How's the real estate market doing in Muscat? (2026)

Authored by the expert who managed and guided the team behind the Oman Property Pack

Get all the data you need about the real estate market in Muscat

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’s the real estate market going in Muscat in 2026?

The Muscat residential property market in 2026 is stronger than it was in 2024 and 2025, but it is not a simple boom where every property sells quickly.

The strongest official signal is price momentum, because Oman’s residential real estate price index rose strongly in Q1 2026, and Muscat residential land was one of the clearest growth points.

For a foreign buyer, the main thing to understand is that the Muscat housing market is narrow, because the best foreign-buyable homes are mostly in places such as Al Mouj, Muscat Hills, Muscat Bay and Jebel Sifah.

What's the average days-on-market in Muscat in 2026?

As of 2026, a realistic average days-on-market for residential property in Muscat is about 75 to 105 days, with prime foreign-buyable homes usually selling faster than ordinary resale homes.

Most typical Muscat residential listings sit for about 60 to 120 days, while overpriced villas, older apartments and homes outside the main expat search areas can sit for 150 days or more.

Compared with one or two years ago, Muscat homes are moving a little faster in 2026 because transaction values are higher, price momentum is stronger and buyers have fewer good choices in the most popular foreigner-friendly areas.

Are properties selling above or below asking in Muscat in 2026?

As of 2026, most residential properties in Muscat still sell slightly below asking, with a realistic average sale-to-asking price ratio of about 93% to 97% for normal apartments and villas.

That means only a small share of Muscat homes probably sell above asking, likely under 10% of listings, and our confidence is medium because Oman does not publish a public achieved-price-to-asking-price series.

The Muscat properties most likely to attract full-price offers are scarce ready-to-move homes in Al Mouj, Muscat Hills, Muscat Bay, Shatti Al Qurum and Qurum, especially when the building is well managed and foreign ownership is clear.

By the way, you will find much more detailed data in our property pack covering the real estate market in Muscat.

What kinds of residential properties can I realistically buy in Muscat?

A foreign buyer in Muscat can buy residential property most cleanly in approved foreign-ownership projects, so the practical market is smaller than the full local market.

In simple terms, the easiest Muscat property types for foreigners are apartments, townhouses and villas inside approved projects such as Al Mouj, Muscat Hills, Muscat Bay and Jebel Sifah.

What property types dominate in Muscat right now?

For the full Muscat residential market in 2026, villas, apartments and residential land are all important, but for foreign buyers the realistic sale stock is roughly 55% to 65% apartments, 20% to 30% villas and 5% to 15% townhouses or duplex-style homes.

Apartments represent the largest share of the foreign-buyable Muscat property market because master-planned communities usually deliver more apartment units than villas.

That pattern became so common in Muscat because developers can place more apartments near marinas, golf areas, malls and mixed-use districts, while villas need more land and usually cost much more.

If you want to know more, you should read our dedicated analyses:

• How much should you pay for a house in Muscat?
• How much should you pay for an apartment in Muscat?
• How much should you pay for a villa in Muscat?

Are new builds widely available in Muscat right now?

New-build homes are available in Muscat in 2026, but they probably represent only about 20% to 35% of active residential listings once older apartments, resale villas and land-linked local listings are included.

As of 2026, the highest new-build concentration is in Al Seeb and Sultan Haitham City-linked districts, plus Al Mouj, Muscat Hills, Muscat Bay and parts of Bausher where planned-community stock is more visible.

Which neighborhoods are improving fastest in Muscat in 2026?

The fastest-improving areas in Muscat in 2026 are not always the cheapest areas, because the strongest improvement is tied to planning, lifestyle amenities and better access.

For foreign buyers, the most practical improving areas are Al Mouj, Muscat Hills, Muscat Bay and the western Muscat districts linked to Al Seeb and Sultan Haitham City.

Which areas in Muscat are gentrifying in 2026?

As of 2026, the clearest gentrification-style areas in Muscat are Ghubrah, Al Khuwair, Bausher and parts of Muttrah, while Al Mouj is already premium rather than newly gentrifying.

In Ghubrah and Al Khuwair, the visible signs are renovated apartments, newer cafes, stronger school and office access, better daily services and more middle-income expat demand around Sultan Qaboos Street.

Over the past two to three years, good homes in these gentrifying Muscat districts have probably risen by about 10% to 20%, while the best micro-locations may have done better because buyers are now more selective.

By the way, we’ve written a blog article detailing what are the current best areas to invest in property in Muscat.

Where are infrastructure projects boosting demand in Muscat in 2026?

As of 2026, infrastructure-led demand is strongest around Al Seeb, Sultan Haitham City, Madinat Al Irfan, Al Mouj, Muscat Hills and parts of Bausher.

The main demand drivers are Sultan Haitham City, the Greater Muscat Structure Plan, airport-linked access around Al Mouj, mixed-use growth near Madinat Al Irfan and better road connections across western Muscat.

The timeline is uneven, because Sultan Haitham City and Greater Muscat planning will shape the market through 2028 and beyond, while demand around existing areas like Al Mouj and Muscat Hills is already visible.

In Muscat, a major infrastructure announcement can lift nearby asking prices by about 5% to 10%, but the larger 10% to 20% impact usually comes only when buyers can see roads, services, schools, retail and delivery progress.

What do locals and insiders say the market feels like in Muscat?

People inside the Muscat property market usually describe 2026 as healthier, more active and more confident, but still selective.

The most important local feeling is that good homes are hard to find, while average homes still need patience and negotiation.

Do people think homes are overpriced in Muscat in 2026?

As of 2026, many locals and insiders think prime homes in Muscat are expensive, especially in Al Mouj, Muscat Hills and Muscat Bay, but they do not usually describe the whole city as overpriced.

The evidence people mention most often is the gap between ordinary local incomes and prices in foreigner-friendly projects, plus high service charges and limited resale choice in the best buildings.

The counterargument is that Muscat prime prices include scarcity, foreign-ownership access, lifestyle amenities, safety, airport access and a calmer living environment than larger Gulf cities.

The Muscat price-to-income ratio looks high in prime lifestyle districts, but more normal in older areas such as Al Khuwair, Ghubrah, Al Mawaleh and Al Khoud when compared with Oman’s broader local housing market.

What are common buyer mistakes people regret in Muscat right now?

The most common Muscat buyer mistake is paying a prime ITC-style price without fully checking ownership eligibility, service charges, building management and future resale depth.

The second most common mistake is buying a large villa or emotional sea-view unit without checking rental demand, summer vacancy risk, parking, cooling costs and how easy the property will be to sell later.

If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Muscat.

It’s because of these mistakes that we have decided to build our pack covering the property buying process in Muscat.

How easy is it for foreigners to buy in Muscat in 2026?

Muscat is not a fully open property market for foreigners, but it is also not closed if the buyer focuses on approved ownership areas.

This makes the Muscat buying process manageable for a foreign buyer, as long as the buyer accepts that the search area is limited.

Do foreigners face extra challenges in Muscat right now?

Foreigners face a medium level of difficulty when buying residential property in Muscat, mainly because local buyers can access a much wider range of neighborhoods and property types.

The key restriction is that foreign buyers usually need to buy inside approved Integrated Tourism Complexes or similar approved schemes, rather than assuming every cheaper Muscat neighborhood is available.

The practical challenges are checking that the project is truly foreign-buyable, understanding Arabic and English paperwork, comparing service charges, dealing with bank requirements and judging resale liquidity in a narrow buyer pool.

We will tell you more in our blog article about foreigner property ownership in Muscat.

Do banks lend to foreigners in Muscat in 2026?

As of 2026, banks in Oman can lend to foreign buyers, especially foreign residents with strong income, but mortgage access is more selective than it is for Omani buyers.

A realistic expectation in Muscat is around 50% to 70% loan-to-value for strong foreign resident buyers, with interest rates depending on the bank, residency status, income stability and property type.

Foreign applicants should expect to show passport and residency documents, salary proof, bank statements, employer details, property documents and a larger cash deposit than a local buyer may need.

You can also read our latest update about mortgage and interest rates in Oman.

We made this infographic to show you how property prices in Oman compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

How risky is buying in Muscat compared to other nearby markets?

Buying in Muscat in 2026 is usually less speculative than buying in Dubai at peak heat, but it can be less liquid when you want to sell.

The main risk in Muscat is not usually a sudden crash, but buying a property that takes too long to rent or resell.

Is Muscat more volatile than nearby places in 2026?

As of 2026, Muscat looks less volatile than Dubai, more liquid than smaller Omani cities such as Sohar or Salalah, and more conservative than many fast-moving Gulf investor markets.

Over the past decade, Muscat has moved more slowly than Dubai, with fewer sharp speculative spikes, but weak years can still push less liquid luxury homes or oversized villas down by 10% to 20% if the seller needs a quick exit.

If you want to go into more details, we also have a blog article detailing the updated housing prices in Muscat.

Is Muscat resilient during downturns historically?

Muscat residential property has been fairly resilient during downturns because the city has government jobs, embassies, schools, hospitals, airport access and the deepest expat demand in Oman.

During weaker periods, normal Muscat homes can stagnate or fall by about 5% to 10%, while overpriced luxury stock can need discounts closer to 15% to 20%, and recovery can take several years if liquidity is thin.

The Muscat homes that usually hold value best are well-managed apartments in Al Mouj and Muscat Hills, family homes in Qurum and Madinat Sultan Qaboos, and practical apartments in Al Khuwair and Ghubrah.

How strong is rental demand behind the scenes in Muscat in 2026?

Rental demand in Muscat in 2026 is solid, but it is not equally strong in every area or every property type.

The safest rental demand is usually long-term demand from families, expats and professionals, rather than short-term tourism demand.

Is long-term rental demand growing in Muscat in 2026?

As of 2026, long-term rental demand in Muscat is growing modestly, with the best areas benefiting from stable employment, school access, airport access and better lifestyle amenities.

The tenants driving Muscat rental demand are expat professionals, Omani families upgrading homes, embassy and company staff, teachers, healthcare workers and families who want easy school and office access.

The strongest long-term rental demand is in Al Mouj, Muscat Hills, Qurum, Shatti Al Qurum, Madinat Sultan Qaboos, Al Khuwair, Ghubrah, Bausher and good parts of Al Seeb.

You might want to check our latest analysis about rental yields in Muscat.

Is short-term rental demand growing in Muscat in 2026?

Short-term rentals in Muscat are affected by tourism licensing, building rules, community rules and owner-association restrictions, so a buyer should never assume that every apartment can legally or practically work as an Airbnb.

As of 2026, short-term rental demand in Muscat looks mixed rather than clearly booming, because Oman’s 3- to 5-star hotels still earned strong revenue by April 2026 but guest numbers and hotel revenue were below the same period in 2025.

A realistic current occupancy estimate for good short-term rentals in Muscat is about 45% to 60% across the year, with stronger months in the cooler season and weaker demand during the hot summer.

The main guest groups are leisure tourists, visiting family members, regional business travelers, conference visitors, weekend Gulf visitors and longer-stay guests who prefer Al Mouj, Qurum, Shatti Al Qurum, Muttrah or Muscat Bay.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Muscat.

We made this infographic to show you how property prices in Oman compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What are the realistic short-term and long-term projections for Muscat in 2026?

The realistic outlook for Muscat property in 2026 is positive, but a buyer should not expect every neighborhood to rise at the same speed.

The best outlook is in areas with legal foreign ownership, strong lifestyle appeal, good management and clear daily demand.

What's the 12-month outlook for demand in Muscat in 2026?

As of 2026, the 12-month demand outlook for residential property in Muscat is firm, especially in Al Mouj, Muscat Hills, Qurum, Ghubrah, Bausher and Al Seeb-linked growth areas.

The main factors that will influence Muscat demand over the next year are oil-linked confidence, expat hiring, bank lending, tourism performance, government investment and the visible progress of major urban plans.

A realistic 12-month price forecast for prime Muscat residential property is about 4% to 8% growth, while older or weaker homes may stay flat or rise only about 0% to 3%.

By the way, we also have an update regarding price forecasts in Oman.

What's the 3–5 year outlook for housing in Muscat in 2026?

As of 2026, the 3–5 year outlook for Muscat housing is moderately positive, with broad annual price growth around 3% to 6% and better lifestyle or ITC-style assets possibly doing closer to 5% to 8% in good years.

The projects most likely to shape Muscat over the next 3–5 years are Sultan Haitham City, the Greater Muscat Structure Plan, Madinat Al Irfan, Al Seeb growth and continued lifestyle development around Al Mouj and Muscat Hills.

The biggest uncertainty is supply timing, because large new communities can improve Muscat’s housing quality but also cap prices if too many similar apartments reach the market at once.

Are demographics or other trends pushing prices up in Muscat in 2026?

As of 2026, demographic trends are pushing Muscat prices up modestly, mainly because population growth, expat demand and household formation are strongest in the capital region.

The biggest demographic shifts are the large expat share of Oman’s population, family demand near schools and hospitals, and westward growth toward Al Seeb, Al Mouj and Sultan Haitham City.

Non-demographic trends also matter, especially lifestyle buying, long-term residency interest, safer Gulf diversification, airport access, tourism investment and demand for managed communities with clear services.

These pressures should continue through the late 2020s, but price growth will stay selective because new supply in western Muscat can reduce scarcity in some apartment segments.

What scenario would cause a downturn in Muscat in 2026?

As of 2026, the most likely downturn scenario for Muscat would be weaker oil-linked confidence, slower expat hiring, tighter bank lending and too much similar apartment supply arriving at the same time.

The early warning signs would be rising unsold listings in Al Mouj and Muscat Hills, larger seller discounts, slower mortgage approvals, weaker rents in Al Khuwair and Ghubrah, and softer hotel demand during the cooler season.

Based on Muscat’s historical pattern, a realistic downturn would likely mean a 5% to 10% fall in good areas and a 15% to 20% discount for overpriced or hard-to-sell homes.

What sources have we used to write this blog article?

Whether it’s in our blog articles or the market analyses included in our property pack about Muscat, we always rely on the strongest methodology we can … and we don’t throw out numbers at random.

We also aim to be fully transparent, so below we’ve listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why we trust it	How we used it
NCSI Real Estate Price Index Q1 2026	NCSI is Oman’s official statistics authority, so it is the strongest source for national real estate price movement.	We used it to measure fresh 2026 price momentum in Oman and Muscat. We treated it as the main official source for residential price-index movement.
MOHUP Open Data Portal	MOHUP is the official housing and urban planning authority in Oman.	We used it to understand the official transaction-data framework behind the market. We also used it to avoid relying only on broker comments.
NCSI main portal	The NCSI portal centralizes Oman’s official population, macroeconomic, tourism and real estate indicators.	We used it to cross-check current population and macro context. We also used it to confirm that the data environment was current in June 2026.
Savills Oman Property Market Q1 2026	Savills is a major international property consultancy with current Muscat market coverage.	We used it for transaction value, rental-market comments and submarket context. We treated it as a private-sector cross-check, not as an official source.
Savills Oman Property Market Q4 2025	This report gives recent structured market commentary just before 2026.	We used it to compare whether the 2026 market shift was new or already visible. We also used it to check rental and macro background.
Central Bank of Oman Financial Stability Report 2025	The Central Bank of Oman is the most authoritative source for banking, credit and financial-system risk.	We used it to understand lending conditions and financial resilience. We also used it to avoid overstating mortgage and banking risk.
Central Bank of Oman publication archive	This is the official archive for CBO financial-stability publications.	We used it to verify the source and report provenance. We also used it to place housing risk in a broader financial context.
Ministry of Heritage and Tourism laws and regulations	MHT is an official source for tourism investment rules and ITC-related legal material.	We used it to explain foreign ownership in approved tourism and investment areas. We also used it to separate legal access from simple listing availability.
MOHUP Greater Muscat Structure Plan	This is the official planning source for the long-term structure of Greater Muscat.	We used it to identify infrastructure-led demand corridors. We also used it to judge which areas may improve fastest over time.
MOHUP Sultan Haitham City	This is the official project page for one of Muscat’s most important new urban developments.	We used it to assess future new-build supply in western Muscat. We also used it to understand why Al Seeb is becoming more important.
Sultan Haitham City official site	This site gives project-level information about housing and planning inside Sultan Haitham City.	We used it to check the planned mix of villas, townhouses and apartments. We also used it to assess whether new-build choice is becoming deeper.
NCSI Tourism Data Portal	This is an official Oman data portal for tourism indicators.	We used it to understand short-term rental demand context. We also used it to separate tourist demand from long-term residential rental demand.