apartments, one-bedroom apartments, and townhouses or duplexes inside managed communities.
The primary trend driving this demand pattern in Oman is the expat workforce composition, where most tenants are professionals or small families who need practical, well-located housing rather than sprawling estates.
Large standalone villas are currently underperforming in demand and likely to remain so, as the narrow tenant pool and high price points make them harder to lease quickly in Oman's current market.
What unit size has the best yield per m² in Oman as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Oman is typically 40 to 80 square meters, which covers studios and compact one or two-bedroom apartments.
For this optimal unit size in Oman, you can expect gross rental yields per square meter of roughly OMR 50 to 75 annually (approximately USD 130 to 195 or EUR 120 to 180 per sqm per year).
Smaller studios can sometimes suffer from limited tenant appeal in certain areas, while larger units see their rent-per-sqm drop because tenants won't pay proportionally more for extra space they may not need.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Oman.
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 costs cut my net yield in Oman as of 2026?
What are typical property taxes and recurring local fees in Oman as of 2026?
As of early 2026, there is no annual property tax for individual landlords in Oman, but the main recurring cost is the Muscat municipality rent fee of 3% of your annual rent contract value (for example, OMR 180 or USD 470 or EUR 430 on a OMR 6,000 annual rent).
Other recurring local fees landlords in Oman should budget for include potential community service charges in managed developments, which can run from OMR 500 to 2,000 per year (USD 1,300 to 5,200 or EUR 1,200 to 4,800) depending on the amenities.
Combined, these fees typically represent around 3% to 8% of gross rental income in Oman, with the lower end applying to simple apartments and the higher end to amenity-heavy communities.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Oman.
What insurance, maintenance, and annual repair costs should landlords budget in Oman right now?
For a typical rental property in Oman, annual landlord insurance costs around OMR 150 to 400 (approximately USD 390 to 1,040 or EUR 360 to 960), depending on property value and coverage level.
Landlords in Oman should budget roughly 0.5% to 1.5% of property value annually for maintenance and repairs, which works out to OMR 500 to 1,500 per year (USD 1,300 to 3,900 or EUR 1,200 to 3,600) on a typical OMR 100,000 property.
The repair expense that most commonly catches landlords off guard in Oman is air conditioning system failures, since the heavy summer usage in Muscat's climate leads to frequent compressor replacements and servicing costs.
All told, landlords in Oman should realistically budget OMR 650 to 1,900 per year (USD 1,690 to 4,940 or EUR 1,560 to 4,560) for the combined cost of insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Oman right now?
In Oman, tenants typically pay their own metered utilities (electricity and water) on standard one-year leases, but landlords often cover utilities when offering fully furnished units marketed as "bills included."
If you do include utilities as a landlord in Oman, expect to pay roughly OMR 25 to 60 per month (USD 65 to 155 or EUR 60 to 145) for an apartment, and OMR 60 to 140 per month (USD 155 to 365 or EUR 145 to 335) for a villa, with summer air conditioning driving the higher end.
What does full-service property management cost, including leasing, in Oman as of 2026?
As of early 2026, full-service property management in Oman typically costs between 6% and 10% of annual rent, which means OMR 360 to 600 per year (USD 935 to 1,560 or EUR 865 to 1,440) on a OMR 6,000 annual rent.
On top of ongoing management, leasing or tenant-placement fees in Oman are commonly charged as the equivalent of one month's rent (roughly OMR 500 or USD 1,300 or EUR 1,200 for a typical apartment) each time you need to find a new tenant.
What's a realistic vacancy buffer in Oman as of 2026?
As of early 2026, landlords in Oman should set aside roughly 10% to 15% of annual rental income as a vacancy buffer, which accounts for the typical re-letting gaps you'll encounter.
In practical terms, this translates to about five to eight vacant weeks per year for standard properties in Oman, though prime assets in high-demand areas may only see two to four weeks of vacancy.
Buying real estate in Oman can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Oman, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NCSI Data Portal (CPI Dataset) | This is Oman's official statistics body, publishing the CPI series used across government and markets. | We used it to understand how rents are measured systematically in Oman. We cross-checked that official data backs up the rent direction we cite. |
| NCSI Official Website | This is the primary source for official statistical releases in Oman. | We used it as the authoritative home base for Oman's national statistics. We validated that our market indicators are rooted in official releases. |
| Oman Observer | This is a major national newspaper that explicitly attributes figures to NCSI. | We used it to triangulate the direction and magnitude of residential price growth. We cross-checked against other outlets reporting the same NCSI release. |
| Muscat Daily | This is a widely read national outlet that directly references official index data. | We used it to confirm the late-2025 acceleration in Oman's real estate price index. We used it as a triangulation point for prices vs rents when updating yields. |
| Savills Research (Q3 2025) | Savills is a global real estate consultancy with transparent research and recurring market reports. | We used it to corroborate the direction of rent movements and the prime vs non-prime pattern in Muscat. We sanity-checked our neighborhood-level yield logic. |
| Savills Research PDF (Q3 2025) | This is the underlying research PDF from a top-tier consultancy. | We used it to validate specific rent levels and short-term rent changes in prime Muscat submarkets. We cross-checked Hamptons' rent ranges with this source. |
| Hamptons Oman Investment Guide | Hamptons is an established real estate brokerage and research player locally, publishing a structured market guide. | We used it to anchor typical prime-submarket rents in Al Mouj, Qurum, and Muscat Hills. We itemized Oman-specific landlord costs like the municipality rent fee. |
| Global Property Guide | This is a long-running international property data publisher with stated definitions and consistent methodology. | We used it as a hard numeric starting point for Muscat gross yields. We translated rent and price changes since 2022 into our early 2026 yield estimate. |
| Central Bank of Oman Annual Report | This is the central bank, producing the country's core macro and financial-sector reporting. | We used it to ground the macro context that supports housing demand. We used it as an official check so our article doesn't rely only on private commentary. |
| Central Bank of Oman Financial Stability Report 2024 | This is the central bank's flagship stability publication, relevant for mortgage and credit risk conditions. | We used it to triangulate that Oman's banking system remains resilient. We used it as a macro risk lens for how yields can move with credit cycles. |
| Ministry of Housing and Urban Planning | This is the government ministry responsible for housing, urban planning, and real estate sector services. | We used it to identify major official residential projects and new-city development areas. We supported the upcoming projects section with government-backed examples. |
| Muscat Municipality | This is the municipal authority page showing the fee formula used in practice. | We used it to confirm the exact 3% rent-fee calculation logic. We used it directly in the net-yield cost stack. |
| Authority for Public Services Regulation (APSR) | APSR is the sector regulator, and this is the official tariff publication point. | We used it to anchor electricity tariff slabs that matter when landlords include utilities. We prevented made-up utility cost estimates by using official data. |
| Nama Supply Residential Tariff 2025 | This is an official utility document showing the applied residential tariff structure. | We used it to translate regulator policy into actual slab numbers used in billing. We built a realistic utilities budget range for furnished leases. |
| Nama Dhofar Services Water Tariff | This is the official utility tariff page for Dhofar governorate. | We used it to anchor residential water tariff levels for Salalah and Dhofar budgeting. We used it as a practical input for utilities estimates outside Muscat. |
| IMF Article IV Staff Report | This is an international organization's country report used by policymakers and investors. | We used it to triangulate the macro backdrop that influences expat hiring and household demand. We kept our narrative consistent with big picture fundamentals. |
| Cavendish Maxwell | This is a respected regional real estate consultancy with detailed market reporting. | We used their Muscat apartment occupancy data to anchor our vacancy estimates. We cross-checked supply and demand dynamics with their market outlook. |
| Savills Oman Property Management | Savills is a global real estate services firm with established local operations. | We used it to confirm that property management is a mature, available service in Oman. We validated that professional management pricing is in the expected range. |
| PeachHaus Property Management Fees Guide | This is an industry resource explaining how property management fees are typically structured. | We used it to set realistic fee ranges for full-service property management in Oman. We validated the percentage-of-rent pricing model against industry norms. |
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