Authored by the expert who managed and guided the team behind the Oman Property Pack
Yes, the analysis of Muscat's property market is included in our pack
Muscat's property market is experiencing a notable recovery in 2025, with prices expected to rise 3-7% after years of decline.
The Omani capital offers diverse real estate options from luxury waterfront villas to affordable apartments, with foreign ownership now permitted in designated areas called Integrated Tourism Complexes (ITCs). Growing expat population, government reforms, and new developments like Sultan Haitham City are reshaping the market dynamics.
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.
Buying property in Muscat in 2025 is worth it for long-term residents seeking stability or investors targeting 3-5% rental yields, especially in prime areas like Al Mouj.
The market offers moderate growth potential with no property taxes, but liquidity remains lower than mature markets like Dubai.
| Factor | Details | 2025 Outlook |
|---|---|---|
| Price Growth | Recovery after 30% drop (2015-2021) | 3-7% increase expected |
| Rental Yields | Net yields 3-5% for apartments | Rising, especially in Al Mouj (10-20% rent increases) |
| Foreign Ownership | Allowed in ITCs, minimum OMR 45,000 | OMR 250,000+ for residency |
| Popular Areas | Al Mouj, Muscat Bay, Jebel Sifah | Sultan Haitham City emerging |
| Transfer Costs | 3% property transfer fee | No property or capital gains tax |
| Market Drivers | 33% expat growth (2022-2023) | Vision 2040, tourism expansion |
| Best For | Long-term residents, steady returns | Not for quick flips or high yields |
What types of properties can you find in Muscat?
Muscat's property market offers three main types of real estate that cater to different buyer preferences and budgets.
Villas dominate the premium segment, particularly in integrated tourism complexes like Al Mouj and Muscat Hills, where they come with private pools, gardens, and appeal strongly to families and high-net-worth individuals. These properties typically start from OMR 200,000 and can exceed OMR 1 million in prime waterfront locations.
Apartments are increasingly popular across Muscat, ranging from budget studios starting at OMR 30,000 to luxury penthouses exceeding OMR 500,000. High-rise and mid-rise developments concentrate in ITCs such as Al Mouj, Muscat Bay, and the emerging Sultan Haitham City, offering modern amenities and often allowing foreign ownership.
Off-plan developments have surged in popularity, offering both villas and apartments at lower entry prices with flexible payment plans spread over construction periods. Buyers can often customize finishes and layouts, though they face risks including potential construction delays or project changes.
It's something we develop in our Oman property pack.
Should you rent or buy property in Muscat in 2025?
The decision between renting and buying in Muscat depends primarily on your planned length of stay and financial situation.
Renting suits expatriates who need flexibility or plan to stay less than 3 years, with one-bedroom apartments costing OMR 200-500 monthly and three-bedroom units ranging from OMR 325-800 depending on location and amenities. Renting requires minimal upfront costs and no maintenance responsibilities, making it ideal for those testing the waters in Muscat.
Buying becomes attractive for those planning to stay long-term, seeking investment returns, or wanting residency benefits. Foreign buyers can purchase in ITCs with a minimum investment of OMR 45,000, though residency-linked purchases require OMR 250,000 or more. With property values expected to rise 3-7% in 2025 and no property taxes, buying offers both stability and investment potential.
| Factor | Renting | Buying |
|---|---|---|
| Upfront Cost | 1-2 months deposit + rent | 20-30% down payment + 3% transfer fee |
| Monthly Cost | OMR 200-800 (varies by size) | Mortgage + maintenance + utilities |
| Flexibility | High - easy to relocate | Low - selling takes time |
| Investment Return | None | 3-7% annual appreciation + rental income |
| Residency Option | No | Yes (with OMR 250,000+ investment) |
| Maintenance | Landlord's responsibility | Owner's responsibility |
| Best For | Short-term expats, uncertain stay | Long-term residents, investors |
How have property prices changed in Muscat and what's the 2025 outlook?
Muscat's property market has turned a corner after years of decline, showing clear signs of recovery as we reach mid-2025.
After experiencing a steep 30% price drop between 2015 and 2021, the market stabilized in 2023 and began recovering, driven by a 33% increase in expatriate population and renewed economic growth. Central Muscat areas like Al Mouj have seen particularly strong performance, with rental rates jumping 10-20% over the past 18 months.
Property prices in Muscat are expected to rise 3-7% throughout 2025, supported by government initiatives under Vision 2040, major infrastructure projects, and increasing foreign investment. The moderate growth projection reflects a healthy, sustainable recovery rather than speculative bubbles seen in other regional markets.
Rental yields have also improved significantly, with net yields for apartments now ranging from 3-5% after costs, making Muscat increasingly attractive for buy-to-let investors. Prime waterfront properties and well-located apartments in ITCs are seeing the strongest demand and price appreciation.
What key trends are shaping Muscat's real estate market in 2025?
Several powerful trends are transforming Muscat's property landscape as of June 2025.
The expatriate population surge of 33% between 2022-2023 continues to fuel rental demand, particularly for affordable and mid-market housing in areas like Al Khuwair and Al Seeb. This demographic shift has created a landlord's market in many neighborhoods, with quality properties often receiving multiple rental offers.
Government reforms have dramatically improved foreign investor access, including eased ownership laws, tax incentives, and long-term residency visas for property investors. These changes have attracted buyers from India, Pakistan, the UK, and other GCC countries seeking stable investment alternatives.
Urban expansion projects like Sultan Haitham City represent Oman's push toward smart, sustainable development, incorporating eco-friendly designs and tech-enabled infrastructure. These master-planned communities are attracting younger buyers and investors looking for modern living standards.
Luxury waterfront properties remain the strongest market segment, with developments in Al Mouj and Muscat Bay commanding premium prices and showing the highest appreciation rates. High-net-worth individuals from across the region are increasingly viewing Muscat's beachfront properties as value alternatives to Dubai or Doha.
What's the step-by-step process to buy property in Muscat?
Purchasing property in Muscat follows a structured process that typically takes 30-60 days from offer to completion.
First, research and select a property in areas open to foreign ownership, primarily ITCs, using reputable agents like Savills Oman or Imtilak Global. Once you've identified a property, negotiate terms and sign a preliminary agreement or reservation contract with a refundable deposit.
Conduct thorough due diligence including title verification, property inspection, checking for encumbrances, and ensuring compliance with zoning laws. This step is crucial as property laws in Oman differ significantly from Western countries.
Draft and sign the formal sales contract, which should be reviewed by legal advisors familiar with Omani property law. Make the agreed deposit payment (typically 10-20%) and follow the payment schedule, using escrow services where available for added security.
Obtain a No Objection Certificate (NOC) from the Ministry of Housing and Urban Planning, and if your investment exceeds OMR 250,000, apply for the investor residency visa. Finally, complete the property transfer at the Ministry of Housing, pay the 3% transfer fee, and receive your title deed officially registering you as the owner.
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Which real estate agents and websites are reliable in Muscat?
Finding trustworthy real estate professionals is crucial for a successful property purchase in Muscat.
International agencies like Savills Oman lead the market with extensive listings and deep market expertise, particularly for high-end properties and ITCs. Imtilak Global specializes in off-plan projects and ITC properties, offering comprehensive consulting services specifically tailored for foreign buyers.
Established local agencies include Vista Real Estate, Tamlik Oman, MK Muscat, and First Choice LLC, all with strong reputations and extensive portfolios across different price ranges. Royal E.W. and Oman Real also maintain significant market presence with diverse property listings.
For online searches, Dubizzle Oman (formerly OLX) remains the most popular platform for both sales and rentals, offering the widest selection of properties. Individual agents with excellent reputations include Nicole, who comes highly recommended by The Wandering Investor for her deep local knowledge and expat-friendly service.
It's something we develop in our Oman property pack.
What can you buy at different budget levels in Muscat?
Muscat's property market offers options across various price points, though foreign ownership restrictions apply to properties under OMR 45,000.
| Budget Range | Property Types | Typical Locations |
|---|---|---|
| Under OMR 50,000 | Studio/1-bed apartments (limited foreign ownership) | Jebel Sifah (off-plan), select usufruct buildings |
| OMR 50,000-100,000 | 1-2 bed apartments, small older villas | Al Khuwair, Ghala, Al Amerat, Al Seeb |
| OMR 100,000-200,000 | 2-3 bed apartments, small villas, townhouses | Al Seeb, Bousher, mid-range ITC units |
| OMR 200,000-400,000 | Large apartments, family villas, waterfront units | Al Mouj, Muscat Hills, Muscat Bay |
| OMR 400,000-700,000 | Luxury villas, penthouse apartments | Prime Al Mouj, beachfront properties |
| Above OMR 700,000 | Premium villas, large waterfront estates | Exclusive ITC locations, private beaches |
Which Muscat neighborhoods suit different budgets and lifestyles?
Muscat's diverse neighborhoods cater to various preferences, from luxury beachfront living to affordable family-friendly suburbs.
Luxury seekers gravitate toward Al Mouj Muscat and Qurum/Shatti Al Qurum, offering waterfront properties, international amenities, and strong expat communities, though prices start from OMR 200,000. These areas provide beach access, high-end shopping, and restaurants but come with limited availability and premium pricing.
Mid-range options include Bousher with new family-friendly developments near schools, and Al Khuwair/Ghala offering urban convenience at moderate prices. These neighborhoods balance affordability with amenities, though Bousher prices are rising rapidly and Al Khuwair can be congested.
Budget-conscious buyers find value in Al Seeb and Al Amerat, where spacious properties cost significantly less than central areas. Al Seeb shows strong growth potential as an up-and-coming area, while Al Amerat offers quiet suburban living, though both have fewer expatriate amenities.
Emerging areas include Sultan Haitham City, Oman's smart city project offering modern infrastructure and investment potential, and Jebel Sifah, a resort ITC allowing short-term rentals but requiring a car for city access. Ruwi remains the most affordable option for young professionals and students, though property stock is older.
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 the actual living costs for property owners in Muscat?
Understanding the full cost of property ownership in Muscat extends well beyond the purchase price.
The immediate cost includes a 3% property transfer fee paid to the government upon purchase. Annual maintenance typically runs 5% of rental income for landlords, while homeowners in ITCs pay HOA fees ranging from OMR 1,000-1,500 yearly for communal facilities and security.
Monthly utilities vary significantly by property size and usage, typically ranging from OMR 50-300, with larger villas in summer months reaching the higher end due to air conditioning costs. Internet services cost OMR 25-35 monthly, while property insurance and minor repairs add modest additional expenses.
The good news for investors is that Oman imposes no property tax or capital gains tax on individuals, making it one of the most tax-efficient property markets in the region. This tax advantage partially offsets the higher utility costs compared to some neighboring countries.
How is expat life in Muscat for property owners?
Muscat offers expatriates a comfortable, safe, and welcoming environment that ranks among the best in the Middle East.
The city provides modern amenities including international schools, world-class healthcare facilities, shopping malls, and diverse dining options, particularly concentrated in expat-friendly areas like Al Mouj and Qurum. These prime neighborhoods offer Western-standard services and infrastructure.
Safety stands out as one of Muscat's strongest advantages, with the city maintaining one of the lowest crime rates in the region. Expatriates consistently report feeling secure walking alone at night and allowing children considerable freedom, a rarity in many global cities.
While Omanis are notably welcoming and hospitable, expatriate social life often centers around international communities within ITCs and compounds. The culture respects privacy while remaining open to genuine cultural exchange, though learning basic Arabic enhances daily interactions and deeper integration into local society.
Where should you buy for long-term rental income in Muscat?
Successful rental investment in Muscat requires choosing the right location and understanding your target market.
Central Muscat areas like Al Mouj and Qurum deliver the highest rental demand and yields, with net returns of 3-5% for apartments after costs. These prime locations attract professional expatriates and families seeking quality housing near work and schools, with Al Mouj seeing 10-20% rental increases over the past 18 months.
Typical renters include expatriate professionals, families with children in international schools, and increasingly, young Omani professionals seeking modern living standards. Renters prioritize modern amenities, security, proximity to workplaces and schools, parking availability, and sea views in coastal properties.
For maximum returns, focus on well-maintained 1-2 bedroom apartments in prime areas or larger family villas in established neighborhoods. Furnished units command 20-30% premiums but require more management. Budget properties in Al Seeb or Ruwi offer higher yields but face more tenant turnover and maintenance issues.
Expect 10% vacancy rates in prime areas as normal, with slightly higher rates in secondary locations. Professional property management costs 5-8% of rental income but ensures consistent occupancy and maintenance standards.
What about short-term rental opportunities in Muscat?
Short-term rentals in Muscat operate under specific regulations that limit opportunities to certain areas.
Jebel Sifah stands out as the primary location permitting short-term rentals, attracting weekend visitors from Muscat and other GCC countries. This beachfront resort ITC sees strong demand from Omani families seeking weekend getaways and expatriates wanting beach access.
The typical short-term rental market consists of domestic tourists (60%), GCC visitors (25%), and business travelers (15%). Peak demand occurs during weekends, Omani public holidays, and the cooler months from October to March when outdoor activities are comfortable.
Income potential from short-term rentals can exceed long-term lets by 30-50% in permitted areas, though this comes with higher management requirements and operating costs. Successful operators report occupancy rates of 60-70% annually with proper marketing and maintenance.
Legal restrictions remain strict - most ITCs including Al Mouj explicitly prohibit Airbnb-style short-term rentals. Always verify specific project rules before purchasing, as violations can result in fines and forced sale. Only purchase in designated areas if short-term rental income is your primary investment strategy.
It's something we develop in our Oman property pack.
Is buying property in Muscat worth it in 2025?
The decision to buy property in Muscat in 2025 depends on your specific goals and circumstances.
For lifestyle buyers planning to live in Muscat long-term, purchasing makes strong financial sense given rising rents, no property taxes, and the stability of ownership. The city offers lower living costs than Dubai or Doha while maintaining high safety and quality of life standards, particularly appealing for families.
Investment buyers can expect moderate but steady returns with 3-7% annual appreciation projected for 2025 and net rental yields of 3-5% in prime areas. While these returns won't match hot markets like Dubai, Muscat offers stability and growing demand from an expanding expatriate population.
Short-term rental investors should focus exclusively on permitted areas like Jebel Sifah, where weekend and holiday demand continues growing. However, the limited locations accepting short-term rentals restrict this strategy to specific properties.
For those seeking quick profits through flipping, Muscat may disappoint due to lower liquidity and longer sale times compared to more mature markets. However, patient investors buying in emerging areas like Sultan Haitham City or undervalued neighborhoods could see substantial appreciation over 3-5 years as these areas develop.
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.
Muscat's property market in 2025 presents a balanced opportunity for both lifestyle buyers and investors seeking stable returns in a growing market.
While it won't deliver the spectacular gains of some regional markets, Muscat offers something increasingly rare: sustainable growth, reasonable entry prices, and a genuine quality of life that makes it worth calling home.
Sources
- Imtilak - Muscat Villas Under Construction
- The Wandering Investor - Real Estate Investment in Oman
- Savills - Oman Real Estate Market Research
- Mordor Intelligence - Oman Residential Real Estate Market
- Mirabello Consultancy - Guide to Buying Property in Oman
- SandsOfWealth - Muscat Real Estate Trends
- Numbeo - Cost of Living in Muscat
- Omnia Capital Group - Oman Luxury Homes for Expat Families
- Global Property Guide - Oman Price History
- Muscat Daily - Oman Short-Term Rentals Regulations