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Everything you need to know before buying real estate is included in our Oman Property Pack
Property prices in Oman now range from OMR 48,000 for basic apartments in Special Economic Zones to over OMR 400,000 for luxury villas in premium Integrated Tourism Complexes.
The Omani property market has stabilized after years of decline, with Integrated Tourism Complexes in Muscat showing 3-7% price growth in 2025, making it an attractive time for both investors and end-users to enter the market.
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.
Oman property prices in 2025 range from OMR 48,000 for SEZ apartments to OMR 400,000+ for premium ITC villas, with all-in costs adding 3-7% to purchase price.
Foreign buyers can only purchase freehold property in designated Integrated Tourism Complexes and Special Economic Zones, with net rental yields of 3-5% in mature areas and financing available at 5-7% interest rates.
| Property Type | Location | Price Range (OMR) | Price Range (USD) | Rental Yield |
|---|---|---|---|---|
| 1-bed Apartment | Duqm SEZ | 45,000 - 60,000 | $117,000 - $156,000 | 5-7% |
| 2-bed Apartment | Al Mouj ITC | 75,000 - 120,000 | $195,000 - $312,000 | 3-5% |
| 3-bed Villa | Muscat Bay ITC | 180,000 - 300,000 | $468,000 - $780,000 | 3-4% |
| Luxury Villa | Jebel Sifah ITC | 300,000 - 500,000+ | $780,000 - $1,300,000+ | 2-4% |
| Serviced Apartment | Various ITCs | 65,000 - 150,000 | $169,000 - $390,000 | 4-7% |
What's your goal for buying property in Oman and what timeline do you have?
Your investment goal determines everything from location choice to financing strategy in Oman's property market as of September 2025.
For own-occupancy, you need immediate livability with access to international schools, healthcare, and business districts. Muscat's Integrated Tourism Complexes like Al Mouj and Muscat Bay offer the best infrastructure for expats, with completion timelines of 3-6 months for ready properties or 12-24 months for off-plan units.
Long-term rental investment works best in established expat areas where you can achieve 3-5% net yields. These properties require 6-12 months to establish steady rental income, with Al Mouj apartments showing the most consistent demand from corporate tenants on 1-2 year contracts.
Short-term rental strategy targets tourism zones like Jebel Sifah or beachfront properties, potentially yielding 5-7% but requiring active management and seasonal vacancy planning. The tourism recovery post-2024 has strengthened this segment, but you need 12-18 months to build consistent booking patterns.
Buy-to-resell requires careful timing in Oman's slower secondary market, with typical holding periods of 3-5 years to capture meaningful capital appreciation. Current price momentum of 3-7% annually in premium ITCs suggests patient investors entering now could see 15-25% total returns by 2028-2030.
Which cities and neighborhoods in Oman should you target and why?
Foreign buyers in Oman must focus on designated Integrated Tourism Complexes and Special Economic Zones where freehold ownership is legally permitted.
Muscat's ITCs dominate the premium segment with Al Mouj leading for established infrastructure, international schools, and marina lifestyle. Properties here range from OMR 75,000-300,000 for apartments and OMR 180,000-500,000+ for villas. Muscat Bay offers newer developments with golf course access, while Jebel Sifah provides the most exclusive beachfront options at premium prices.
Duqm Special Economic Zone has emerged as the value play since legal reforms in June 2025, with apartments starting from OMR 45,000-80,000. The industrial development and port expansion make it attractive for capital appreciation, though rental markets remain limited. Salalah Free Zone offers tourism-focused opportunities in the south, benefiting from the khareef season but with less liquidity than Muscat.
These areas are your only legal options as a foreign buyer for freehold ownership. Traditional Omani neighborhoods outside ITCs/SEZs only offer usufruct rights (long-term leases up to 99 years), which limits financing options and resale value. The concentration of expat amenities, international standard construction, and established property management services makes ITCs the practical choice despite higher entry costs.
What property type fits your needs - apartments, villas, or land?
Property type selection in Oman depends on your budget, intended use, and risk tolerance, with each category offering distinct advantages.
Apartments in ITCs range from 60-200 mĀ² built-up area, priced OMR 65,000-150,000 for 1-3 bedroom units. They offer the lowest maintenance burden, shared amenities like pools and gyms, and strongest rental demand from corporate expats. Sea-facing units in Al Mouj command OMR 800-1,200 per mĀ², while inland units trade at OMR 600-900 per mĀ².
Villas provide 250-500 mĀ² built area with 300-800 mĀ² plots, starting from OMR 180,000 in newer ITCs up to OMR 500,000+ for waterfront properties. They appeal to families requiring privacy and space but carry higher maintenance costs and slower rental turnover. Golf-front villas in Muscat Bay achieve premium pricing but require longer marketing periods for resale.
Serviced apartments in mixed-use developments offer turnkey rental operations with yields of 4-7%, managed by hotel operators. These units typically cost OMR 65,000-120,000 and suit passive investors seeking hands-off rental income.
Developed land plots are rarely available for direct foreign purchase, limited to specific villa plot sales within ITC master plans. Off-plan properties offer payment plans but carry construction and delivery risks, while ready stock provides immediate occupancy but limited price negotiation.
It's something we develop in our Oman property pack.
What size and specifications do you need for your Oman property?
Property specifications in Oman's ITCs follow international standards with specific sizing norms that affect both pricing and rental potential.
| Property Type | Typical Size Range | Standard Features | Premium Add-ons | Price Impact |
|---|---|---|---|---|
| 1-Bed Apartment | 60-90 mĀ² | 1 parking, balcony, gym access | Sea view, pool access, concierge | +20-40% for premium views |
| 2-Bed Apartment | 90-140 mĀ² | 2 parking, storage, shared pool | Marina access, golf view, smart home | +30-50% for waterfront units |
| 3-Bed Apartment | 140-200 mĀ² | 2-3 parking, maid's room, terraces | Private pool, roof terrace, high floor | +40-60% for penthouse level |
| Villa (3-bed) | 250-350 mĀ² built | Private garden, 2-3 parking, pool | Beach access, golf front, smart systems | +50-100% for prime locations |
| Villa (4-5 bed) | 350-500+ mĀ² built | Large garden, multiple parking, pool | Private beach, staff quarters, elevators | +100-200% for ultra-prime |
What's your total budget including all fees and costs?
Your true property budget in Oman must account for purchase price plus 3-7% in additional costs that many buyers underestimate.
The property purchase price forms the base, with apartments in ITCs ranging OMR 65,000-150,000 and villas OMR 180,000-500,000+. However, mandatory additional costs significantly impact your total outlay.
Government registration fees are 3% of property value for all foreign buyers in ITCs and SEZs, non-negotiable and payable at transfer. Legal fees add 0.75-1% for due diligence, title verification, and transaction completion. If financing, mortgage arrangement fees cost approximately 1.5% of the loan amount plus processing charges of OMR 500-1,500.
Real estate agent commissions typically run 2% when not buying directly from developers, though this may be negotiable in competitive situations. Property inspection and valuation costs add OMR 300-800 depending on property size and complexity.
Furnishing represents a significant but variable expense, ranging from OMR 8,000-15,000 for basic apartment setups to OMR 20,000-50,000+ for luxury villa furnishing to international standards. Many ITC properties come partially furnished, which can reduce this burden.
Working capital for first year's service charges, insurance, and connection fees typically requires OMR 2,000-5,000 depending on property size and amenities. Your realistic budget ceiling should therefore be property price multiplied by 1.05-1.07 for all-in costs.
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How will you finance your Oman property purchase?
Financing options in Oman vary significantly between cash buyers and those requiring mortgages, with foreign buyer restrictions affecting terms and rates.
Cash purchases offer the strongest negotiating position and fastest completion, typically taking 30-45 days from agreement to title transfer. Developers often provide discounts of 2-5% for cash buyers, and you avoid all financing costs and bank approval delays.
Mortgage financing for foreigners in ITCs is available but requires careful planning. Loan-to-value ratios are capped at 70% for expat residents, dropping to 60% for non-residents. Down payments of 30-40% are mandatory, with some banks requiring 50% for non-resident borrowers.
Interest rates for foreign buyers currently range 5.5-7.5% annually, typically 1-2% higher than rates offered to Omani nationals. Mortgage tenors extend up to 25 years for residents but may be shortened to 15-20 years for non-residents or older borrowers.
Eligibility constraints include minimum salary requirements of OMR 1,500-2,500 monthly, debt-service ratios not exceeding 50% of income, and employment stability requirements. Some banks mandate Omani co-borrowers or require salary transfers to their institution.
Pre-approval is essential before property hunting, as it clarifies your actual buying power and speeds completion. Processing times typically require 6-8 weeks from application to approval, with extensive documentation including salary certificates, bank statements, and property valuations.
What are the taxes and government charges you need to budget for?
Oman's property tax structure is relatively straightforward but includes both one-time and ongoing charges that impact your investment returns.
The primary one-time cost is the government registration fee of 3% on the property purchase price, payable at the time of title transfer for all foreign buyers in ITCs and SEZs. This fee is non-negotiable and calculated on the full transaction value.
Oman notably has no annual property tax, unlike many regional markets, which reduces ongoing ownership costs significantly. This absence of recurring taxation makes long-term holding more attractive compared to countries with substantial annual property taxes.
Municipal fees vary by location and property type, typically ranging OMR 0.6-1.5 per mĀ² monthly for apartments, with villas incurring higher charges. These fees cover waste management, common area maintenance, and local municipal services.
Service charges in ITCs cover shared amenities like pools, gyms, security, and landscaping, typically costing OMR 300-1,000 annually depending on property size and facility standards. Premium developments with extensive amenities command higher service charges.
Property insurance is advisable though not legally mandated, costing OMR 200-600 annually based on property value and coverage. VAT at 5% applies to certain services including legal fees, agency commissions, and some maintenance services, but not to the property purchase itself.
Utility connections require deposits of OMR 100-300 per service (electricity, water, internet), refundable upon disconnection. These charges are minimal but necessary for property activation.
What are current property prices per square meter in your target areas?
Property pricing in Oman's investment zones shows clear differentiation based on location, views, and development maturity as of September 2025.
Al Mouj Marina apartments trade at OMR 700-1,200 per mĀ² built-up area, with sea-facing units commanding premium pricing. A recent example includes a 110 mĀ² two-bedroom apartment selling for OMR 85,000 (OMR 773 per mĀ²) in Q2 2025, representing the market average for non-premium units.
Muscat Bay properties achieve OMR 600-1,000 per mĀ² for apartments and OMR 550-800 per mĀ² for villas when calculated on built-up area. A 290 mĀ² three-bedroom golf-front villa sold for OMR 210,000 in Q1 2025, reflecting OMR 724 per mĀ² for premium villa stock.
Duqm SEZ represents the value segment with apartments priced OMR 400-650 per mĀ², appealing to investors seeking entry-level exposure. A typical 70 mĀ² one-bedroom unit trades around OMR 48,000, achieving OMR 686 per mĀ² for newer expat-friendly developments.
Jebel Sifah commands the highest premiums with waterfront apartments exceeding OMR 1,000-1,500 per mĀ² and ultra-luxury villas reaching OMR 800-1,200 per mĀ² built. These represent the top tier of Oman's residential market with limited comparable sales.
Price variations within developments can be substantial, with factors like floor level, view orientation, and proximity to amenities creating 20-50% price differentials between similar-sized units. Ground floor apartments trade at discounts while high-floor sea-view units command significant premiums.
Which properties offer the best livability for your budget?
Livability in Oman depends on balancing location convenience, build quality, and amenity access within your budget constraints.
Al Mouj Marina offers the best overall livability package for families, with established international schools within 10 minutes, quality healthcare facilities, and business district connectivity. The infrastructure is mature with reliable utilities, waste management, and high-speed internet. Properties here cost OMR 75,000-200,000 for suitable family accommodation.
Muscat Bay provides excellent livability for golf enthusiasts and those prioritizing recreational amenities, though school access requires longer commutes. The newer infrastructure offers modern building standards and smart home features, with family properties ranging OMR 120,000-300,000.
Trade-offs become apparent when stretching budgets - Duqm SEZ offers affordability from OMR 45,000-80,000 but lacks established expat services, international schools, and healthcare facilities. Commuting to Muscat for work or services adds significant time and costs.
Build quality varies considerably, with established ITCs offering international construction standards, earthquake-resistant design, and quality finishes. Newer or budget developments may compromise on materials, insulation, or long-term durability to achieve lower pricing.
Essential livability factors include reliable electricity and water supply, effective waste management, high-speed internet connectivity, and proximity to international standard healthcare. Climate control costs are significant in Oman's extreme weather, making energy-efficient buildings crucial for ongoing livability and utility costs.
It's something we develop in our Oman property pack.
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 realistic rental yields for your investment property?
Rental yields in Oman's property market vary significantly between property types, locations, and rental strategies, with established ITCs offering the most predictable returns.
Long-term rental yields in mature ITCs like Al Mouj typically achieve 3-5% net annually after all expenses. Two-bedroom apartments renting for OMR 400-600 monthly on properties valued OMR 85,000-120,000 demonstrate this range, with corporate tenants providing stable 12-24 month lease terms.
Short-term rental strategies in tourism-focused areas can achieve higher gross yields of 6-8%, but vacancy rates, seasonal fluctuations, and active management costs reduce net yields to similar levels as long-term rentals. Serviced apartments managed by hotel operators offer 4-7% net yields with professional management handling occupancy and maintenance.
Smaller units typically achieve higher yields per square meter - one-bedroom apartments in good locations often yield 5-7% compared to 3-4% for larger villas. However, villas may appreciate faster and attract premium long-term tenants willing to pay for space and privacy.
Vacancy periods average 1-3 months between tenancies in established areas, rising to 3-6 months in newer or remote developments. Seasonal demand patterns affect tourism-oriented properties, with peak winter months (November-March) generating higher rates but summer periods showing significant vacancy.
After accounting for service charges, maintenance, insurance, property management fees (typically 8-12% of rental income), and vacancy allowances, realistic net yields range 2.5-5% for most investment properties in Oman's legal foreign ownership zones.
What does the price momentum look like for resale potential?
Price momentum in Oman's property market has shifted positively after years of decline, though recovery remains gradual and location-dependent.
Five-year price changes show the market bottomed out between 2018-2021, with premium ITCs experiencing 25-35% declines from peak 2015 levels. However, stabilization began in 2022-2023, followed by modest recovery of 3-7% in 2025 for quality properties in established locations.
One-year price changes from 2024 to September 2025 show positive momentum across most ITC properties, with Al Mouj and Muscat Bay recording 3-7% appreciation. This recovery reflects improved economic conditions, tourism sector growth, and the impact of new foreign ownership regulations implemented in June 2025.
Inventory pipeline risk requires careful consideration - several large ITC developments are planned for completion in 2026-2027, potentially creating supply pressure. Duqm SEZ has significant planned supply that could impact pricing if absorption rates don't match delivery schedules.
Resale liquidity remains challenging compared to regional markets like Dubai or Abu Dhabi. Marketing periods for resale properties typically require 6-18 months, with buyers often negotiating 5-15% below asking prices. Premium unique properties may take longer but maintain pricing power better than standard units.
Exit timing is crucial given the cyclical nature of Oman's economy and property market. Current entry points appear favorable for patient investors, but quick flips remain difficult due to transaction costs and limited buyer pools.
What's the long-term outlook for Oman property investment?
Oman's property market outlook reflects the country's Vision 2040 economic diversification plans and recent legal reforms supporting foreign investment.
One-year outlook remains positive with continued stabilization expected in premium ITCs, supported by improving tourism, gradual economic recovery, and the full implementation of enhanced foreign ownership rights. Price appreciation of 3-7% annually appears sustainable in established locations.
Five-year projections suggest moderate but consistent growth as Oman's economy diversifies away from oil dependency. Infrastructure investments in Duqm Port, Salalah tourism development, and renewable energy projects should support property demand. Cumulative returns of 20-35% over five years appear achievable in quality locations.
Ten-year horizon presents more significant upside potential if economic diversification succeeds. Oman's strategic location, political stability, and natural beauty position it well for sustained tourism growth and expatriate population increase. Properties purchased at current levels could see 50-100% total returns over a decade in prime locations.
Regional comparison shows Oman offering better value than Dubai or Abu Dhabi, with lower entry costs and similar rental yields. However, liquidity and price appreciation potential remain lower than these more established markets. Saudi Arabia's NEOM and Qatar's World Cup legacy projects provide regional competition for investment capital.
Key risks include oil price volatility affecting the broader economy, geopolitical tensions in the region, and the success of government diversification efforts. Climate change and extreme weather patterns could also impact long-term desirability of certain coastal areas.
It's something we develop in our Oman property pack.
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.
The Omani property market in September 2025 presents compelling opportunities for informed investors and end-users willing to focus on legal ownership zones.
With prices stabilized after years of decline and new foreign ownership regulations enhancing accessibility, current entry points appear favorable for patient investors seeking stable returns in a politically stable Gulf nation.
Sources
- LinkedIn - Oman Property Market Liberalization
- Tamimi & Company - Foreign Ownership of Real Estate in Oman
- Sands of Wealth - Moving to Oman and Buying Property
- Sands of Wealth - Muscat Property Guide
- Oman Property Investment - Costs of Buying Property
- Lexis Middle East - Oman Real Estate Fees
- MK Muscat - Foreign Ownership Guide
- Nomad Capitalist - Oman Real Estate