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
What do the latest numbers reveal about Muscat’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Muscat, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) In 2024, 15% of properties sold in Muscat were valued over OMR 500,000
In 2024, 15% of properties sold in Muscat were valued at over OMR 500,000.
Muscat's real estate market was buzzing, especially with luxury waterfront properties catching the eye of many buyers. These modern, high-end homes, packed with luxurious amenities, were in high demand, pushing up the number of properties sold at premium prices.
New visa policies and urbanization trends were also playing a big role. Muscat was becoming a hotspot for expatriates and foreign investors, particularly from the GCC region. This influx was driving up demand for high-value properties, as more people looked to invest in the city's growing market.
The 'Oman – H1 2024 Market Overview' report painted a picture of a thriving real estate sector. The first half of 2024 saw peak property sales and mortgage contracts, creating a fertile ground for high-value property transactions.
Foreign investment was another key player in this trend. With more international money flowing into Muscat's real estate, the market was experiencing dynamic growth, further boosting the sales of properties over OMR 500,000.
All these factors combined to create a robust environment for high-value property sales, making Muscat a prime location for real estate investment in 2024.
Source: Rasmal
2) Property transactions in Muscat's suburbs increased by 20% between 2023 and 2024
Muscat's suburban areas saw a 20% increase in property transactions between 2023 and 2024.
This surge is part of a broader trend in Oman's real estate market, which is experiencing a boom. The country's economy is on the upswing, with the GDP expected to reach 2.7% by the end of 2024. Such positive economic conditions often boost confidence in real estate, leading to more buying and selling activity.
Families are increasingly drawn to the suburbs, seeking larger homes near green spaces, international schools, and shopping centers. This shift in preference is a key factor in the rising demand for suburban properties. People want more space and amenities that are typically found outside the bustling city center.
Urbanization trends in Muscat are also playing a role. As more people move to the city for job opportunities, the demand for housing in suburban areas grows. These areas offer more affordable and spacious living options, making them attractive to newcomers.
Government initiatives are further fueling this growth. Policies aimed at boosting the economy and real estate market are encouraging more transactions. This supportive environment is making it easier for people to invest in property.
Sources: Rasmal
We have made this infographic to give you a quick and clear snapshot of the property market in Oman. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Muscat's urban renewal projects are expected to boost property values by 3% annually in affected areas
Muscat is buzzing with urban renewal projects, expected to boost property values by 3% annually.
Thanks to the Omani government's Vision 2040 plan, Muscat is becoming a hotspot for investment. This ambitious plan aims to diversify the economy beyond oil, focusing on infrastructure and tourism. As a result, more people and businesses are drawn to the area, increasing property demand.
Key projects like the Greater Muscat Structure Plan 2040 are at the forefront, emphasizing smart city developments and sustainable infrastructure. Developments such as Sultan Haitham City and The Sustainable City – Yiti are integrating modern technology and eco-friendly practices, making these areas highly desirable and likely to see property values rise.
Neighborhoods like Al Mouj and Qurum are particularly promising. With luxury housing projects, limited housing stock, and heritage building renovations, these areas are becoming magnets for both local and international buyers, pushing property values even higher.
In Al Mouj, for instance, the blend of luxury and limited availability is a key driver. Meanwhile, Qurum's charm is enhanced by its heritage renovations, making it a prime location for investment.
Sources: Rasmal, Clarity.io
4) Muscat's property appreciation rate is projected to average 3% annually in 2025
In Muscat, the average annual property appreciation rate is expected to hit 3% by 2025.
This growth is largely due to steady economic development seen in 2023 and 2024, which has set a solid stage for property values to rise. As Muscat's economy continues to expand, it naturally boosts the real estate market.
Another key factor is the influx of foreign investment. Over recent years, Muscat has become a magnet for international investors, driving up demand for properties. This trend shows no signs of slowing down, further supporting the anticipated appreciation.
Government initiatives, particularly the Vision 2040 plan, are also playing a crucial role. By focusing on economic diversification and infrastructure improvements, these efforts are expected to increase property demand, aligning with the projected 3% growth.
With these elements in play, Muscat's real estate market is poised for a steady climb, making it an attractive option for potential buyers. The combination of economic growth, foreign investment, and government initiatives creates a promising environment for property appreciation.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
5) Nearly 80% of new residential developments in Muscat will feature sustainable designs in 2025
In 2025, nearly 80% of new residential developments in Muscat are designed with sustainable features.
This shift is part of the Greater Muscat Structure Plan 2040, which focuses on economic diversification and sustainable technology integration. Developments like The Sustainable City – Yiti are prime examples, showcasing how modern infrastructure is being built with sustainability at its core.
Oman's real estate market is seeing a surge in demand for off-plan properties, which often come with tech-smart, energy-efficient features. These homes are perfect for remote work and align with current sustainability trends, offering buyers the chance to customize their living spaces while enjoying lower costs.
Government initiatives, such as Vision 2040, are pivotal in this sustainability shift. By aiming to diversify the economy and reduce oil dependency, the government is investing in infrastructure and tourism, which in turn boosts property demand. New visa policies, like long-term residency permits for investors, are attracting more expatriates and foreign investors to Muscat.
In areas like Al Mouj, Qurum, and Madinat Al Sultan Qaboos, there's a clear preference for homes with sustainable features. These neighborhoods are experiencing gentrification, benefiting from new transport links and redevelopment projects, making them more appealing and driving up demand for eco-friendly living options.
As Muscat continues to evolve, the focus on sustainability is not just a trend but a necessity, shaping the future of residential developments and attracting a diverse range of buyers.
Sources: Kanebridge News ME
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6) Muscat’s population is expected to grow by 3% annually, boosting housing demand
Muscat's population is set to grow by 3% annually, pushing up housing demand.
This surge is largely driven by the Omani government's Vision 2040 plan, which aims to diversify the economy beyond oil. With significant investments in infrastructure and tourism, Muscat is becoming a magnet for new opportunities, attracting more people to the city.
Foreign investors, especially from the GCC region, are increasingly interested in Muscat's real estate market. They are drawn by the city's strategic location and stable political climate, which has led to a rise in housing demand.
Urbanization trends are also a key factor. Many are moving to Muscat for job opportunities, which has increased the need for housing. However, the market is struggling with a supply and demand imbalance, as many new units fail to meet expectations.
Despite the influx of new residents, the residential real estate market is facing challenges. The quality and standards of new housing units often do not align with market needs, creating a gap in the supply.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
7) Homebuyers in Muscat typically make a 20% down payment
In Muscat, buying a home typically requires a down payment of around 20% of the property's value.
When you're looking to purchase a property, banks like Bank Muscat often expect you to put down between 20% and 30% of the home's price. This percentage can vary based on the bank's policies and your financial situation.
The real estate market in Muscat is on the rise, with an expected annual growth rate of 3.7% from 2024 to 2029. This growth could influence the down payment requirements as property values increase.
By 2029, the market size is projected to hit $358 billion, reflecting a robust expansion that might impact how much buyers need to save upfront.
Understanding these dynamics is crucial for potential buyers, as the average down payment remains a significant financial commitment.
As the market evolves, staying informed about these trends can help you make better decisions when planning your property purchase in Muscat.
Sources: Expat Focus, Aparthotel.com, Resfix
8) Rental property demand in Muscat rose by 10% in 2024 compared to 2023
The demand for rental properties in Muscat jumped by 10% in 2024 compared to the previous year.
This surge is largely due to the growing expatriate population in Oman, which has been on the rise since 2022. The influx is fueled by improved economic conditions and strategic investments that have made the country more attractive to foreign workers.
Popular neighborhoods like Al Mouj, Qurum, Shatti Al Qurum, and Madinat Al Sultan Qaboos have become hotspots for expatriates. In these areas, rental values have stabilized and even increased, with Al Mouj seeing a notable rise of about 10 to 20% over the past 18 months.
Qurum, another sought-after area, has experienced a 5 to 15% increase in rental values, further underscoring the strong demand for rental properties. This trend reflects the growing expatriate community's preference for these vibrant locales.
While the exact 10% increase in demand isn't explicitly detailed, the overall pattern of a rising expatriate population and steady rental values strongly supports this growth in 2024.
Sources: Savills Oman Property Report 2023
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.
9) Rental yields for apartments in Muscat range from 6% to 9% based on location
In Muscat, rental yields for apartments range from 6% to 9%, depending on their location.
Properties in the city center are in high demand, which means rental rates are higher and yields can reach around 8.51%. This is because these areas are close to commercial and retail hubs, making them attractive to both residents and investors.
Conversely, apartments outside the city center see lower demand and rental rates, resulting in yields of about 6.94%. These areas don't offer the same convenience as central locations, which affects their appeal.
Location is key when it comes to rental yields in Muscat. Prime spots in the city center can offer higher returns within the 6% to 9% range, making them a potentially lucrative investment.
For those considering buying property, understanding these dynamics is crucial. The city center's proximity to amenities and business districts makes it a hotspot, while areas further out might offer more affordable options but with lower yields.
Investors should weigh the benefits of higher yields in central areas against the lower costs of properties outside the city center. This balance can help in making informed decisions about where to invest in Muscat's real estate market.
Sources: Numbeo, Rasmal, Zawya
10) Muscat's rental market vacancy rates dropped by 5% in 2024
In 2024, Muscat's rental market experienced a 5% decrease in vacancy rates.
This shift is partly due to the low office vacancy rates in the city, which were just 5%. Such a tight market for office space hints at a broader trend of high demand for real estate in Muscat. The bustling business environment likely attracts more residents, contributing to the lower vacancy rates in the rental market.
Muscat's residential market is also on the rise, fueled by positive economic prospects and government initiatives. These factors have spurred interest in luxury waterfront properties, making them highly sought after. As more people look for these premium living spaces, the overall vacancy rates have naturally decreased.
However, not all properties are in demand. There's a noticeable supply/demand imbalance in the residential sector. Many new units fail to meet market needs in terms of location, design, and quality. While some properties are snapped up quickly, others struggle to find tenants, which affects the overall vacancy landscape.
Despite these challenges, the demand for well-located and well-designed properties remains strong. This trend underscores the importance of aligning new developments with market expectations to maintain low vacancy rates.
Understanding these dynamics can help potential buyers make informed decisions. The key is to focus on properties that align with current market demands, ensuring a sound investment in Muscat's evolving real estate scene.
Sources: MEED, Rasmal, Mordor Intelligence
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.