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
If you are thinking about buying a property in Muscat, you probably want to know how the real estate market is doing right now.
We update this blog post regularly with the latest data, market signals, and local insights so you always have fresh information about housing prices in Muscat and what is happening on the ground.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Muscat.
How's the real estate market going in Muscat in 2026?
What's the average days-on-market in Muscat in 2026?
As of early 2026, residential properties in Muscat typically stay on the market for around 60 to 120 days, depending heavily on the location and whether the property is in a foreigner-friendly development like Al Mouj or Muscat Hills.
Most listings in Muscat fall within a 45 to 150 day range, with prime properties in Integrated Tourism Complexes selling faster (often under 90 days), while homes outside these zones or those priced above market can sit for 150 days or more.
Compared to two years ago, days-on-market in Muscat has actually shortened slightly because the strong 18.7% price growth in 2025 brought more serious buyers into the market, although the overall pace remains slower than high-volume markets like Dubai.
Are properties selling above or below asking in Muscat in 2026?
As of early 2026, most residential properties in Muscat sell at around 95% to 100% of the asking price, meaning sellers typically accept a discount of 0% to 5% in prime areas and 5% to 10% in mainstream locations.
We estimate that roughly 70% to 80% of properties in Muscat sell at or below asking price, with above-asking sales being relatively rare and mostly limited to the best-positioned units in high-demand developments, though this figure is based on observed market patterns rather than official statistics.
Bidding wars and above-asking sales are most common in Muscat's Integrated Tourism Complexes like Al Mouj, particularly for waterfront apartments with marina views or newly released phases where supply is limited and foreign buyer demand is concentrated.
By the way, you will find much more detailed data in our property pack covering the real estate market in Muscat.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Oman. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Muscat?
What property types dominate in Muscat right now?
In Muscat, apartments make up roughly 50% to 55% of available residential listings, villas and standalone houses account for about 30% to 35%, and townhouses represent the remaining 10% to 15%, with the mix shifting depending on whether you are looking in master-planned communities or traditional neighborhoods.
Apartments are the single largest property type in Muscat's real estate market, especially in areas popular with expats and young professionals such as Al Khuwair, Al Ghubra, and the coastal developments.
Apartments became so dominant in Muscat because they offer more affordable entry points (starting around 50,000 to 80,000 OMR), align with the rental needs of Oman's large expatriate workforce, and fit well within the master-planned Integrated Tourism Complexes where foreigners are allowed to buy.
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 properties make up an estimated 30% to 40% of residential listings in Muscat right now, with most of this supply concentrated in specific master-planned communities rather than spread evenly across the city.
As of early 2026, the highest concentration of new-build developments in Muscat can be found in Al Mouj (which continues to expand its residential phases), Muscat Hills, Jebel Sifah, AIDA, and the emerging Sultan Haitham City project which will add significant supply in coming years.
Get fresh and reliable information about the market in Muscat
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which neighborhoods are improving fastest in Muscat in 2026?
Which areas in Muscat are gentrifying in 2026?
As of early 2026, the neighborhoods in Muscat showing the clearest signs of gentrification are Al Khuwair (where the massive USD 1.3 billion downtown waterfront project is underway), Al Ghubra (with continuous retail and residential upgrades), and pockets of Bawshar near new commercial developments.
In Al Khuwair specifically, you can see the arrival of new international-standard retail, the construction of mixed-use towers, improvements to the waterfront area, and an influx of professional tenants attracted by proximity to government ministries and modern amenities, while Al Ghubra has seen new restaurant clusters and upgraded apartment buildings replacing older stock.
Properties in these gentrifying areas of Muscat have appreciated by an estimated 15% to 25% over the past two to three years, with Al Khuwair benefiting from announcement effects tied to the Zaha Hadid-designed downtown project and Al Ghubra seeing steady gains from improving livability.
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 early 2026, the areas in Muscat seeing the biggest demand boost from infrastructure projects are Al Khuwair (due to the downtown waterfront development), the corridor around Sultan Haitham City, and zones near the planned Oman Rail Network connections.
The specific projects driving demand include the USD 1.3 billion Al Khuwair Downtown and Waterfront Development designed by Zaha Hadid Architects (featuring a marina, canal walkway, and 35 to 40 floor towers), the multi-phase Sultan Haitham City expansion, and the long-term Oman Rail Network which will eventually connect Muscat to Sohar and Duqm.
Al Khuwair Downtown's detailed design phase began in 2025 with construction expected to progress over the next five to seven years, while Sultan Haitham City is delivering residential phases on a rolling basis through 2026 and beyond, and the Oman Rail Network is a longer-horizon project extending past 2030.
In Muscat, properties near announced infrastructure projects typically see a 5% to 10% price bump at announcement, with an additional 10% to 20% appreciation as construction becomes visible and completion approaches, though gains depend heavily on the project's actual progress and perceived impact.
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.
What do locals and insiders say the market feels like in Muscat?
Do people think homes are overpriced in Muscat in 2026?
As of early 2026, local sentiment in Muscat is mixed: many buyers acknowledge prices have risen sharply (up nearly 19% in one year) but most still consider Muscat more affordable than Dubai or Doha, so the "overpriced" label applies more to specific listings than to the market as a whole.
When locals argue homes are overpriced in Muscat, they typically point to asking prices that have jumped faster than rents, service charges in ITCs that add 500 to 2,000 OMR per year on top of the purchase price, and the fact that some sellers are testing aggressive price points that do not reflect actual transaction values.
Those who believe prices are fair in Muscat counter that official data shows strong transaction volumes (over 2.3 billion OMR by Q3 2025), that demand from both expats and Omanis remains solid, and that Muscat still offers 20% to 35% lower prices per square meter than comparable Gulf capitals.
Muscat's price-to-income ratio is relatively high for locals (homes often cost 10 to 15 times average annual income), but this is partly offset by no property taxes, no income taxes, and lower overall living costs compared to the UAE or Qatar.
What are common buyer mistakes people regret in Muscat right now?
The most frequently cited buyer mistake in Muscat is assuming you can buy anywhere as a foreigner, when in reality non-Omanis can only purchase in Integrated Tourism Complexes like Al Mouj or Muscat Hills, and attempting to buy outside these zones simply will not work legally.
The second most common regret is underestimating ongoing costs in Muscat's ITCs, particularly service charges (which range from 500 to 2,000 OMR per year), HOA rules that may restrict short-term rentals, and future construction phases that can block views or add noise for years.
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.
Get the full checklist for your due diligence in Muscat
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Muscat in 2026?
Do foreigners face extra challenges in Muscat right now?
Foreigners buying property in Muscat face a moderate difficulty level compared to locals: the main hurdle is that foreign ownership is restricted to specific Integrated Tourism Complexes, which limits your choice to a handful of developments rather than the entire city.
The key legal restriction for foreign buyers in Muscat is that you can only purchase in government-approved ITCs such as Al Mouj, Muscat Hills, Muscat Bay, or Jebel Sifah, with freehold or long-term usufruct rights (up to 99 years) available depending on the project.
Practical challenges foreigners encounter in Muscat include navigating document attestation requirements (all foreign documents need Omani embassy authentication), dealing with a registration process that can take several weeks, and finding that many local agents and developers communicate primarily in Arabic with limited English-language contract support.
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 early 2026, mortgage financing is available to foreign buyers in Muscat, but it is much easier to obtain if you are an Oman resident with a local salary transfer, while non-residents face stricter requirements and often need to prepare for a cash purchase.
Foreign buyers in Muscat can typically expect loan-to-value ratios of 50% to 70% (meaning a 30% to 50% down payment), with interest rates ranging from 5% to 7.5% depending on residency status, relationship with the bank, and the specific ITC where the property is located.
Banks in Muscat like Bank Muscat, National Bank of Oman, and HSBC Oman generally require foreign applicants to provide six months of bank statements, proof of stable income (at least three times the monthly mortgage payment), employment contracts, valid residency documentation, and sometimes source-of-funds verification.
You can also read our latest update about mortgage and interest rates in Oman.
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 risky is buying in Muscat compared to other nearby markets?
Is Muscat more volatile than nearby places in 2026?
As of early 2026, Muscat shows lower price volatility than Dubai but slightly more than Abu Dhabi, with price swings that are generally moderate because the market is smaller, less speculative, and more driven by end-users than by short-term investors.
Over the past decade, Muscat experienced a significant correction from 2015 to 2020 (when prices fell roughly 15% to 25% depending on the segment), followed by stagnation and then a sharp recovery of nearly 19% in 2025, whereas Dubai has seen more dramatic boom-bust cycles with swings of 30% or more in either direction during similar periods.
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 has shown moderate resilience during economic downturns, with property values typically declining less severely than in Dubai but taking longer to recover due to lower liquidity and fewer speculative buyers to drive rebounds.
During the most recent downturn (triggered by the 2015 oil price crash and extended through COVID), Muscat property prices dropped an estimated 15% to 25% peak-to-trough, with full recovery taking about five to six years, finally materializing with the strong 2025 rebound.
The property types and neighborhoods in Muscat that have historically held value best during downturns are well-located apartments in Al Mouj and Muscat Hills (where foreign demand provides a floor), family villas in established areas like Qurum and Shatti Al Qurum, and any property with genuine waterfront access or unique positioning.
Get to know the market before you buy a property in Muscat
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How strong is rental demand behind the scenes in Muscat in 2026?
Is long-term rental demand growing in Muscat in 2026?
As of early 2026, long-term rental demand in Muscat is growing steadily at an estimated 3% to 5% annually, driven by continued economic diversification, a stable expatriate workforce, and limited new housing supply relative to population growth.
The tenant demographics driving long-term rental demand in Muscat include expatriate professionals (particularly from South Asia, the Philippines, and Western countries), Omani families seeking modern amenities, and employees of international companies and government contractors who prefer to rent in well-serviced areas.
The neighborhoods with the strongest long-term rental demand in Muscat right now are Al Mouj (commanding premium rents with 6% to 7% quarterly increases), Al Khuwair (popular with professionals near government offices), Muscat Hills, and Al Ghubra (offering good value in a central location).
You might want to check our latest analysis about rental yields in Muscat.
Is short-term rental demand growing in Muscat in 2026?
Oman does not currently impose heavy restrictions on short-term rentals like some European cities, but individual ITC developments may have their own community rules limiting Airbnb-style lettings, so buyers should check specific HOA regulations before purchasing for short-term rental purposes.
As of early 2026, short-term rental demand in Muscat is growing moderately, supported by an 11% increase in 3 to 5 star hotel guests through late 2025 and a government target to attract 6 million tourists annually by 2030.
AirDNA data shows Muscat's short-term rental market has an average occupancy rate of around 55% to 65%, with peak seasons (October through March) seeing higher rates and summer months slower due to extreme heat.
The guest demographics driving short-term rental demand in Muscat include regional tourists from the UAE and Saudi Arabia (especially during summer seeking cooler coastal weather), European visitors during winter months, and business travelers attending conferences or working on project assignments.
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?
What's the 12-month outlook for demand in Muscat in 2026?
As of early 2026, the 12-month demand outlook for residential property in Muscat is positive, with steady buyer interest expected to continue thanks to strong economic fundamentals, ongoing infrastructure investment, and relatively affordable pricing compared to neighboring Gulf capitals.
The key factors most likely to influence demand in Muscat over the next 12 months include oil price movements (which affect government spending and confidence), the pace of Vision 2040 economic diversification, interest rate trends from the Central Bank of Oman, and the rollout of new residential phases in popular ITCs.
Based on current momentum and expert forecasts, Muscat property prices are expected to increase by 5% to 10% over the next 12 months, with apartments in prime ITCs potentially outperforming and mainstream areas seeing more modest gains in the 3% to 5% range.
By the way, we also have an update regarding price forecasts in Oman.
What's the 3 to 5 year outlook for housing in Muscat in 2026?
As of early 2026, the 3 to 5 year outlook for housing in Muscat is moderately bullish, with annual price growth of 5% to 8% expected as population grows toward 2.2 million by 2035 and housing supply struggles to keep pace with demand.
The major development projects expected to shape Muscat over the next 3 to 5 years include Sultan Haitham City (a massive new urban node adding thousands of housing units), the Al Khuwair Downtown waterfront project, ongoing Al Mouj expansions, and new ITC phases at AIDA and Yiti Sustainable City.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Muscat is a prolonged oil price collapse below 60 USD per barrel, which would strain government finances, reduce infrastructure spending, dampen consumer confidence, and potentially trigger a correction in property values.
Are demographics or other trends pushing prices up in Muscat in 2026?
As of early 2026, demographic trends are a meaningful driver of housing prices in Muscat, with the city's population expected to grow from 1.6 million to 2.2 million by 2035 while housing supply additions remain limited at around 5,000 to 6,000 units per year.
The specific demographic shifts affecting prices in Muscat include continued expatriate workforce growth (foreigners make up roughly 44% of Oman's population), urbanization pulling Omanis from rural areas into the capital, and a young median age (under 32) creating a wave of first-time household formation.
Beyond demographics, prices in Muscat are also being pushed by the concentration of foreign buyer demand into a limited number of ITCs (creating scarcity in the only zones where expats can buy), growing tourism driving short-term rental returns, and government infrastructure investment improving livability in targeted areas.
These demographic and trend-driven price pressures are expected to continue in Muscat for at least the next 5 to 10 years, as long as Oman's economic diversification stays on track and the expatriate population remains stable or grows.
What scenario would cause a downturn in Muscat in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Muscat is a sharp and sustained drop in oil prices (below 50 to 60 USD per barrel for more than 12 months), combined with tighter credit conditions and a pullback in government infrastructure spending.
Early warning signs that such a downturn is beginning in Muscat would include rising days-on-market (above 150 days becoming the norm), transaction volumes falling for two or more consecutive quarters, developers offering significant discounts on new launches, and an uptick in rental vacancy rates in popular expat areas like Al Mouj.
Based on historical patterns, a realistic downturn in Muscat could see prices decline 10% to 20% from peak levels over 18 to 24 months, with recovery taking 3 to 5 years, similar to what happened after the 2015 oil price crash but potentially less severe if Oman's diversification efforts provide more economic cushion.
Make a profitable investment in Muscat
Better information leads to better decisions. Save time and money. Download our guide.
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 It's Authoritative | How We Used It |
|---|---|---|
| National Centre for Statistics and Information (NCSI) | This is Oman's official statistics agency and the closest thing to a source of truth for national market indicators. | We used NCSI data to ground our market momentum analysis in official transaction values and price index movements. We treated private reports as context only after they matched NCSI directionally. |
| International Monetary Fund (IMF) | The IMF is a top-tier international institution with rigorous macro analysis and access to government data. | We used the IMF's 2025 Article IV report on Oman to anchor our 12-month and 3 to 5 year macro outlook assumptions. We also used it to stress-test downside scenarios involving oil price shocks. |
| Savills Oman | Savills is a globally recognized real estate consultancy with structured, repeatable research methodology. | We used Savills reports for neighborhood-level rent signals in Al Mouj, Al Khuwair, and Muscat Hills. We cross-referenced their data with NCSI to identify where demand is strongest. |
| Cavendish Maxwell | This is a well-known regional real estate advisory that publishes structured market research across the Gulf. | We used their reports to describe Oman's housing stock composition and demographic drivers. We treated their findings as a cross-check against official NCSI signals. |
| Ministry of Housing and Urban Planning (MHUP) | This is the official government ministry responsible for housing policy and urban development in Oman. | We used MHUP project pages and legal documents to confirm where foreigners can buy, identify major infrastructure projects, and track new supply pipelines. |
| Central Bank of Oman (CBO) | The central bank is authoritative on credit conditions and macro risks that affect housing affordability and demand. | We used CBO annual reports to frame mortgage and credit availability conditions. We treated it as the macro sanity check behind our demand assumptions. |
| AirDNA | AirDNA is a recognized short-term rental data provider with transparent methodology for occupancy and revenue metrics. | We used AirDNA to estimate short-term rental occupancy and revenue levels in Muscat. We treated it as market intel and cross-checked it against official tourism growth data. |
| Dubai Land Department | This is the official land authority for Dubai, providing reliable price index data for a key regional comparator market. | We used Dubai's residential price index only as a volatility benchmark versus Muscat. We did not use Dubai numbers to predict Muscat, just to contextualize risk. |
| Bank Muscat | This is Oman's largest bank and its official product pages are the primary source for advertised mortgage terms. | We used Bank Muscat's loan page to confirm that home loan products exist and to identify typical tenors and rates. We added practical notes about foreigner eligibility based on regional underwriting patterns. |
| Al Tamimi & Company | This is a leading regional law firm with detailed legal analysis on foreign ownership rules in Oman. | We used their legal articles to clarify ITC ownership frameworks, usufruct rights, and recent regulatory updates affecting foreign buyers. |
Related blog posts