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Yes, the analysis of Muscat's property market is included in our pack
Property prices in Muscat are rising as we reach mid-2025, driven by strong foreign investment and economic growth under Vision 2040.
The average annual property appreciation rate is expected to hit 3-7% in 2025, with luxury waterfront properties and tech-equipped apartments leading the surge in areas like Al Mouj and Qurum.
If you want to go deeper, you can check our pack of documents related to the real estate market in Oman, based on reliable facts and data, not opinions or rumors.
Property prices in Muscat are experiencing steady growth in 2025, with annual appreciation rates of 3-7% expected throughout the year.
Prime areas like Al Mouj and Qurum are seeing the strongest price increases, driven by limited supply and high demand from expatriates and foreign investors.
| Metric | Current Value (2025) | Details |
|---|---|---|
| Average Price Growth | 3-7% annually | Expected appreciation rate for residential properties in 2025 |
| Average Property Price | $2,830 per sqm | For apartments; ranges from OMR 70,000-150,000+ for houses |
| Rental Yields | 6-9% (apartments) | City center properties achieving up to 8.51% yields |
| Foreign Investment Share | 70% of total investments | Major driver of market growth through September 2024 |
| Expatriate Population | 61.1% of residents | Growing expatriate community driving rental demand |
| Prime Areas | Al Mouj, Qurum, Muscat Bay | Experiencing fastest price growth and highest demand |
| Market Size | $4.78 billion | Expected residential market size with 9.19% CAGR to 2030 |
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.
What are the current average property prices in Muscat as of June 2025?
The average price for residential properties in Muscat has reached approximately $2,830 per square meter as of June 2025.
For houses, typical prices range from OMR 70,000 to OMR 150,000, with luxury and waterfront properties commanding significantly higher prices. The variation depends heavily on location, with city center properties commanding premium rates.
In central Muscat areas, apartment prices average around OMR 55.35 per square meter, while properties outside the center drop to about OMR 37.07 per square meter. However, these figures reflect the lower end of the market, as new developments and luxury properties fetch considerably higher prices.
Prime neighborhoods like Qurum, Al Khuwair, and Shatti Al Qurum represent the most expensive areas, while Ghala, Al Amerat, and Bausher offer more affordable options. It's something we develop in our Oman property pack.
The wide price range reflects Muscat's diverse property landscape, from affordable housing to ultra-luxury developments catering to high-net-worth individuals.
How much have property prices increased in Muscat over the past 12 months?
Property prices in Muscat have increased by 3% to 7% over the past 12 months, marking a significant recovery from the previous downturn period.
After experiencing a decline from 2015 to 2021, Muscat's property market began its recovery in 2023 and has continued strengthening through 2024 and into 2025. This growth is primarily driven by economic recovery, increased foreign investment, and government initiatives under Vision 2040.
The most significant increases have been observed in luxury waterfront properties and central Muscat areas. Al Mouj has seen rental values jump by 10% to 20%, while Qurum experienced increases of 5% to 15% over the past 18 months.
These price increases reflect strong demand from both local buyers and international investors, particularly from GCC countries. Foreign investment has contributed 70% of total real estate investments through September 2024, according to the Ministry of Housing and Urban Planning.
The upward trend is expected to continue through 2025, supported by ongoing economic diversification efforts and infrastructure improvements across the sultanate.
Which areas in Muscat are experiencing the fastest property price growth in 2025?
Al Mouj, Qurum, and Muscat Bay are experiencing the fastest property price growth in Muscat during 2025.
Al Mouj, also known as The Wave, leads with rental value increases of 10% to 20% over the past 18 months. This waterfront development attracts buyers seeking luxury amenities, marina access, and modern lifestyle facilities, driving exceptional demand.
Qurum has emerged as a vibrant neighborhood favored by young professionals and families, experiencing price growth of 5% to 15%. The area's blend of traditional Omani charm with modern amenities makes it particularly attractive to both locals and expatriates.
Urban renewal areas including Sultan Haitham City and Yiti are projected to see property values increase by approximately 3% annually due to smart city developments and sustainable infrastructure projects. These master-planned communities represent the future of Muscat's urban development.
Madinat Al Sultan Qaboos continues attracting expatriates with its upscale villas, while Ruwi benefits from its commercial significance, achieving rental yields of 7.82% in the city center.
What types of properties are seeing the highest price increases in Muscat?
Luxury waterfront properties, tech-equipped apartments, and family-sized villas are experiencing the highest price increases in Muscat's 2025 market.
Luxury waterfront villas and penthouses in developments like Al Mouj and Muscat Bay command the highest premiums due to their exclusive locations and premium amenities. These properties attract high-net-worth individuals and investors seeking prestigious addresses.
Tech-smart, energy-efficient apartments have become highly sought after, driven by remote work trends and sustainability preferences. These properties feature smart home technology, energy-saving systems, and appeal particularly to young professionals and tech workers.
Suburban family villas with outdoor spaces, proximity to international schools, and green areas are experiencing strong demand. Post-pandemic preferences for larger living spaces and outdoor amenities have made these properties particularly valuable.
Properties with sustainable features represent nearly 80% of new residential developments in 2025, reflecting the market's shift toward eco-friendly buildings aligned with the Greater Muscat Structure Plan 2040. These details are thoroughly covered in our Oman property pack.
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What are the current rental yields in Muscat as of June 2025?
Rental yields for apartments in Muscat range from 6% to 9% as of June 2025, depending on location and property type.
City center properties achieve the highest yields, reaching around 8.51% due to their proximity to commercial hubs and high rental demand. These areas benefit from strong occupancy rates and premium rental pricing.
Properties outside the city center typically offer yields around 6.94%, reflecting lower rental rates but also reduced property acquisition costs. Suburban apartments provide attractive yield opportunities for investors seeking stable returns.
Integrated Tourism Complexes (ITCs) deliver particularly strong performance, with gross rental yields ranging from 5% to 8%. These developments offer competitive returns similar to Dubai, Abu Dhabi, and Doha, while maintaining more accessible entry prices.
The rental market has tightened significantly, with vacancy rates decreasing by 5% in 2024. Strong demand from the growing expatriate population, which now comprises 61.1% of Muscat's residents, continues supporting healthy yield potential across different property segments.
How do current Muscat property prices compare to five years ago?
Current Muscat property prices in 2025 are approaching pre-2015 peak levels after recovering from a significant market correction that lasted from 2015 to 2021.
Five years ago in 2020, Muscat's property market was still experiencing the effects of a downturn that began in 2015, with prices having dropped approximately 30% from their peak. The market was in a stabilization phase before beginning its recovery in 2023.
The recovery has been steady rather than explosive, with prices now returning to growth patterns supported by fundamental economic improvements. The current upward trajectory differs from the previous cycle as it's based on sustainable economic diversification rather than oil-dependent growth.
While specific house price indices aren't published for Oman, available data suggests that apartment prices in central Muscat areas have regained much of their previous value, with luxury and waterfront properties performing particularly well.
The current market strength is supported by Vision 2040 initiatives, improved foreign ownership regulations, and genuine economic diversification, providing a more sustainable foundation than the pre-2015 period. This historical context is explained in detail in our Oman property pack.
What are the property price forecasts for Muscat through 2026 and beyond?
Property prices in Muscat are forecast to continue growing at 3% to 7% annually through 2026, with sustained growth expected through the end of the decade.
Short-term forecasts through 2025-2026 project continued price appreciation driven by limited supply in prime areas and strong demand from expatriates and foreign investors. Prime waterfront and luxury properties may exceed the average growth range due to their scarcity.
Medium-term projections through 2030 anticipate steady growth supported by Vision 2040 implementation, infrastructure investments, and economic diversification. The Omani population is projected to reach 7.7 million by 2040, creating sustained housing demand.
Long-term forecasts through 2040 suggest continued appreciation as urban renewal projects mature and smart city developments reach completion. Properties in urban renewal zones are projected to achieve approximately 3% annual growth consistently.
The residential real estate market is expected to grow at a compound annual growth rate (CAGR) of 9.19%, reaching $7.42 billion by 2030 from the current $4.78 billion in 2025, indicating robust long-term potential.
How is foreign investment affecting Muscat's property market in 2025?
Foreign investment is driving Muscat's property market growth, contributing 70% of total real estate investments through September 2024.
The value of real estate transactions surged 29.6% in 2024, reaching RO 3.38 billion compared to RO 2.61 billion in 2023, with foreign buyers playing a crucial role in this growth. Mortgage contracts experienced the most substantial increase, jumping 46.4% to RO 2.27 billion.
Recent legislative changes allowing 100% foreign ownership of certain properties have significantly boosted investor confidence. The Foreign Capital Investment Law (FCIL) and expanded usufruct rights under Resolution 357/2020 have made Oman more attractive to international investors.
GCC nationals represent a major segment of foreign buyers, particularly interested in luxury waterfront properties and ITCs. The introduction of long-term residency permits for property investors has further incentivized foreign participation.
New visa policies and eased foreign ownership regulations continue attracting expatriates and investors, with this trend expected to accelerate throughout 2025 as Vision 2040 initiatives gain momentum.
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.
Is demand for residential properties in Muscat rising or declining in 2025?
Demand for residential properties in Muscat is rising strongly in 2025, driven by multiple converging factors.
The expatriate population has increased by 33% between 2022 and 2023, now comprising 61.1% of Muscat's residents. This growth directly translates to increased housing demand, particularly in areas offering modern amenities and proximity to business districts.
Economic recovery and Vision 2040 initiatives are attracting businesses and creating employment opportunities, further boosting housing demand. The development of new commercial and retail spaces continues drawing workers to the capital.
Supply constraints in prime areas are intensifying demand pressure. Limited new high-quality developments in central locations like Al Mouj and Qurum are pushing buyers to compete for available properties, driving prices higher.
Government initiatives supporting affordable housing are addressing lower-income segments, while luxury developments cater to high-net-worth individuals and expatriate executives. The Ministry of Housing and Urban Planning allocated RO 70 million for housing assistance in 2024-2025, benefiting approximately 2,400 families.
How does Muscat compare to other GCC capitals for property investment in 2025?
Muscat offers more affordable entry points compared to Dubai, Doha, and Riyadh while delivering competitive rental yields and growth potential.
Property prices in Muscat average around $2,830 per square meter, significantly lower than Dubai's $5,000-6,000+ and Doha's $4,000-5,000 per square meter. This affordability makes Muscat attractive for investors seeking exposure to GCC real estate markets.
Rental yields in Muscat's ITCs range from 5% to 8%, closely mirroring those in Dubai, Abu Dhabi, and Doha. However, lower acquisition costs mean better yield-to-price ratios for investors.
Price growth in Muscat's prime areas is projected at 3-7% annually, while Dubai and Riyadh are experiencing 10-15% growth in prime locations. Muscat's more moderate growth offers stability and sustainable appreciation.
Muscat's emerging market status provides greater upside potential as economic diversification progresses. The city offers lower entry costs with stable returns, making it particularly attractive for long-term investors seeking portfolio diversification within the GCC region.
What factors could cause property prices to decline in Muscat?
Several risk factors could potentially cause property prices to decline in Muscat despite current positive trends.
Economic dependency on oil remains a vulnerability, despite diversification efforts under Vision 2040. Global oil price fluctuations could impact government spending on infrastructure projects and overall economic confidence.
Regulatory changes affecting foreign ownership or visa policies could reduce international investment demand. While current policies favor foreign investors, future policy shifts could impact market dynamics.
Oversupply scenarios in certain segments could pressure prices downward. Large-scale new developments might outpace demand, particularly if economic growth slows or expatriate population growth moderates.
Global or regional economic shocks, including geopolitical instability, could reduce investor confidence and demand. Currency fluctuations affecting expatriate purchasing power could also impact market dynamics.
Project delays in infrastructure or urban renewal initiatives could slow anticipated growth, while potential increases in property transaction taxes or fees could deter investment activity.
What are the current mortgage rates and financing options in Muscat for 2025?
Mortgage rates in Muscat range from 3% to 7% for 20-year terms as of 2025, with financing options varying significantly between residents and non-residents.
Omani banks including Bank Muscat, National Bank of Oman (NBO), and Bank Dhofar offer mortgages primarily to residents with valid work permits. These institutions require local employment and residency documentation for standard mortgage products.
For non-residents, financing options are more limited, with cash purchases being the most straightforward approach. Alternative financing includes loans from home country banks, private lenders, or establishing Omani companies to access local financing.
Foreign buyers can obtain mortgages through company formation in Oman, allowing the entity to seek financing from local banks provided it meets lending criteria. This approach, while complex, provides access to local rates and terms.
The mortgage market experienced substantial growth in 2024, with mortgage contract values surging 46.4% to RO 2.27 billion, indicating strong financing activity despite regulatory constraints for foreign buyers.
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.
Property prices in Muscat are definitively rising in 2025, with annual appreciation rates of 3-7% driven by strong foreign investment, economic diversification, and growing expatriate demand.
The market offers excellent opportunities for investors seeking GCC exposure at more affordable entry points than Dubai or Doha, while delivering competitive rental yields and sustainable long-term growth potential.
Sources
- 10 statistics for the Muscat real estate market in 2025
- Yes, property prices will rise in Muscat in 2025
- 13 strong trends for 2025 in the Oman property market
- 15 strong forecasts for real estate in Muscat in 2025
- Residential Real Estate Market in Oman - Industry Report
- Foreign investment drives Oman's real estate boom
- Oman set to deliver 62,800 residential units by 2030
- Rental Yields in Oman - Global Property Guide