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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 49.5, which is very good.
Oman has a strong economy and a stable government that is open to foreign investment, which provides investors with a secure and reliable environment to do business. The country also has an advanced infrastructure and a pro-business attitude, which further ensures a stable environment for investors.
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 2023 with a growth rate of 1.7%, which is promising. Concerning 2024, the experts say 5.2%.
The pace will even accelerate since Oman's economy is expected to increase by 13.1% during the next 5 years, resulting in an average GDP growth rate of 2.6%.
The expected sustainable growth rate in Oman is beneficial for real estate investors as it indicates a healthy economy with a positive outlook, which translates into increased demand for housing and higher prices for real estate 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 (+11% 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 2024.
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 expected to be moderate
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 7.9%, which gives us an average yearly increase of 1.6%.
This data is suggesting that Oman may face inflation in the near future. In such a situation, buying property now becomes an option to consider.
Is it a good time to buy real estate in Oman then?
Time to conclude !
2024 presents a promising opportunity for property investment in Oman, driven by a series of favorable signals that suggest a conducive environment for real estate endeavors. Oman's commitment to ensuring a stable investment environment is a significant advantage for property buyers. This stability provides a solid foundation for property ownership, reducing risks and uncertainties for investors.
The anticipation of substantial development in Oman further bolsters the case for property investment. As the country embarks on development initiatives, there is potential for increased demand for housing and properties, potentially leading to capital appreciation over time.
Oman's growing population and improving financial status contribute to the appeal of property investment. The combination of these factors can drive an uptick in housing demand, providing opportunities for both long-term value appreciation and potential rental income.
The prospect of really attractive yields in Oman adds to the allure of property investment. High rental yields imply the potential for significant returns on investment through rental income, offering investors a compelling incentive to enter the real estate market.
While inflation is expected to be moderate, the overall favorable signals of stability, substantial development, improving population prosperity, and attractive rental yields make 2024 an opportune year to explore property investment opportunities in Oman.
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.
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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.
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