Buying real estate in Muscat?

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Will real estate prices in Muscat go up in 2025?

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Yes, the analysis of Muscat's property market is included in our pack

Thinking about buying a 3-bedroom apartment in Bratislava? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?

And what about long-term investment—should you look into other regions like Košice or Žilina where property values might appreciate more over time?

In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Slovakia Property Pack.

Will property prices increase in Muscat in 2025?

Yes, property prices in Muscat are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.

Backed by our fresh, in-depth market analysis, we’re confident that Muscat is becoming an attractive destination for both local and international investors.

While there are challenges such as inflation and potential regulatory changes, the main drivers behind Muscat’s price growth remain strong.

The demand for residential and commercial properties is increasing, supported by government initiatives to diversify the economy and improve infrastructure.

Signals pointing to a property price increase in Muscat

Here are some factors suggesting prices could increase:

The Omani government's Vision 2040 plan aims to diversify the economy and reduce dependency on oil, which includes significant investments in infrastructure and tourism. These developments are expected to boost property demand in Muscat.

Foreign investment in Muscat's real estate market is on the rise, particularly from investors in the GCC region, attracted by the city's strategic location and stable political environment.

The introduction of new visa policies, such as long-term residency permits for investors, is expected to attract more expatriates and foreign investors, increasing demand for residential properties.

Muscat is experiencing a growing trend of urbanization, with more people moving to the city for employment opportunities, which is likely to increase demand for housing.

The development of new commercial and retail spaces in Muscat is expected to attract businesses and create jobs, further boosting the demand for both residential and commercial properties.

The government's focus on improving public transportation and connectivity within Muscat is likely to enhance the attractiveness of certain areas, leading to increased property values.

The stabilization of oil prices is expected to positively impact the Omani economy, leading to increased consumer confidence and spending, including in the real estate sector.

Signals pointing to a property price decrease in Muscat

Here are some factors suggesting prices could fall:

Rising inflation and living costs could impact the purchasing power of potential buyers, particularly in the middle-income segment, leading to reduced demand for properties.

Potential regulatory changes or increased taxes on property transactions could deter investment and slow down the real estate market.

An oversupply of new residential developments in certain areas of Muscat could lead to increased competition among sellers, potentially driving down prices.

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If property prices go up in Muscat, how much would they increase by?

If real estate prices in Muscat were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.

Typically, real estate in emerging markets like Muscat appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.

It means that, if you spot a charming 2-bedroom apartment in Al Mouj for 100,000 OMR today, don't be surprised if it's priced between 103,000 and 107,000 OMR this time next year.

To give you a better understanding, here is a table that shows 7 types of Muscat real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.

Type of Property Average Price in 2024 (OMR) Price in 2025 (3% increase) Price in 2025 (5% increase) Price in 2025 (7% increase)
Apartment (60 sqm / 646 sqft) OMR 90,000 OMR 92,700 OMR 94,500 OMR 96,300
Modern Villa (150 sqm / 1,615 sqft) OMR 250,000 OMR 257,500 OMR 262,500 OMR 267,500
Luxury Penthouse (200 sqm / 2,153 sqft) OMR 500,000 OMR 515,000 OMR 525,000 OMR 535,000
Studio (40 sqm / 431 sqft) OMR 45,000 OMR 46,350 OMR 47,250 OMR 48,150
Loft (100 sqm / 1,076 sqft) OMR 160,000 OMR 164,800 OMR 168,000 OMR 171,200
Townhouse (200 sqm / 2,153 sqft) OMR 350,000 OMR 360,500 OMR 367,500 OMR 374,500
Investment Property (80 sqm / 861 sqft) OMR 75,000 OMR 77,250 OMR 78,750 OMR 80,250

Everything you need to know is included in our Property Pack for Muscat

If real estate prices go up in Muscat, which areas are likely to see the biggest increases?

Today, people who want to move to Muscat are looking for a blend of traditional Omani charm with modern amenities and vibrant social scenes, which Al Mouj delivers. Hence, we could see a price increase there in 2025.

Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Qurum has really taken off.

We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Muscat market.

Neighborhood Level of Increase Why
Al Mouj High Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand.
Qurum High Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Muscat.
Madinat Al Sultan Qaboos Medium-High Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher.
Ruwi Medium The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments.
Ghala Medium-High Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward.
Muttrah Medium Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value.
Seeb Medium-High With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors.
Al Khuwair High Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable.
Bausher Medium-High Its proximity to central Muscat, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space.
Al Amerat Medium Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable.
Shatti Al Qurum High As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values.
Old Muscat High Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location.

If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Muscat?

In 2025, Muscat real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.

  • Tech-Equipped and Energy-Efficient Apartments:

    Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.

  • Family-Sized Villas in Suburban Areas:

    With a growing demand for larger living spaces, especially among families, suburban areas near Muscat are seeing increased interest. Proximity to green spaces, international schools, and shopping centers is a major factor driving value.

  • Properties with Outdoor Spaces:

    Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Muscat, where the natural landscape is a key attraction, these features offer a much-needed escape and are likely to drive up property values.

  • Eco-Friendly Buildings with Low Carbon Footprints:

    Muscat's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.

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