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
Are you considering investing in Muscat's real estate market? Curious about the trends that will shape property values in 2025? Wondering if now is the right time to buy a home in this vibrant city?
We will lay down recent insights, providing you with a clear picture of what to expect. Here, no guesswork, we rely only on solid data to bring you 15 strong forecasts for Muscat's real estate landscape in 2025.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Oman Property Pack
1) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Muscat is becoming a hotspot for foreign property buyers thanks to recent government initiatives.
In March 2022, the Omani government made a game-changing move by allowing foreigners to buy real estate, with a few exceptions. This decision has opened the door for international buyers, sparking a surge of interest in the market. The relaxed regulations are part of a broader strategy to attract foreign investment.
Oman's government is also rolling out the red carpet for foreign investors with low tax rates and flexible capital transfer options. By 2024, investors from 135 different nationalities had entered the market, a significant jump from 67 in 2023. This influx of foreign capital is giving a big boost to the real estate sector.
Muscat's appeal doesn't stop at policy changes. The city is undergoing a transformation with new urban development projects that promise to add thousands of hotel rooms and housing units. These improvements are making Muscat an even more attractive destination for real estate investment.
Infrastructure upgrades are also in the works, enhancing the city's livability and appeal. The government's commitment to improving amenities is a key factor in drawing international buyers. These efforts are turning Muscat into a prime location for property investment.
With these initiatives, the number of foreign buyers in Muscat is expected to keep rising as Oman continues to promote foreign investment. The city's real estate market is on an upward trajectory, making it a compelling option for those looking to invest in property.
Sources: Oxford Business Group, Cavendish Maxwell, Arab News
2) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
In Muscat, government initiatives are keeping rental prices stable.
The Ministry of Housing and Urban Planning has rolled out the 'Al Souroh Initiative,' which is a big deal for the city. It covers 1.9 million square meters and will add 4,800 housing units, accommodating around 24,000 people. This boost in housing supply is crucial for keeping rents from skyrocketing.
Oman's Social Housing Programme is another piece of the puzzle, having helped over 1,382 families in 2023. The government is clearly focused on making housing more affordable. They're also using a Public Private Partnership (PPP) model, which encourages private developers to jump into affordable housing projects, ensuring a steady flow of rental units.
In neighborhoods like Al Mouj and Muscat Hills, rental prices have been pretty steady, with only minor ups and downs. This is partly because of a stable economic outlook, where low inflation rates and moderate income growth help create a balanced rental market.
For anyone considering a move to Muscat, these factors mean you can expect affordable housing options to remain available. The government's proactive approach is making sure that the rental market doesn't get out of hand.
So, if you're thinking about buying property in Muscat, know that the city's rental market is being carefully managed to stay affordable, thanks to these ongoing efforts.
Sources: Mordor Intelligence, Zawya, Cityscape Intelligence, FHFA
Everything you need to know is included in our Property Pack for Muscat
3) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Mid-range property rents in Muscat are steadily rising due to strong demand from expatriate families.
In recent months, the expatriate population in Oman has surged by 33%, reaching 2.17 million. This influx is largely due to the country's growing economy, which is attracting more foreign workers. Many of these expatriates prefer mid-range housing, creating a significant demand in this segment.
Oman's economy is on the upswing, bolstered by increased energy production and structural reforms. These economic improvements are drawing more expatriate families to the country for job opportunities, further fueling the demand for mid-range rentals. The limited availability of such properties is causing a demand-supply imbalance, which is pushing rents higher.
In popular areas like Al Mouj and Qurum, rents have jumped by 10 to 20% and 5 to 15% over the past 18 months. This trend is expected to continue as Muscat develops new infrastructure and amenities, making the city even more appealing to expatriate families seeking quality housing.
With the ongoing development in Muscat, the city's desirability is on the rise, attracting more expatriates who are looking for comfortable living spaces. This is particularly true for families who prioritize access to good schools and community facilities.
As the demand for mid-range properties continues to grow, rents are likely to keep climbing, especially in areas with limited housing options. This makes it a competitive market for those looking to rent in Muscat.
Sources: Savills Oman Research, Savills Oman Insight, World Bank Report
4) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
The expatriate population in Muscat has seen a 33% increase from 1.63 million in September 2022 to 2.17 million in May 2023.
This influx is driving up demand for rental properties, especially in sought-after areas like Al Mouj and Qurum. In these neighborhoods, rental values have jumped by 10 to 20% and 5 to 15% respectively over the past 18 months, reflecting the growing interest.
Historically, Muscat's rental market has always responded to changes in the expatriate population. After a dip during the COVID-19 pandemic, the numbers are climbing again, leading to stabilizing and increasing rental values. Real estate agencies are taking note and expect this trend to persist.
For those considering buying property, it's worth noting that the demand isn't just a temporary spike. The steady growth in the expatriate community suggests a long-term upward trend in rental prices, making it a potentially lucrative investment.
Insider knowledge points to the fact that as more expatriates settle in Muscat, the demand for quality housing will continue to rise. This is particularly true in areas with good amenities and proximity to business hubs, which are highly attractive to newcomers.
With the expatriate population showing no signs of slowing down, the rental market in Muscat is poised for continued growth. This makes it an exciting time for potential investors looking to capitalize on the increasing rental demand.
Sources: Savills Oman Property Report, Zawya Real Estate News, Savills Insight and Opinion
5) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
The expatriate population in Muscat is steadily increasing, boosting demand for rental properties.
As of September 2023, expatriates made up a significant portion of Oman's population, with 2,224,893 expatriates out of a total population of 5,136,957. This means nearly half of the population consists of expatriates, and their numbers are on the rise. The government has been proactive in encouraging this growth. For instance, the Investment Residency Program allows foreign investors to live in Oman for up to 10 years, which is a big draw for expatriates.
This program is not just about numbers; it's about attracting the right kind of people. By targeting foreign investors and retirees, Oman is boosting its expatriate population with individuals who are likely to contribute positively to the economy. The establishment of international companies in Muscat, like InterGest Oman in 2023, is another factor. These companies are setting up shop in the city, and they need foreign workers to support their operations.
The growth in sectors like oil, gas, and tourism, especially in green hydrogen, is also expected to draw more foreign workers to Muscat. This is not just speculation; it's a trend that's already happening. The demand for skilled workers in these industries is high, and expatriates are filling these roles. This influx of foreign talent is driving the demand for rental properties, as these workers need places to live.
Muscat is becoming a hub for international business, and this is reflected in the increasing number of expatriates. The city's appeal is not just limited to work opportunities; it's also about lifestyle. With a growing number of international schools, healthcare facilities, and leisure options, Muscat is an attractive place for expatriates to settle down. This is why the demand for rental properties is expected to keep rising.
Sources: The Arabian Stories, Uglobal, InterGest Oman, Crowe
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6) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Muscat is experiencing a noticeable rise in demand for affordable housing.
This surge is largely driven by government initiatives and the city's economic growth, both key components of the Omani government's Vision 2040 plan. The plan's goal is to diversify the economy and reduce reliance on oil, which has led to significant investments in infrastructure and tourism. These developments are making Muscat an attractive place for property buyers, especially those seeking affordable options.
The Ministry of Housing and Urban Planning (MHUP) is playing a crucial role in this transformation. In 2024, they extended housing assistance to 1,200 low-income beneficiaries, aiming to improve living standards and ensure social stability. As of September 2024, MHUP has been actively constructing affordable housing units, with 478 units specifically designed for low-income families. This shows a strong governmental push to increase the availability of affordable housing.
Looking ahead, the MHUP has allocated RO70 million for the housing assistance program for the fiscal year 2024-2025, which is expected to benefit approximately 2,400 families. This substantial budget increase underscores the government's commitment to supporting low-income homebuyers. The growing interest in homeownership among low-income residents, driven by these initiatives and improving economic conditions, further supports the trend of rising demand for affordable housing.
Sources: Muscat Daily, Muscat Daily
7) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Muscat's rental market is buzzing with increased demand from expatriate families.
Since late 2021, more expatriates have been moving to Muscat, drawn by its appealing communities like Al Mouj, which offer quality living and top-notch amenities. This influx has naturally led to a higher demand for rental properties.
By the end of 2022, Muscat's population had grown significantly, thanks to government policies favoring foreign investment. Long-term residency permits for investors are part of this strategy, making the city even more attractive to expatriates and boosting the demand for homes.
The Omani government's Vision 2040 plan is another factor, with its focus on infrastructure and tourism expected to further increase property demand. Improved public transportation and city connectivity are set to make certain areas more desirable, pushing property values up.
Expatriate families are particularly interested in mid-range housing that offers a variety of amenities. Developments like Hai al Naseem, with their landscaped areas, parks, and health centers, are especially appealing, driving steady demand for such properties.
These mid-range properties are not just homes; they offer a lifestyle that includes commercial facilities and community spaces, making them a top choice for expatriates looking for comfort and convenience.
Sources: Oman Property Report 2023 - Savills, Real Estate in Oman - Investment, PPPs, and Affordable Housing, Yes, property prices will rise in Muscat in 2025 - Sands Of Wealth
8) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Rental yields in Muscat are on the rise, and this trend is expected to continue.
In popular areas like Al Mouj and Qurum, rental prices have jumped significantly over the past 18 months, with increases of 10 to 20% and 5 to 15%, respectively. This surge highlights a strong demand for rental properties, naturally pushing yields higher. The growing expatriate population, which now makes up 61.1% of Muscat's residents, is a major driver of this demand. Many expatriates prefer renting for its flexibility and affordability, further fueling the market.
The Omani government is actively encouraging this trend with policies like the Vision 2040 plan and new visa regulations. These initiatives aim to attract foreign investment and expatriates, boosting demand for rental properties as more people are drawn to Muscat for its economic opportunities and improved infrastructure.
Adding to the pressure, there's a limited supply of new, high-quality rental properties. This scarcity, combined with high occupancy rates, means rental values are climbing. As the expatriate population continues to grow, rental yields are likely to keep increasing.
Sources: Mordor Intelligence, Savills, The Arabian Stories
Everything you need to know is included in our Pack for Muscat
9) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
The Omani government is pushing for sustainable building practices as part of its Vision 2040 plan.
They're investing heavily in infrastructure and tourism, with a focus on green building certifications. By offering incentives, the government is nudging developers to go green. This means if you're looking to buy property in Muscat, you might notice more eco-friendly options popping up.
Take the Sustainable City Yiti, for example. It's set to be Oman’s first ‘net-zero’ city, aiming to generate all its energy from renewable sources and recycle all its water. This project is a big deal because it aligns with Vision 2040 and supports the national tourism strategy. If you're considering investing, this could be a glimpse into the future of property development in Muscat.
What's interesting is the collaboration between the government and private companies. For instance, the Oman Tourism Development Company teamed up with Diamond Developers for the Yiti project. This partnership is a model for how green technology is being integrated into property development. It's likely to inspire more collaborations, making sustainable practices a norm in the industry.
These efforts are not just about building eco-friendly structures; they're about creating a sustainable lifestyle. The government’s push for green certifications means that new developments will likely have features like solar panels and efficient water systems. This could make properties more attractive to buyers looking for long-term savings and environmental benefits.
So, if you're eyeing property in Muscat, keep an eye out for these sustainable developments. They’re not just a trend; they’re part of a larger movement towards a greener future. New government policies will encourage sustainable building practices, impacting property development in ways that could benefit both the environment and your investment.
Sources: Arab Urban, SGS Oman, The Cool Down
10) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Community living is becoming increasingly popular in Muscat, thanks to integrated housing projects.
Take the Sultan Haitham City project, for example. It's a massive development by the Oman government, designed to house over 100,000 people. This isn't just about providing homes; it's about creating a lifestyle with schools and health centers right at your doorstep. People are looking for more than just a place to live; they want a complete lifestyle experience.
Expatriates, in particular, are driving the demand for properties with shared amenities. Developments like Al Mouj are hot commodities because they offer modern perks like private beaches, parks, and social clubs. The Oman Residential Real Estate Market is expected to grow significantly, with a projected CAGR of 9.19% from 2024 to 2029, largely due to this demand for communal living spaces.
Surveys show that expatriates have a clear preference for community living. They appreciate the high-quality lifestyle that places like Al Mouj offer. Fitness centers and social clubs are not just amenities; they enhance the living experience, making these properties even more appealing. The media has also played a part in showcasing the benefits of shared amenities, adding to their allure.
In Muscat, the trend is clear: people want more than just a home. They are looking for a community, a place where they can enjoy a variety of amenities and social spaces. This shift is reshaping the real estate market, making properties with shared facilities highly desirable.
As more people embrace this lifestyle, the demand for such properties is only going to increase. It's not just about owning a piece of real estate; it's about being part of a community that offers a richer, more fulfilling way of life.
Sources: Mordor Intelligence, Ideal Buildings, Arab Urban
11) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
The luxury real estate market in Muscat is experiencing a shift as new high-end developments flood the market.
Projects like Al Fayha's mixed-use development are adding to the inventory, creating an oversupply of luxury homes. This means there are more properties available than there are buyers, which is not ideal for sellers.
Many of these luxury properties are not selling because they miss the mark on location and design. Buyers are looking for something specific, and these homes just aren't it, leading to a pile-up of unsold units.
High-net-worth individuals are also slowing down their purchases of luxury properties in Muscat. With so many options, the market has become more competitive, making it less appealing for potential buyers.
To attract buyers, developers are now offering discounts and incentives, like interest-free installments. They're trying to make these properties more attractive in a crowded market.
As supply continues to outpace demand, luxury property prices in Muscat are expected to decline slightly. This trend is something to watch if you're considering buying in the area.
Sources: Mordor Intelligence, AGBI, Samaland Property
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12) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Madinat Al Sultan Qaboos is quickly becoming a favorite spot for expatriates thanks to its international schools and vibrant community vibe.
Families are flocking to the area, drawn by the high-quality education options like the Madinat Al Sultan Qaboos Private School, which caters to over 500 students from kindergarten to grade 12. This school is a testament to the growing demand for international education among expat families.
Oman's expatriate population has surged, with a 33% increase from September 2022 to May 2023, reaching 2.17 million. Many of these newcomers are settling in Madinat Al Sultan Qaboos, attracted by its welcoming atmosphere and strong community feel, as highlighted in surveys like the Expat Insider 2024.
Real estate in the area is booming, with a noticeable rise in property demand and prices. This trend is fueled by luxury housing projects and interest from international buyers. The area's appeal is further enhanced by local initiatives to improve community infrastructure, such as new transport links.
These developments are making Madinat Al Sultan Qaboos even more attractive to expatriates, who value the area's community-oriented environment. The combination of quality education, luxury housing, and improved infrastructure is a winning formula for those looking to settle in Oman.
As more expatriates choose Madinat Al Sultan Qaboos, the area's reputation as a top expat destination continues to grow. The community feel, bolstered by international schools and local initiatives, is a major draw for families seeking a new home in Oman.
Sources: Expat Insider, Madinat Al Sultan Qaboos Private School, Savills Oman Property Report
13) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Muscat's expanding public transportation network is set to boost property values in well-connected areas.
Historically, homes near transit facilities have seen better value increases. For example, in cities like Boston and San Francisco, properties close to transit saw a 41.6% higher increase in value compared to those further away. This trend suggests that Muscat could experience similar benefits as its transit network grows.
Access to public transportation often leads to higher property demand. Properties with good transit access tend to retain their values better during economic downturns. This is because proximity to public transit can significantly increase commercial property values, sometimes by as much as 42%.
The Muscat Metro project is designed to reduce road congestion and travel times, making areas with improved transit access more appealing. This aligns with findings that reduced transportation costs and better accessibility can increase property values. Homebuyers are often willing to pay a premium for properties within a short walk of transit stops.
In fact, buyers are ready to pay 5-8% more for homes within a 10-minute walk of transit stops. This shows a strong interest in neighborhoods that are well-connected by public transport, making them more attractive to both residents and investors.
Sources: ULI Research Roundup: The Impact of Transit on Property Values, What's The Value of Properties Near Public Transport?
14) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
The Seeb district is buzzing with major infrastructure developments that promise to boost property values.
Thanks to the Omani government's Vision 2040 plan, there's a big push to diversify the economy and cut down on oil dependency. This means pouring money into infrastructure and tourism, which is great news for Seeb. The Ministry of Transport, Communications and Information Technology is on a mission to upgrade road networks and roll out rail and metro systems. These changes are set to make Seeb more connected and appealing to both residents and investors.
Real estate experts are predicting a rise in property prices in Muscat, including Seeb, driven by economic growth and more foreign investment. New visa policies, like long-term residency permits for investors, are expected to boost demand for homes in the area. This demand is likely to be fueled by the development of tech-smart, energy-efficient apartments and larger suburban homes, which align with current trends in remote work and sustainability.
Seeb is becoming a hotspot for tech-savvy, energy-efficient apartments and spacious suburban homes. These properties are in line with the latest trends in remote work and sustainability, making them even more attractive. The introduction of new visa policies, such as long-term residency permits for investors, is expected to further increase demand for residential properties in the area.
With all these developments, Seeb is shaping up to be a prime location for anyone looking to invest in property. The district's enhanced connectivity and modern housing options are set to attract a wave of new residents and investors. As the area becomes more accessible and appealing, property values are expected to rise, making it a smart choice for potential buyers.
Sources: Arab Urban Development Institute, Zawya, Muscat Price Forecasts, Muscat Daily
Everything you need to know is included in our Property Investment Pack for Muscat
15) Real estate prices in Muscat will rise significantly due to increasing demand and limited supply
Virtual reality tours are now a staple for property viewings in Muscat, making the buying process much more engaging.
Thanks to Oman's impressive internet penetration of 97.8% and a mobile connection rate of 150.8%, VR tours are easily accessible. This tech-savvy environment means you can explore homes without leaving your couch, making it super convenient.
After COVID-19, the demand for digital solutions in real estate skyrocketed. VR tours let you visit multiple properties from anywhere, saving you both time and effort. It's like having a personal open house, minus the travel.
Companies like Matterport have shown that VR tours attract more views and inquiries, proving their effectiveness. This means more eyes on properties and potentially quicker sales.
Globally, the real estate market is embracing VR, with projections suggesting it could hit USD 3.16 billion by 2025. This trend shows that buyers are leaning towards virtual tours when checking out listings.
In Muscat, the shift to VR is not just a trend but a practical solution, thanks to the city's tech infrastructure. Virtual tours are becoming the norm, offering a richer, more detailed look at properties.
Sources: PhotoUp, DataReportal, The Luxury Playbook
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.