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 property market by 2025? Curious about the emerging trends that could influence your decision? Want to know which areas are set to boom and which might not be worth your investment?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
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) Eased property laws for expatriates will boost foreign investment in Muscat real estate
The easing of property ownership laws for expatriates has significantly boosted foreign investment in Muscat's residential real estate.
In recent years, foreigners have been able to purchase 100% of their chosen plots in Integrated Tourism Complexes (ITCs) like Al Mouj and Muscat Hills. This change has made these areas particularly attractive to international buyers, transforming them into vibrant communities with a mix of cultures and lifestyles. The appeal of these locations is not just in their scenic beauty but also in the lifestyle amenities they offer, such as golf courses, marinas, and luxury shopping.
Resolution 357/2020 has further expanded opportunities by allowing foreigners to buy flats in multi-story buildings outside ITC areas. This has opened up the market significantly, leading to a noticeable increase in property sales to non-Omani buyers. The demand for such properties is driven by expatriates looking for long-term residence options, contributing to the growth of the Oman Residential Real Estate Market.
The market, valued at USD 4.38 billion in 2024, is expected to grow at a CAGR of 9.19%, reaching USD 6.80 billion by 2029. This growth is largely fueled by the increasing demand for rented accommodation, as more expatriates choose to live and work in Oman. The influx of foreign residents is not only boosting the real estate market but also enhancing the local economy by increasing demand for goods and services.
The Foreign Capital Investment Law (FCIL) is another game-changer, allowing 100% foreign ownership over investment projects. This law provides usufruct rights over real estate in designated locations, making it easier for foreign investors to enter the market. These legal reforms have been pivotal in attracting foreign capital, as they offer security and clarity to investors.
Economic reports consistently link these legal changes to the surge in foreign investment, highlighting the FCIL and Resolution 357/2020 as key factors. The combination of these reforms has created a more welcoming environment for international buyers, encouraging them to invest in Oman's real estate market. This trend is particularly notable in areas with high expatriate populations, where the demand for quality housing continues to rise.
Sources: Tamimi, Mordor Intelligence, Trimont
2) Rental yields in central Muscat will rise with growing demand for city living
Rental yields in central Muscat are on the rise as more people opt for city living.
In recent years, Muscat has become a hotspot for property investment. Areas like Al Mouj and Qurum have seen property prices soar, with rental values jumping by 10 to 20% in Al Mouj and 5 to 15% in Qurum. These neighborhoods are popular due to their central locations and modern amenities, making them attractive to both locals and expatriates.
The expatriate community in Muscat is booming. From 2022 to 2023, there was a 33% increase in the expatriate population, which has fueled the demand for rental properties in the city center. This influx has not only stabilized rental values but also spurred growth, making central Muscat a prime spot for investors looking for reliable returns.
Government initiatives are also playing a part in this trend. The Vision 2040 plan is a major push to diversify the economy and reduce reliance on oil. With significant investments in infrastructure and tourism, the plan is set to increase property demand, especially in central Muscat where new commercial and retail spaces are emerging.
For those considering investing in Muscat, the city offers a promising landscape. The combination of a growing expatriate population, rising property prices, and government-backed development projects makes central Muscat a compelling choice. Investors are particularly drawn to the potential for increased rental yields as demand for city living continues to grow.
Sources: Mordor Intelligence, CBNME, Zawya
Everything you need to know is included in our Property Pack for Muscat
3) Suburban property prices will drop due to oversupply.
In some suburban areas of Muscat, property prices are slightly declining due to an oversupply of homes.
Picture this: Muscat has about 87,000 unoccupied residential units, making up nearly 20% of the total housing supply. This means there are more homes than buyers, creating a surplus. The National Center for Statistics and Information highlights this as a key factor in the price drop.
Construction is booming, especially in suburban areas, with many new developments aimed at the rental market. These are mostly low to moderate-grade apartments with few amenities. But here's the catch: demand is falling, partly because fewer expatriates are moving in and travel restrictions are in place.
Over the past 15 months, the residential real estate market in Oman has seen a noticeable dip in demand. This has led to a 12.9% drop in apartment prices and a 6.5% decline in other home prices. The oversupply is clearly affecting property values.
Market reports show that the general index of residential real estate prices in Oman fell by 1.9% in Q3 2024 compared to the previous year. This trend is a direct result of the oversupply issue.
So, if you're considering buying property in Muscat, keep an eye on these trends. The current market conditions might offer opportunities, especially if you're looking for a bargain in suburban areas.
Sources: Muscat Daily, Mordor Intelligence
4) Affordable housing rents will rise as demand grows from the expanding workforce
Muscat's job market is booming, with over 853,000 Omanis employed in 2023, a 6.4% increase from last year.
This surge in employment includes a 7% rise in expatriates, all looking for places to live. Popular areas like Al Mouj and Qurum are seeing a spike in rental demand, thanks to these newcomers.
Government efforts to diversify the economy and attract skilled workers are paying off, aligning with Oman’s Vision 2040. This strategy is drawing more people to Muscat, further boosting the housing market.
New businesses and industries are popping up, creating even more job opportunities. This growth is pushing the demand for housing even higher, especially in urban areas with great amenities.
People are flocking to city life, preferring communities that offer quality living conditions. This trend is making urban housing more sought after than ever.
Sources: Times of Oman, CBNME, Trading Economics
5) Expatriate professionals will drive up rental property demand in central Muscat
Muscat is seeing a surge in expatriate professionals moving to the city.
In 2023, the number of expatriates in Oman jumped by 11.1%, bringing the total to over 2.2 million. This trend is expected to continue, with projections suggesting a further increase of 2.4 million by 2040, especially in Muscat.
Muscat's economy is branching out from its traditional oil and gas roots, with new growth in logistics, manufacturing, and international business. This shift is creating more job opportunities, drawing even more expatriates to the area.
Government initiatives are also making Muscat a hotspot for foreign investment and employment. The city's strategic location, along with its modern office spaces and networking opportunities, is attracting international companies, which in turn is boosting demand for rental properties.
International and local organizations are setting up shop in Muscat, further fueling the influx of expatriates. This presence is a key factor in the rising demand for housing in central areas.
Sources: Times of Oman, Muscat Daily, Regus
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6) Affordable housing yields will rise with growing demand from expatriate workers
Muscat is seeing a surge in expatriate workers, especially in 2023 and 2024.
This increase, marked by a 1.2% rise in the foreign workforce, is largely due to the booming private sector. As more expatriates flock to Muscat, the demand for housing, particularly affordable options, is naturally on the rise.
Government policies are a big part of this story. In 2025, Oman revamped its labor market regulations, making it more appealing for expatriates to settle in the country. These updates, including changes to work visas and health insurance, are expected to attract even more foreign workers to Muscat.
Despite a previous dip in rental values when expatriate numbers fell, the appetite for affordable housing remains strong. Reports of housing shortages in popular expatriate areas highlight this unmet demand.
Real estate market analyses are predicting growth in the affordable housing sector, driven by the increasing need among expatriates for such options. This trend is particularly evident in areas favored by foreign workers.
As the demand for rental properties, especially affordable ones, is expected to rise, investors might find opportunities in this sector. The affordable housing market is poised for growth as more expatriates make Muscat their home.
Sources: Zawya, Nairametrics, Global Property Guide
7) Muscat residential property prices will rise moderately as the economy stabilizes
In 2025, residential property prices in Muscat are set to rise moderately as the economy finds its footing.
Oman's economy is on the upswing, with GDP growth projected at 3.10% in 2025. This economic stability is a green light for real estate, making it a good time to consider buying property. The buzz isn't just local; there's a noticeable uptick in foreign investment from the GCC region, which is pushing property prices up as investors eye the promising market.
The Omani government's Vision 2040 is a game-changer, aiming to diversify the economy beyond oil. This plan is not just talk; it includes hefty investments in infrastructure and tourism, which are drawing more people and businesses to Muscat. As these projects roll out, the demand for property is naturally climbing.
Muscat is also seeing some exciting urban development projects, like the Muttrah Development Project and Sultan Qaboos Port Waterfront. These aren't just any projects; they're transforming the cityscape and making certain areas more appealing, which in turn boosts property values. Plus, new visa policies are in play, offering long-term residency permits for investors, which is a big draw for expatriates and foreign investors.
These changes are not just about numbers; they're reshaping the city's vibe. The new developments and policies are making Muscat a more attractive place to live and invest. As more expatriates and businesses move in, the demand for residential properties is set to rise.
So, if you're thinking about buying property in Muscat, now might be the time to act. The combination of economic growth, foreign investment, and urban development is creating a perfect storm for property value increases.
Sources: Trading Economics, Zawya, Kanebridge News ME
8) Rents in central Muscat will increase because supply is low and demand is high
Property prices in central Muscat are on the rise, especially in popular areas like Al Mouj and Qurum.
One of the main reasons for this increase is the growing number of expatriates moving to Muscat. By 2040, the city is expected to welcome over a million new residents, making it the fastest-growing governorate in Oman. This influx is driving up the demand for rental properties.
However, the supply of new housing developments in central Muscat isn't keeping up. While some lower-grade residential units have been introduced, high-quality properties in prime locations remain scarce. This mismatch between supply and demand is pushing rental prices higher.
In areas like Al Mouj, rents have jumped by 10 to 20% in the last 18 months. High occupancy rates are a clear sign of the strong demand, and with limited new developments, this trend is likely to continue.
For those considering buying property in Muscat, it's important to understand that the market is competitive. The limited availability of desirable properties means that prices are expected to keep climbing.
Investors should be aware that central Muscat's rental market is under pressure due to the high demand and limited supply. This situation is creating opportunities for those who can secure properties in these sought-after areas.
Sources: Times of Oman, Savills Oman Research
Everything you need to know is included in our Pack for Muscat
9) Eco-friendly home demand will surge as buyers become more environmentally aware
In Muscat, there's a growing trend towards eco-friendly homes.
Back in 2024, the demand for sustainable buildings surged, driven by the city's push to reduce carbon footprints. A prime example is the opening of Sustainable City Yiti in 2023, featuring 136 villas designed for Net Zero Emissions. This development reflects the city's commitment to sustainability.
Buyers are increasingly interested in sustainable products, a trend seen across various demographics. The real estate market has adapted, with more listings now highlighting eco-friendly features. By 2025, tech-smart, energy-efficient apartments and larger suburban homes with outdoor spaces became key drivers of demand and pricing.
Media coverage has amplified this shift, focusing on the benefits of sustainable living. In 2024, guides and articles educated buyers and sellers on the advantages of eco-friendly homes. This awareness has been crucial in transforming consumer preferences.
Government incentives introduced in 2023 have further encouraged green building practices. These incentives support the development of sustainable communities like Yiti, making eco-friendly living more accessible and attractive.
As environmental awareness grows, the demand for eco-friendly homes is expected to rise. This trend is reshaping the real estate landscape in Muscat, with sustainability becoming a central focus for both developers and buyers.
Sources: Green Muscat, The Madrona Group, Muscat Daily
10) Wellness focus will drive demand for properties near green spaces
In Muscat, there's a noticeable trend towards wellness-focused real estate developments.
Places like Al Mouj and Muscat Bay are leading the way, offering luxurious living with green spaces and outdoor amenities. This isn't just about luxury; it's about a lifestyle that promotes health and well-being. People are increasingly drawn to homes that offer a slice of nature, reflecting a broader interest in properties that support a healthy lifestyle.
Consumer surveys reveal that green spaces are a top priority for many buyers. The Global Wellness Institute emphasizes the importance of designing communities with accessible green areas. Health-conscious buyers are particularly keen on these features, as they recognize the benefits of living close to nature.
Media coverage has played a role in raising awareness about the perks of living near green spaces. More people now appreciate how nature can boost physical, social, and emotional well-being. This has led developers to focus more on incorporating parks and natural areas into their projects.
Research consistently shows that access to green spaces is linked to better mental and physical health. This connection is a major reason why there's a growing demand for properties with these features. People are looking to enhance their overall well-being by choosing homes that offer a natural environment.
Sources: Global Wellness Institute, JLL
11) Luxury property prices will stay stable due to ongoing demand from wealthy buyers
In Muscat, luxury property prices have stayed stable thanks to ongoing interest from wealthy buyers.
One standout example is the launch of AIDA, a gated community with a Trump golf course, which drew in affluent buyers even after COVID-19 hit. This shows the luxury real estate market is thriving. The buzz around AIDA is just one piece of the puzzle, as Muscat's luxury market continues to attract high-net-worth individuals.
Transaction volumes are impressive too. When Golf Beach Residences, a collection of ultra-luxury villas and mansions, hit the market, about 300 flats sold out in just 48 hours. This rapid sale underscores the strong demand in Muscat's luxury segment. Real estate agencies are also seeing a surge in interest from foreign investors, with developments like the Nikki Beach Resort & Spa Muscat winning awards for design and construction.
Government policies have made it easier for foreigners to own property, boosting international investment. This change has been a game-changer, drawing more global buyers into Muscat's luxury market. The limited supply of luxury properties compared to demand is another factor keeping prices stable. In areas like Qurum, limited housing stock is expected to drive up prices due to its prime location and upcoming renovations to heritage buildings.
Muscat's appeal isn't just about the properties themselves. The city offers a unique blend of modern luxury and cultural heritage, making it a desirable place for high-net-worth individuals. The combination of government support, limited supply, and international interest is a recipe for continued stability in luxury property prices.
For those considering investing in Muscat, the market's resilience and the city's charm make it an attractive option. With ongoing demand and strategic government policies, Muscat's luxury real estate market is poised for steady growth.
Sources: Mordor Intelligence, Kanebridge News ME
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12) Luxury property rents will rise as they attract more expatriate professionals
Muscat is seeing a surge in demand for luxury homes.
More expatriate professionals are moving to Oman, boosting the luxury real estate market. These high-income individuals are attracted by the country's economic opportunities, which have been expanding since 2019. The influx of these professionals is a key driver behind the rising demand for upscale accommodations.
Oman's strategy to diversify its economy beyond oil is another factor drawing foreign talent. The country is focusing on growing sectors like tourism and real estate, making it an attractive place for expatriates. This shift is increasing the appeal of luxury properties as more people look to settle in Oman.
In the real estate market, rents and land prices are climbing, particularly in the luxury segment. This trend is fueled by the influx of expatriates and the country's economic diversification efforts. As a result, luxury properties are becoming more sought after.
For those considering buying property in Oman, it's important to note that the luxury segment is experiencing significant growth. This is largely due to the increased presence of expatriate professionals and the country's focus on non-oil sectors.
With the ongoing economic changes, Muscat's luxury real estate market is poised for continued growth. The combination of a growing expatriate community and economic diversification is creating a vibrant market for high-end properties.
Sources: World Bank, Kanebridge News
13) Demand for Al Mouj will surge due to its waterfront lifestyle and amenities
Al Mouj in Muscat is gaining popularity for its unique waterfront lifestyle and amenities.
In recent years, property prices in Al Mouj have been noticeably higher than in other areas, reflecting a strong demand for luxury living. For example, a one-bedroom apartment here costs more than in Muscat Hills or Qurum, showing that people are willing to pay extra for the lifestyle.
The neighborhood has seen a surge in sales and rental inquiries, especially with new luxury communities like the Golf Beach Residences. These properties are in high demand, underscoring Al Mouj's appeal. The area also enjoys high occupancy rates, thanks to its well-planned community featuring oceanfront homes, dining, retail, and leisure amenities.
Al Mouj offers a wide range of amenities that boost its desirability. It has the largest marina in the country, a championship golf course, lush green spaces, and plenty of shopping and dining options. These features enhance residents' quality of life, making it a sought-after place to live.
Insider knowledge suggests that the marina is a major draw for boating enthusiasts, while the golf course attracts both locals and tourists. The community's design promotes a balanced lifestyle, combining relaxation with activity.
With its strategic location and comprehensive amenities, Al Mouj is set to see increased demand as more people seek a premium lifestyle by the water.
Sources: Al Mouj News, Mordor Intelligence, Skyland Oman
14) Young population growth boosts demand for modern urban apartments
The young population in Muscat is a major driver for the demand for modern apartments in urban areas.
In 2024, Muscat's population was around 1.67 million, with a large chunk being young people. Kids aged 0-14 made up 26.82% of the population, while those aged 15-24 accounted for 12.27%. This youthful demographic is increasingly looking for modern living spaces as they grow older and seek independence.
Urbanization in Oman is on the rise, with a 7.27% urban population growth rate in 2023. This means more people are flocking to cities, especially Muscat, in search of better opportunities. Young professionals are particularly attracted to the city for its job prospects, which in turn boosts the demand for contemporary apartments.
Real estate developers in Muscat are catching on to this trend, focusing on creating new developments that cater to young professionals. These projects often feature modern amenities and lifestyle perks that appeal to the younger crowd. Even with some markets experiencing an oversupply, there's a consistent demand for new apartments, showing a clear shift towards apartment living among the youth.
Muscat's real estate market is adapting to these changes by offering properties that meet the expectations of a younger demographic. The focus is on providing spaces that are not just homes but also lifestyle hubs, complete with the latest conveniences and community features.
As the young population continues to grow, the demand for modern apartments in urban areas like Muscat is expected to remain strong. This trend is shaping the future of the city's housing market, making it an exciting time for potential buyers and investors.
Sources: World Population Review, Trading Economics, NAAHQ, Global Media Insight
Everything you need to know is included in our Property Investment Pack for Muscat
15) New infrastructure projects will make previously inaccessible areas attractive to buyers
The government is heavily investing in infrastructure to make remote areas more accessible and attractive to buyers.
Take the new Khasab-Lima-Dibba road in Musandam, for example. This road is a game-changer, connecting remote areas to city centers and boosting tourism and trade. It's not just about roads; the expansion of the Dakhliyah-Muscat Road and the Adam-Haima-Thumrait dual carriageway are also making a big difference in accessibility.
Public transport is getting a major upgrade too. Muscat now has a light rapid rail transit system, similar to London's Docklands Light Railway, which cuts down the need for cars and opens up previously hard-to-reach areas. This is a big deal for anyone looking to buy property in these regions.
Then there's the Muscat metro project, which is a real game-changer. With 42 stations connecting key areas, it's making these places much more appealing to potential buyers. Imagine the convenience of hopping on a metro to get around the city!
These infrastructure projects are part of the Transportation and Logistics Strategy (2021–2025), which aims to improve connectivity and support balanced regional growth. It's all about making life easier and more convenient for everyone, especially those looking to invest in property.
Sources: AGBI, Oman Observer, Muscat Daily
16) Virtual reality tours will dominate property marketing and attract tech-savvy buyers
Virtual reality tours are revolutionizing property marketing, especially for those who love tech.
Back in 2023, a whopping 67% of home buyers wanted listings with virtual tours, and more than half wouldn't even look at a property without one. This trend is only getting stronger. Properties with virtual tours now get 87% more views and keep potential buyers interested for much longer.
In Muscat, the tech-savvy crowd is growing fast. With a young population and an impressive internet penetration rate of 96.4% as of 2023, many people are already comfortable with digital tech. Plus, since 100% of social media users access their favorite sites via mobile phones, VR tours have a huge potential audience.
The real estate industry is catching on. Listings with virtual tours are selling for 9% more and closing 31% faster than those without. This shows that virtual tours not only draw more interest but also lead to quicker sales. Real estate companies are investing more in VR tech to stay competitive and meet modern buyers' expectations.
Sources: Market.us, IstiZada, 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.