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
This guide breaks down the current rental yields in Muscat, covering apartments, villas, townhouses, and condos across different neighborhoods.
We update this blog post regularly to reflect the latest market data and trends in Muscat's residential property market.
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.
Insights
- The average gross rental yield in Muscat sits around 6.3% in early 2026, which is notably higher than many Gulf cities where prime property often yields below 5%.
- Yields in Muscat can swing from roughly 4% in premium coastal areas like Al Mouj to over 8% in value-focused districts like Ruwi, a spread of about 4 percentage points.
- Studios and one-bedroom apartments in Muscat typically deliver the highest gross yields at 6.5% to 8%, because their lower purchase prices attract a deep pool of single renters and young professionals.
- Muscat's coastal climate means landlords should budget around 0.6% to 1% of property value annually for maintenance, mainly due to air conditioning wear and humidity damage.
- Vacancy rates in prime Muscat neighborhoods like Al Mouj and Muscat Hills stay low at 4% to 7%, while older stock in weaker locations can see vacancy climb to 10% to 15%.
- Oman's new personal income tax, effective from January 2028, does not affect net rental yields in 2026, but investors should factor it into longer-term return calculations.
- The Madinat Al Irfan development near the Oman Convention and Exhibition Centre is expected to boost renter demand in surrounding areas like Al Ghubrah and Azaiba over the coming years.
- Full-service property management in Muscat typically costs 5% to 8% of annual rent, plus a tenant placement fee of around 50% to 100% of one month's rent when new tenants move in.
What are the rental yields in Muscat as of 2026?
What's the average gross rental yield in Muscat as of 2026?
As of early 2026, the average gross rental yield for residential property in Muscat is estimated at around 6.3%, mixing apartments, townhouses, villas, and condos together.
Most typical residential properties in Muscat fall within a gross yield range of roughly 4% to 8%, depending on location and property type.
Muscat's average gross yield of around 6.3% compares favorably to many other Gulf cities, where prime residential often yields below 5% due to high property prices.
The single most important factor influencing gross rental yields in Muscat right now is the significant price gap between prime lifestyle districts like Al Mouj and more affordable, demand-driven neighborhoods like Al Khuwair or Ruwi.
What's the average net rental yield in Muscat as of 2026?
As of early 2026, the average net rental yield for residential property in Muscat is estimated at around 4.9%, after accounting for typical landlord expenses.
The typical difference between gross and net rental yields in Muscat is roughly 1.4 percentage points, which covers vacancy, management, maintenance, and other recurring costs.
The expense category that most significantly reduces gross yield to net yield in Muscat is vacancy allowance combined with maintenance costs, especially given the high air conditioning usage and coastal humidity that accelerate wear on units.
Most standard investment properties in Muscat deliver net yields in the range of 3.5% to 6%, with the variation driven mainly by how well the property is managed and how much downtime it experiences between tenants.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Muscat in 2026?
In Muscat in 2026, a gross rental yield of around 5% to 7% is generally considered "good" by local investors, as it balances decent returns with reasonable tenant demand and property quality.
The threshold that typically separates average-performing properties from high-performing ones in Muscat is around 7% gross yield, though anything above this often comes with trade-offs like older buildings, less prestigious locations, or higher tenant turnover.
How much do yields vary by neighborhood in Muscat as of 2026?
As of early 2026, the spread in gross rental yields between Muscat's highest-yield and lowest-yield neighborhoods is roughly 4 percentage points, ranging from about 4% in prime areas to over 8% in value-focused districts.
The neighborhoods that typically deliver the highest rental yields in Muscat are value-priced districts with consistent renter demand, such as Ruwi, Al Amerat, and parts of Seeb like Al Mawaleh and Al Hail.
The neighborhoods that typically deliver the lowest rental yields in Muscat are premium lifestyle areas where purchase prices are high, such as Al Mouj (The Wave), Shatti Al Qurum, and Muscat Hills.
The main reason yields vary so much across Muscat neighborhoods is the significant difference in purchase prices between prime coastal or master-planned communities and more affordable, practical districts, even when rents don't differ as dramatically.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Muscat.
How much do yields vary by property type in Muscat as of 2026?
As of early 2026, gross rental yields in Muscat range from around 4.5% for villas and detached houses up to 8% or more for studios and one-bedroom apartments.
Studios and one-bedroom apartments currently deliver the highest average gross rental yield in Muscat, typically between 6.5% and 8%, because their lower purchase prices attract a deep pool of renters including singles, young couples, and professionals on short assignments.
Villas and detached houses currently deliver the lowest average gross rental yield in Muscat, often around 4.5% to 6%, because their high purchase prices in desirable locations outpace what landlords can charge in rent.
The key reason yields differ between property types in Muscat is that rent per square meter tends to decrease as units get larger, while purchase prices for bigger properties often rise disproportionately in prime areas.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Muscat?
- What rental yields can you expect for a villa in Muscat?
What's the typical vacancy rate in Muscat as of 2026?
As of early 2026, the average residential vacancy rate in Muscat is estimated at around 8% for long-term rentals across all common property types.
Vacancy rates in Muscat range from roughly 4% to 7% in prime, high-demand areas like Al Mouj and Muscat Hills, up to 10% to 15% in older buildings or weaker micro-locations.
The main factor currently driving vacancy rates in Muscat is pricing strategy, as correctly priced units in desirable locations re-let quickly, while overpriced or dated units can sit empty for extended periods.
Muscat's average vacancy rate of around 8% is reasonably competitive within the Gulf region, though prime lifestyle areas tend to outperform the city average significantly.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Muscat.
What's the rent-to-price ratio in Muscat as of 2026?
As of early 2026, the average annual rent-to-price ratio in Muscat is approximately 6.3%, meaning for every OMR 100,000 (roughly USD 260,000 or EUR 240,000) of property value, you can expect about OMR 6,300 (roughly USD 16,400 or EUR 15,100) in gross annual rent.
A rent-to-price ratio of around 5% to 7% is generally considered favorable for buy-to-let investors in Muscat, and this ratio is essentially the same as the gross rental yield since both measure annual rent as a percentage of purchase price.
Muscat's rent-to-price ratio of around 6.3% compares well to other Gulf cities, where prime residential markets often see ratios below 5% due to elevated property prices relative to achievable rents.
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.
Which neighborhoods and micro-areas in Muscat give the best yields as of 2026?
Where are the highest-yield areas in Muscat as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Muscat are Ruwi, Al Amerat, and parts of Seeb such as Al Mawaleh and Al Hail, where value pricing meets consistent renter demand.
In these top-performing areas like Ruwi, Al Amerat, and Al Mawaleh, gross rental yields typically range from 7% to 8% or higher, depending on the specific building and unit condition.
The main characteristic these high-yield areas in Muscat share is affordable purchase prices relative to achievable rents, combined with strong demand from budget-conscious tenants, workers, and families who prioritize practical access over lifestyle amenities.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Muscat.
Where are the lowest-yield areas in Muscat as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Muscat are Al Mouj (The Wave), Shatti Al Qurum, and Muscat Hills, where premium lifestyle positioning pushes purchase prices high relative to rents.
In these low-yield areas like Al Mouj and Muscat Hills, gross rental yields typically range from around 4% to 5.5%, which is still positive but well below the city average.
The main reason yields are compressed in these areas of Muscat is that property prices reflect lifestyle premiums, amenities, and prestige that tenants value but cannot fully pay for through higher rents.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Muscat.
Which areas have the lowest vacancy in Muscat as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Muscat are Al Mouj, Muscat Hills, and Al Khuwair, where strong tenant demand keeps units occupied.
In these low-vacancy areas like Al Mouj, Muscat Hills, and Al Khuwair, vacancy rates typically range from around 4% to 7% when properties are priced correctly.
The main demand driver keeping vacancy low in these Muscat neighborhoods is the concentration of expat professionals and higher-income families who want lifestyle amenities, good schools nearby, and easy commutes.
The trade-off investors typically face when targeting these low-vacancy areas in Muscat is accepting lower gross yields, since the same factors that attract reliable tenants also push purchase prices up.
Which areas have the most renter demand in Muscat right now?
The top three neighborhoods currently experiencing the strongest renter demand in Muscat are Al Mouj for lifestyle seekers, Al Khuwair for practical commuters, and the Azaiba and Ghubrah corridor for professionals who want access and services.
The type of renter profile driving most of the demand in these areas is a mix of expat professionals on corporate assignments, higher-income Omani families seeking quality housing, and young couples looking for well-connected locations with modern amenities.
In these high-demand neighborhoods like Al Mouj, Al Khuwair, and Azaiba, correctly priced rental listings typically get filled within two to four weeks, though overpriced units can sit much longer.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Muscat.
Which upcoming projects could boost rents and rental yields in Muscat as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Muscat are Madinat Al Irfan near the Oman Convention and Exhibition Centre, The Sustainable City in Yiti, and the continued maturation of Muscat Bay as a residential-tourism community.
The neighborhoods most likely to benefit from these projects include Al Ghubrah, Azaiba, and Airport Heights near Madinat Al Irfan, as well as Yiti and the broader southeast coastal corridor near The Sustainable City.
Once these projects reach full operation, investors in nearby areas might realistically expect rent increases of around 5% to 15% over several years, though this depends heavily on the specific micro-location and how well the new developments attract jobs and amenities.
You'll find our latest property market analysis about Muscat here.
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What property type should I buy for renting in Muscat as of 2026?
Between studios and larger units in Muscat, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Muscat in terms of both rental yield and occupancy, thanks to their lower purchase prices and deep renter demand.
Studios in Muscat typically yield around 6.5% to 8% gross (roughly OMR 6,500 to OMR 8,000 per OMR 100,000 invested, or USD 17,000 to USD 21,000 per USD 260,000, or EUR 15,600 to EUR 19,200 per EUR 240,000), while larger two to three bedroom units often yield closer to 5.5% to 7%.
The main factor explaining why smaller units outperform in Muscat is that purchase prices are lower relative to rent, and the tenant pool for studios is deep with singles, young couples, and professionals on short to mid-term assignments.
One scenario where larger units might actually be the better investment in Muscat is in prime lifestyle areas like Al Mouj, where well-laid-out two-bedroom apartments attract families and shareable demand from executives willing to pay premium rents.
What property types are in most demand in Muscat as of 2026?
As of early 2026, the most in-demand property type in Muscat is the one to two bedroom apartment or condo, which attracts the broadest pool of tenants across income levels and household types.
The top three property types ranked by current tenant demand in Muscat are one to two bedroom apartments, well-laid-out three bedroom apartments for families, and three to four bedroom villas in family-friendly neighborhoods.
The primary demographic trend driving this demand pattern in Muscat is the mix of expat professionals seeking practical, modern housing near employment clusters and Omani families looking for quality homes in well-connected areas with good schools.
One property type currently underperforming in demand in Muscat is the large, older villa in less accessible locations, which tends to attract fewer tenants due to higher running costs and longer commutes.
What unit size has the best yield per m² in Muscat as of 2026?
As of early 2026, the unit sizes that deliver the best gross rental yield per square meter in Muscat are smaller units in the 40 to 80 square meter range, which includes studios and efficient one to two bedroom apartments.
For this optimal unit size in Muscat, the typical gross rental yield per square meter works out to roughly OMR 60 to OMR 90 per square meter annually (approximately USD 156 to USD 234, or EUR 144 to EUR 216), depending on location and building quality.
The main reason larger units tend to have lower yield per square meter in Muscat is that rent per square meter declines as units get bigger, while purchase prices don't drop proportionally, and larger homes also carry higher maintenance costs and longer tenant decision cycles.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Muscat.
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.
What costs cut my net yield in Muscat as of 2026?
What are typical property taxes and recurring local fees in Muscat as of 2026?
As of early 2026, Oman does not have a broad annual residential property tax, so the estimated annual property tax amount for a typical rental apartment in Muscat is effectively zero OMR (zero USD, zero EUR).
The main recurring local fees landlords in Muscat must budget for are community or service charges in master-planned developments, which can range from OMR 500 to OMR 2,000 per year (roughly USD 1,300 to USD 5,200, or EUR 1,200 to EUR 4,800) depending on the community and amenities.
Since there's no annual property tax, these service charges and any applicable registration fees typically represent only about 1% to 3% of gross rental income in Muscat, keeping the tax burden light compared to many other countries.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Muscat.
What insurance, maintenance, and annual repair costs should landlords budget in Muscat right now?
The estimated annual landlord insurance cost for a typical rental property in Muscat is relatively modest, often around OMR 100 to OMR 300 (roughly USD 260 to USD 780, or EUR 240 to EUR 720), though this varies by coverage level and property type.
The recommended annual maintenance and repair budget in Muscat is around 0.6% to 1% of property value, which for a OMR 100,000 property (roughly USD 260,000 or EUR 240,000) works out to OMR 600 to OMR 1,000 per year (roughly USD 1,560 to USD 2,600, or EUR 1,440 to EUR 2,400).
The type of repair expense that most commonly catches landlords off guard in Muscat is air conditioning servicing and replacement, because the coastal humidity and year-round cooling demand accelerate wear on AC units much faster than in drier climates.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Muscat is around OMR 700 to OMR 1,300 (roughly USD 1,820 to USD 3,380, or EUR 1,680 to EUR 3,120) for a typical rental property.
Which utilities do landlords typically pay, and what do they cost in Muscat right now?
In most long-term Muscat rentals, tenants typically pay day-to-day electricity and water bills, while landlords usually cover community or service charges and any utilities during vacancy periods or in certain serviced arrangements.
When landlords do cover utilities during vacancy or in inclusive arrangements, the estimated monthly cost for a typical unit in Muscat runs around OMR 30 to OMR 80 (roughly USD 78 to USD 208, or EUR 72 to EUR 192), with electricity being the biggest variable due to air conditioning usage in summer months.
What does full-service property management cost, including leasing, in Muscat as of 2026?
As of early 2026, the typical monthly property management fee for full-service management in Muscat is around 5% to 8% of monthly rent, which for a OMR 500 per month rental (roughly USD 1,300 or EUR 1,200) works out to OMR 25 to OMR 40 monthly (roughly USD 65 to USD 104, or EUR 60 to EUR 96).
On top of ongoing management, the typical leasing or tenant-placement fee in Muscat is around 50% to 100% of one month's rent, meaning OMR 250 to OMR 500 (roughly USD 650 to USD 1,300, or EUR 600 to EUR 1,200) each time a new tenant is placed.
What's a realistic vacancy buffer in Muscat as of 2026?
As of early 2026, landlords in Muscat should set aside around 8% of annual rental income as a vacancy buffer for conservative underwriting, which translates to roughly one month of lost rent per year.
The typical number of vacant weeks per year that landlords experience in Muscat is around 3 to 6 weeks for well-located, correctly priced properties, though older or overpriced units can sit empty for 8 weeks or more.
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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) | NCSI is Oman's official statistics agency and the primary source for government-published market indicators. | We used it to anchor the direction of prices via Oman's official real estate price index releases. We then used that to check whether private-sector price and rent snapshots were consistent with the latest official trend. |
| Oman Government Data Portal | This is the official open-data platform for public-sector datasets across Oman. | We used it as a cross-check hub to verify which public datasets exist. We also used it to confirm our narrative aligns with the government's data-sharing ecosystem. |
| Central Bank of Oman (CBO) | The CBO is Oman's central bank and a top-tier source for macro context and official data initiatives. | We used it for macro and market context framing around why yields move based on rates, liquidity, and confidence. We also used it as a credibility anchor when triangulating market conditions. |
| Savills Oman Research (Q3 2025) | Savills is a major global real estate advisory with a research team and consistent reporting methodology. | We used it to ground Muscat's rent levels and rent movements in named submarkets like Al Mouj, Muscat Hills, and Al Khuwair. We then carried those levels into early 2026 as our most recent professional baseline. |
| Savills Oman Research PDF (Q3 2025) | This is the underlying research report document from Savills containing detailed rent benchmarks. | We used the rent benchmarks shown in the report as the numerator inputs for yield calculations. We then triangulated these with listing-based price evidence to estimate rent-to-price ratios. |
| Savills Oman Listings (Al Mouj) | Savills' listings are a transparent, inspectable snapshot of real asking prices and sizes in a prime Muscat submarket. | We used it to derive price-per-square-meter bands from real, currently marketed homes. We then used those price bands to compute indicative gross yields when paired with Savills rent benchmarks. |
| Cavendish Maxwell Market Report | Cavendish Maxwell is an established regional real estate consultancy that publishes research-led market reports. | We used it to validate which residential stock types dominate in Oman such as apartments versus villas. We also used it as a qualitative cross-check on supply and demand dynamics feeding vacancy and rent stability assumptions. |
| Zawya (citing NCSI) | Zawya is a widely used regional financial newswire and explicitly attributes figures to NCSI. | We used it as a quick verification layer for NCSI-reported index moves by property category. We used those category moves to sanity-check our yields by property type ranges. |
| Oman Observer (citing NCSI) | The Oman Observer is a major national newspaper, and here it explicitly attributes the data to NCSI. | We used it as a second independent cross-reference for the same official index movements and transaction-value context. We then used that to avoid one-article bias when describing where prices were heading into early 2026. |
| Nama Electricity Residential Tariff (2025) | This is an official utility tariff document from Nama's ecosystem with the actual slab rates. | We used it to estimate what utilities cost when landlords cover any bills. We translate the slab tariffs into practical monthly ranges for typical unit consumption. |
| Nama Water Services Tariffs | This is an official utility tariff page showing water and sewage tariff details and fees. | We used it to estimate water plus sewage recurring costs and to describe who typically pays them in Muscat rentals. We also used it to justify the vacancy-buffer advice because utilities during vacancy can be a real cost line. |
| Deloitte Tax Guidance | Deloitte is a major professional services firm, and this note summarizes the enacted tax change and effective date. | We used it to clarify that as of January 2026, Oman's upcoming personal income tax is not yet in force (effective 2028). We then explain how this affects net yield today versus future scenarios. |
| Reuters PIT Coverage | Reuters is a top-tier global newswire and provides high-confidence policy timelines. | We used it as an additional, independent verification of the personal income tax effective date and threshold. That lets us discuss tax risk without guessing or relying on informal sources. |
| OMRAN Group - Madinat Al Irfan | OMRAN is the government-backed development company, so project pages are primary sources for what's actually being built. | We used it to identify the specific Muscat growth node around OCEC and Madinat Al Irfan that can increase tenant demand. We then tie this to micro-areas likely to see rent support rather than generic citywide claims. |
| OMRAN Group - The Sustainable City Yiti | OMRAN is the government-backed project owner and provides the official description of scope and positioning. | We used it to flag Yiti as a pipeline location that can shift renter preferences through new supply and lifestyle amenities. We also used it to explain why nearby areas can see rent uplift or added competition depending on segment. |
| OMRAN Group - Muscat Bay | This is the official project source for one of Muscat's notable residential-tourism communities. | We used it to ground the prime lifestyle coastal submarket story that typically produces lower yields but strong demand. We also reference it when explaining why prime areas can have lower yields due to high prices and sticky rents. |
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