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Everything you need to know is included in our Oman Property Pack
Are you considering buying real estate in the land of Arabian Mystique? Are you unsure if now is a good time to make a move?
Everyone has their own viewpoint when it comes to market timing. The Omani real estate agent you know may suggest that it's currently a good time to buy property, but your childhood friend living in Muscat suggests waiting for a couple more months.
At SandsOfWealth, when we create articles or update our pack of documents related to the real estate market in Oman, we believe in solid evidence and concrete data, not mere opinions or rumors.
We have gone through official reports and government website statistics in great detail. As a result, we have created a reliable database filled with valuable information. Here's what we found, which can help you decide whether it's the right time to buy real estate in Oman.
Happy reading time!
How is the property market in Oman these days?
Oman currently ensures a stable environment for investors
Positive
If you want to invest in real estate, prioritize stability as it safeguards against economic downturns and reduces investment volatility. It is an information you need as a foreigner looking to buy a property in Oman.
Here's some positive information: Oman is a country with a stable environment. The last Fragile State Index reported for this country is 47.4, which is very good.
Oman ensures a stable environment for investors through its Vision 2040 initiative, which focuses on economic diversification, infrastructure development, and regulatory reforms to reduce dependency on oil revenues and enhance the business climate. Additionally, the country's strategic location along key global shipping routes and its political stability, characterized by a neutral foreign policy and effective governance, further bolster investor confidence.
A solid investment potential exists in this country. Now, let's review the economic outlook.
Oman will see substantial development
Positive
Before buying real estate, assess the country's economic strength.
According to the IMF's estimations, Oman is likely to finish 2024 with a growth rate of 1.2%, which is promising. Regarding 2025, the experts say 3.1%.
The pace will even accelerate since Oman's economy is expected to increase by 12.6% during the next 5 years, resulting in an average GDP growth rate of 2.5%.
The expected sustainable growth rate in Oman indicates a stable and expanding economy, which can lead to increased demand for real estate as more people and businesses seek properties. This growth can drive property values up, offering potential investors the opportunity for good returns on their investments.
Nonetheless, GDP growth is not the only metric to look at.
Oman's population is growing and getting (a bit) richer
Positive
Considering population growth and GDP per capita is essential for making informed real estate purchases because:
- a growing population means more people needing homes
- a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)
In Oman, the average GDP per capita has changed by 3.3% over the last 5 years. It's not much, but the growth is here. Furthermore, the Omani population is growing (+15% in 5 years).
This means that, if you purchase a serene desert retreat in Muscat and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, there might be a rise in rental demand in Omani cities like Muscat, Salalah, or Sohar in 2025.
Properties promise really attractive yields in Oman
Positive
To determine if a property investment can be a money-making opportunity, focus on the expected rental yields.
It represents the annual rental income generated by a property divided by its purchase price or market value. For instance, if a property in Oman is purchased for 200,000 OMR and generates 12,000 OMR in annual rental income, the rental yield would be 6%.
Based on the data provided by Numbeo, rental properties in Oman promise gross rental yields from 5.6% and 8.3%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Oman.
You won't get better yields in many places.
Everything you need to know is included in our Oman Property Pack
In Oman, inflation is projected to remain minimal
Neutral
Inflation is the rise in the cost of living.
It's when your go-to camel ride in Muscat costs 20 Omani rials instead of 15 Omani rials a couple of years ago.
If you're contemplating investing in a property, high inflation can bring you several benefits:
- Property values tend to increase over time, leading to potential capital appreciation.
- Inflation can result in higher rental rates, thereby boosting cash flow from the property.
- Inflation reduces the real value of debt, making mortgage payments more affordable.
- Real estate can act as a hedge against inflation, preserving the value of the investment.
- Diversifying into real estate provides stability during inflationary periods.
- Tax advantages, such as depreciation deductions, can help offset the impact of inflation.
As projected by the IMF, over the next 5 years, Oman will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
This data is suggesting that Oman is expected to have near-zero inflation then. Unfortunately, buying a property now may not lead to significant price increases or high profits in the future.
Is it a good time to buy real estate in Oman then?
Time to conclude !
Oman is currently a stable environment for investors, making 2025 an excellent time to consider buying property there. The country's economy is on a promising trajectory, with expectations of a 12.6% increase over the next five years. This translates to an average GDP growth rate of 2.5%, which is a healthy indicator of economic stability and expansion. Such growth is likely to attract more people and businesses, increasing the demand for real estate and potentially driving up property values. For investors, this means a good chance of seeing a solid return on their investments.
As Oman's economy grows, so does its population, which is gradually becoming wealthier. This demographic shift is crucial because a growing and more affluent population typically leads to higher demand for housing and commercial properties. More people looking for homes and businesses seeking office spaces can create a competitive real estate market, further boosting property values. For those considering investing in Oman's real estate, this trend suggests a promising future with the potential for significant appreciation in property values.
Another compelling reason to invest in Oman's property market is the attractive rental yields. According to data from Numbeo, rental properties in Oman offer gross rental yields ranging from 5.6% to 8.3%. These figures indicate that investors can expect a healthy return on rental properties, making it a lucrative option for those looking to generate passive income. With such promising rental yields, buying property in Oman could be a smart financial move in 2025.
Moreover, inflation in Oman is projected to remain minimal, which is a significant advantage for property investors. Low inflation means that the purchasing power of money is preserved, and the cost of living remains stable. This stability can make real estate investments more predictable and less risky, as the value of money and property is less likely to be eroded by inflation. In summary, with a stable economy, growing population, attractive rental yields, and minimal inflation, 2025 is shaping up to be an ideal time to invest in Oman's property market.
We hope this article has offered you practical support!. If you need to know more, you can check our our pack of documents related to the real estate market in Oman.
-Will real estate prices go up in Oman?
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.