Is Muscat property cheap compared to Dubai?

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

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Muscat. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Omani real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Muscat, Salalah, and Sohar. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What is the average price per square meter for residential property in Muscat compared to Dubai?

Muscat residential property averages USD 1,000-1,700 per square meter, while Dubai ranges from USD 3,000-5,200 per square meter as of September 2025.

The Muscat property market shows significantly lower pricing across all residential segments. Central Muscat areas like Qurum, Al Khuwair, and Shatti Al Qurm typically command the higher end of this range, with luxury waterfront developments occasionally exceeding USD 2,000 per square meter.

Dubai's pricing reflects its position as a global real estate hub, with mid-tier areas starting around AED 1,100 per square foot (USD 3,000 per sqm) and premium locations reaching AED 1,582 per square foot (USD 5,200 per sqm). Prime areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah command even higher premiums.

This price differential represents a 50-70% cost advantage for Muscat buyers, making it an attractive entry point for investors seeking Gulf region exposure at lower capital requirements.

It's something we develop in our Oman property pack.

What is the price range for apartments in Muscat and Dubai for similar sizes and locations?

Muscat apartments range from USD 98,600 for 1-bedroom units to USD 389,100 for 3-bedroom properties in prime areas, while Dubai starts from USD 190,500 for 1-bedroom apartments up to USD 816,000 for luxury 2-bedroom units.

Apartment Type	Muscat Price Range (USD)	Dubai Price Range (USD)
Studio	75,000-150,000	108,000-594,000
1-Bedroom	98,600-272,400	190,500-407,000
2-Bedroom	129,700-368,400	326,000-816,000
3-Bedroom	181,600-389,100	500,000-1,200,000
Luxury Penthouse	450,000-800,000	1,500,000-5,000,000+

What are the current property price trends in Muscat over the last 12 months, and how do they compare to Dubai?

Muscat residential prices increased 7.3% year-on-year in Q1 2025, with projected annual growth of 3-7%, while Dubai experienced explosive growth with villa prices up 29% and apartments rising 20% annually.

The Muscat market shows steady recovery driven by Vision 2040 economic diversification initiatives and increasing expatriate demand. Land values particularly surged in 2024-2025, contributing significantly to overall price appreciation in residential developments.

Dubai's market momentum remains exceptionally strong, especially in luxury segments and branded developments. Villa prices in premium areas like Palm Jumeirah and Emirates Hills have seen the highest appreciation rates, while apartment growth has been more moderate but still substantial.

Muscat's growth trajectory appears more sustainable long-term, avoiding the volatility risks associated with Dubai's rapid price escalation. The Omani market benefits from government-backed stability measures and more conservative lending practices.

Market forecasts suggest Dubai's growth will moderate to 6-10% by end of 2025, while Muscat is expected to maintain its steady 3-7% annual appreciation through 2026.

How does the cost of living in Muscat compare to Dubai in terms of housing, utilities, and daily expenses?

Muscat offers substantially lower living costs, with 1-bedroom city center rent averaging USD 500-900 monthly versus Dubai's USD 1,580-2,500, representing 40-60% savings across most expense categories.

Housing costs in Muscat remain the most significant advantage, with comparable apartments costing less than half of Dubai equivalents. Prime locations in Muscat like Qurum or Al Mouj still cost less than mid-tier Dubai neighborhoods.

Utility expenses in Muscat average USD 100-150 monthly for standard homes, while Dubai residents pay AED 600-1,000 (USD 163-272) monthly. Electricity costs are particularly lower in Muscat due to government subsidies.

Daily living expenses including groceries, transportation, and dining show similar cost advantages for Muscat. Restaurant meals cost 30-50% less, while grocery bills are reduced by 25-40% compared to Dubai.

The overall cost of living differential makes Muscat particularly attractive for expatriate families and retirees seeking Gulf region lifestyle benefits without Dubai's premium pricing.

What is the rental yield in Muscat compared to Dubai for residential properties?

Muscat rental yields range from 3-5% net for residential apartments, while Dubai offers higher yields of 5-8% for apartments and townhouses, with premium yields in emerging districts.

Muscat's rental market shows steady demand from expatriate professionals, particularly in central locations and compounds with amenities. Prime waterfront properties and luxury developments achieve yields at the upper end of the range.

Dubai's rental market benefits from high demand, tourism-driven short-term rentals, and strong economic fundamentals. Areas like Dubai South, Dubailand, and International City offer higher yields, while prime locations like Downtown and Marina provide lower but more stable returns.

Muscat yields are calculated after typical operating costs including maintenance, management fees, and vacancy allowances. The market shows less seasonal variation compared to Dubai's tourism-influenced rental patterns.

For buy-to-let investors, Dubai's higher yields offset some of the price premium, while Muscat offers more predictable rental income with lower entry costs and management complexity.

What are the average prices for villas and luxury properties in both Muscat and Dubai?

Muscat villas range from USD 337,000-1,447,000 depending on location and size, while Dubai villas start from USD 816,000 and can exceed USD 13.6 million in ultra-prime locations like Palm Jumeirah.

Muscat's villa market concentrates in areas like Al Mouj, Muscat Hills, and The Wave, with waterfront properties commanding premium pricing. Four-bedroom villas in established compounds typically cost USD 500,000-800,000.

Dubai's villa market shows extraordinary price ranges, with affordable family villas in areas like Arabian Ranches starting around AED 3 million (USD 816,000), while luxury estates in Emirates Hills and Palm Jumeirah reach AED 50 million+ (USD 13.6 million).

Luxury properties in Muscat focus on waterfront developments and golf course communities, offering Mediterranean-style architecture and private beach access. These properties typically feature 4-6 bedrooms with prices rarely exceeding USD 2 million.

Dubai's luxury segment includes branded residences, sky penthouses, and palatial villas with private beaches, commanding some of the world's highest per-square-meter prices for residential property.

How do property taxes and fees in Muscat compare to those in Dubai for both buyers and renters?

Muscat imposes no annual property tax with minimal 3% transfer fees, while Dubai charges 4% transfer fees plus 2% broker commission but also has no ongoing property taxation.

Muscat's transaction costs remain among the lowest in the Gulf region. Foreign buyers purchasing in Integrated Tourism Complexes face the standard 3% transfer fee plus legal and registration costs typically totaling under 5% of purchase price.

Dubai buyers pay 4% Dubai Land Department transfer fee, 2% broker commission, plus administrative fees totaling approximately 7% of purchase price. No annual property taxes apply, making ongoing ownership costs minimal.

Rental regulations in both markets favor tenants, with Muscat requiring standard tenancy contracts and Dubai implementing Ejari registration systems. Rental disputes are handled through established legal frameworks in both jurisdictions.

Neither market imposes wealth taxes or inheritance taxes on property, making both attractive for international investors seeking tax-efficient real estate exposure in the Gulf region.

What are the typical capital appreciation rates for properties in Muscat versus Dubai over the last few years?

Muscat properties appreciate at 3-7% annually with steady recovery momentum, while Dubai achieved exceptional 20-29% villa appreciation and 11-24% apartment growth in 2024-2025.

The Muscat market shows consistent moderate appreciation driven by economic diversification, infrastructure development, and steady population growth. Government initiatives under Vision 2040 support sustainable price growth without speculative bubbles.

Dubai's exceptional appreciation reflects post-pandemic recovery, international investor demand, and major infrastructure completions. Luxury segments and off-plan developments show the highest appreciation rates, particularly in new master-planned communities.

Historical analysis shows Muscat's appreciation cycles are less volatile, with 5-year average growth around 4-6% annually. Dubai experiences more dramatic cycles, with periods of rapid growth followed by corrections.

Looking forward, Muscat's appreciation is expected to moderate to sustainable 4-5% levels, while Dubai's growth is forecasted to cool to 6-10% as supply increases and investor sentiment normalizes.

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.

How does the demand for property in Muscat compare to Dubai, and how does this impact pricing?

Muscat experiences growing but moderate demand from expatriates and local buyers, while Dubai faces intense global demand from high-net-worth individuals, investors, and safe-haven seekers, directly driving its premium pricing.

Muscat's demand primarily comes from expatriate professionals working in oil, gas, and government sectors, plus growing numbers of retirees attracted to the sultanate's stability and lifestyle. The market shows steady absorption without speculative excess.

Dubai's demand is multifaceted, including global investors, regional wealth preservation, second-home buyers, and residents attracted to tax benefits and lifestyle amenities. This creates sustained upward pressure on prices across all segments.

Transaction volumes in Muscat remain manageable, allowing for price discovery without bidding wars. Dubai's high transaction velocity often results in premium pricing as buyers compete for limited inventory in prime locations.

The demand differential explains much of the pricing gap, with Dubai's international appeal commanding global city premiums while Muscat maintains regional market characteristics with more accessible pricing for actual residents.

What are the key factors influencing property prices in Muscat, and how do they differ from Dubai's factors?

Muscat prices are driven by Vision 2040 economic diversification, expatriate population growth, and infrastructure development, while Dubai responds to global investment flows, luxury branding, population growth, and tourism demand.

1. **Muscat Price Drivers:** - Vision 2040 economic transformation initiatives - Surge in expatriate residents from neighboring countries - Government regulatory reforms improving market access - Infrastructure projects including new airports and ports - ITC residency-linked purchase requirements creating baseline demand 2. **Dubai Price Drivers:** - Global safe-haven investment seeking stable returns - Population growth exceeding 3% annually - Major infrastructure completions (Expo 2020 legacy projects) - Luxury brand partnerships and branded residences - Regulatory openness including long-term visas and investment programs

Muscat's factors promote steady, sustainable growth aligned with economic fundamentals, while Dubai's drivers create more volatile but potentially higher-return conditions.

Both markets benefit from political stability and favorable business climates, but Dubai's global connectivity and financial hub status create additional demand layers not present in Muscat.

It's something we develop in our Oman property pack.

How much does it cost to buy land in Muscat compared to Dubai?

Muscat residential land costs USD 100-700 per square meter depending on location, while Dubai prime land fetches AED 2,000-5,000 per square meter (USD 544-1,361), with premium waterfront plots commanding much higher prices.

Land price increases drove much of Muscat's recent property appreciation, with undeveloped plots in areas like Al Hail, Bousher, and Seeb showing strong value growth. Waterfront and hillside locations command premium pricing.

Dubai's land market reflects its density constraints and premium positioning, with buildable plots in established areas starting around AED 2,000 per square meter. Prime locations like Palm Jumeirah, Jumeirah Bay Island, and Downtown command substantial premiums.

Muscat offers significantly more developable land at affordable prices, making it attractive for villa developments and private residences. Zoning regulations are straightforward, with clear development rights for approved areas.

Dubai's land scarcity drives higher values, while reclamation projects and master-planned communities create new supply at premium pricing. The cost differential makes Muscat attractive for investors seeking land banking opportunities.

What are the government policies or regulations on property ownership for foreigners in Muscat versus Dubai?

Muscat allows foreign freehold ownership in Integrated Tourism Complexes with minimum USD 117,000 investment or USD 650,000 for residency, while Dubai offers full freehold access to all foreigners in designated zones with no residency minimums.

Oman's recent reforms have significantly eased foreign property ownership, previously restricted to leasehold arrangements. The ITC system now provides clear pathways for international buyers while supporting tourism development objectives.

Dubai's freehold zones cover most desirable residential areas including Downtown, Marina, Palm Jumeirah, and emerging districts. Foreign ownership includes full title transfer rights and inheritance provisions without nationality restrictions.

Muscat's regulations link property ownership to residency benefits, with larger investments qualifying for long-term visas and family sponsorship rights. This creates additional value for buyers seeking regional residence options.

Both jurisdictions offer streamlined purchase processes with established legal frameworks, title insurance options, and efficient registration systems. Dubai's process is generally faster due to digital integration and higher transaction volumes.

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.

Sources

1. Global Property Guide - Oman Square Meter Prices
2. Khaleej Times - Dubai Property Prices Rise
3. Consultancy Middle East - Dubai Property Trends 2025
4. DXB Interact - Dubai Property Market
5. Property Monitor - Monthly Market Report January 2025
6. Global Property Guide - Oman Price History
7. Fly Homes - Cost of Living in Oman
8. Sands of Wealth - Muscat Real Estate Market
9. Sands of Wealth - Muscat Property
10. Arab News - Oman Business Economy