Authored by the expert who managed and guided the team behind the Oman Property Pack
Everything you need to know before buying real estate is included in our Oman Property Pack
If you want to buy a property in Oman and rent it out, you need to understand that foreign ownership works differently here than in most countries.
Oman restricts where foreigners can own property, but inside designated zones called Integrated Tourism Complexes, you can legally own and rent out residential units.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Oman.
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 Oman.
Insights
- Foreign property ownership in Oman is largely confined to Integrated Tourism Complexes (ITCs), where gross rental yields average around 6% in early 2026, making location selection critical for returns.
- Muscat short-term rentals show an average occupancy of 44% with nightly rates around OMR 26 (USD 67), but tourism licensing requirements mean this strategy requires more compliance work than long-term renting.
- Al Khuwair and Al Ghubrah in Muscat consistently deliver better yields than premium waterfront areas because purchase prices are more moderate while tenant demand remains strong year-round.
- Oman's personal income tax is legislated but not yet in force in early 2026, meaning individual landlords currently face no direct income tax on rental earnings from residential properties.
- Service charges in Oman's resort-style ITCs often represent the largest monthly holding cost for foreign landlords, sometimes exceeding maintenance and management fees combined.
- Furnished apartments in Muscat typically rent 2 to 3 weeks faster than unfurnished units because Oman's expat workforce often arrives on fixed-term contracts and prefers move-in-ready accommodation.
- The 2025 amendments to Oman's landlord-tenant law (Royal Decree 12/2025) modernized dispute handling, making lease registration through Muscat Municipality's e-services portal more important than ever for landlord protection.
- Vacancy rates in Muscat hover around 12%, translating to roughly 1.5 months of lost rent per year, though well-priced units in high-demand neighborhoods like MSQ or Qurum often stay vacant for only 3 to 4 weeks.
Can I legally rent out a property in Oman as a foreigner right now?
Can a foreigner own-and-rent a residential property in Oman in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Oman, but only within government-licensed Integrated Tourism Complexes (ITCs) such as Al Mouj Muscat, Muscat Hills, or Muscat Bay.
The main ownership structure available to non-Omanis is freehold ownership inside these ITCs, which was established by Royal Decree 12/2006 and allows foreigners to hold property for accommodation or investment purposes.
The biggest restriction foreigners face is that Royal Decree 29/2018 explicitly prohibits non-Omani ownership of land and real estate in most areas outside ITCs, which is why the vast majority of foreign buyers end up purchasing in these designated complexes.
If you're not a local, you might want to read our guide to foreign property ownership in Oman.
Do I need residency to rent out in Oman right now?
You do not need Omani residency to rent out a property in Oman, though you will need to ensure your lease is properly registered with Muscat Municipality if your property is located there.
As of early 2026, Oman's personal income tax is legislated but not yet in force, so individual landlords typically do not need a local tax identification number to collect rental income from residential properties.
While a local Omani bank account is not strictly required by law, it is strongly recommended because tenants commonly pay via local bank transfers and service providers are much easier to pay from an Omani account.
Managing a rental property in Oman remotely is practically feasible if you hire a local property manager, since Muscat Municipality's e-services portal handles lease registration, renewals, and modifications online.
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What rental strategy makes the most money in Oman in 2026?
Is long-term renting more profitable than short-term in Oman in 2026?
As of early 2026, long-term renting in Oman generally delivers more stable and effort-adjusted profit, while short-term renting can generate higher gross revenue but comes with more operational complexity and regulatory requirements.
A well-managed 2-bedroom apartment in Muscat might earn around OMR 5,000 per year (USD 13,000, EUR 12,000) on a long-term lease, while a comparable short-term rental could gross OMR 7,000 to 9,000 annually (USD 18,000 to 23,000, EUR 16,500 to 21,000), though operating costs and vacancy eat significantly into that difference.
Short-term renting tends to outperform financially in resort-style ITCs like Al Mouj Muscat or Muscat Bay, where tourist traffic is higher and properties command premium nightly rates, especially when professional management handles the operations.
What's the average gross rental yield in Oman in 2026?
As of early 2026, the average gross rental yield for residential investment properties in Muscat's prime areas sits around 6%, which is competitive compared to many Gulf markets.
The realistic gross yield range in Oman spans from about 5% in premium waterfront ITCs like Al Mouj (where purchase prices are highest) up to 7.5% in more moderately priced neighborhoods with strong tenant demand.
Apartments in established expat-heavy neighborhoods like Al Khuwair or Al Ghubrah typically achieve the highest gross yields in Oman because purchase prices remain more accessible while rents stay robust due to consistent workforce demand.
By the way, we have much more granular data about rental yields in our property pack about Oman.
What's the realistic net rental yield after costs in Oman in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Oman is approximately 4.2%, though this varies significantly based on property type and location.
Most landlords in Oman realistically experience net yields between 3.5% and 5.5%, with the lower end typical in amenity-heavy ITCs and the higher end achievable in more straightforward apartment buildings with lower service charges.
The three main cost categories that reduce gross yield to net yield in Oman are service charges (which are unusually high in resort-style ITCs with pools, gyms, and 24/7 security), property management fees (typically 6% to 10% of collected rent), and a maintenance reserve for AC repairs and tenant turnover refreshes.
You might want to check our latest analysis about gross and net rental yields in Oman.
What monthly rent can I get in Oman in 2026?
As of early 2026, typical monthly rents in Muscat are around OMR 220 (USD 570, EUR 525) for a studio, OMR 320 (USD 830, EUR 765) for a 1-bedroom apartment, and OMR 420 (USD 1,090, EUR 1,000) for a 2-bedroom apartment.
A decent studio in Oman rents for between OMR 170 and OMR 300 per month (USD 440 to 780, EUR 405 to 720), with the lower end in neighborhoods like Seeb and the higher end in central Muscat locations.
A typical 1-bedroom apartment in Oman commands between OMR 250 and OMR 450 per month (USD 650 to 1,170, EUR 600 to 1,075), depending on proximity to business districts and quality of finishes.
A 2-bedroom apartment in Oman ranges from OMR 330 to OMR 650 per month (USD 860 to 1,690, EUR 790 to 1,555), with premium ITC properties like those in Al Mouj Muscat reaching OMR 700 or more.
If you want to know more about this topic, you can read our guide about rents and rental incomes 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.
What are the real numbers I should budget for renting out in Oman in 2026?
What's the total "all-in" monthly cost to hold a rental in Oman in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental apartment in Muscat's ITCs ranges from OMR 85 to OMR 170 (USD 220 to 440, EUR 200 to 405), while villas cost OMR 140 to OMR 280 (USD 365 to 730, EUR 335 to 670).
The realistic monthly holding cost range for most standard rental properties in Oman falls between OMR 100 and OMR 200 (USD 260 to 520, EUR 240 to 480), covering service charges, maintenance, management fees, and insurance.
In Oman's ITC communities, service charges are typically the largest single cost category because these master-planned developments include amenities like swimming pools, landscaping, security, and shared facilities that require ongoing maintenance.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Oman.
What's the typical vacancy rate in Oman in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Muscat hovers around 12%, which is moderate compared to other Gulf markets.
Landlords in Oman should realistically budget for about 1.5 months of vacancy per year, though well-priced properties in high-demand neighborhoods often find tenants within 3 to 4 weeks.
The main factor affecting vacancy rates across Muscat neighborhoods is proximity to employment centers and schools, with areas like Al Khuwair and Madinat Sultan Qaboos experiencing faster tenant turnover due to their central locations and expat appeal.
Vacancy in Oman tends to peak during the summer months (June through August) when many expat families leave for extended holidays and some employment contracts end, creating a brief window of higher turnover.
We have a whole part covering the best rental strategies in our pack about buying a property in Oman.
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Where do rentals perform best in Oman in 2026?
Which neighborhoods have the highest long-term demand in Oman in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Muscat are Al Khuwair, Madinat Sultan Qaboos (MSQ), and Qurum, all of which benefit from central locations and established infrastructure.
Families with children in Oman gravitate toward MSQ, Qurum, and Al Azaiba because these neighborhoods offer proximity to international schools, larger apartment layouts, and quieter residential environments.
Students in Oman tend to concentrate in Al Ghubrah and Al Khuwair due to more affordable rents, good public transport connections, and proximity to several universities and colleges.
Expats and international professionals in Oman prefer Qurum, Shatti Al Qurum, and Al Mouj Muscat because these areas offer beach access, embassy proximity, upscale dining options, and the lifestyle amenities that corporate relocation packages often target.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Oman.
Which neighborhoods have the best yield in Oman in 2026?
As of early 2026, the three neighborhoods delivering the best rental yields in Muscat are Al Khuwair, Al Ghubrah, and Azaiba, all of which combine solid rents with more moderate purchase prices.
Gross rental yields in these top-performing Oman neighborhoods typically range from 6.5% to 7.5%, compared to 5% to 6% in premium waterfront areas like Al Mouj.
These neighborhoods achieve higher yields than Muscat's luxury areas because they attract a steady flow of working professionals and mid-level expats who prioritize practical locations over resort-style amenities, keeping occupancy high without requiring premium pricing.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Oman.
Where do tenants pay the highest rents in Oman in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Muscat are Al Mouj Muscat, Shatti Al Qurum, and Muscat Bay, all of which offer waterfront locations and premium lifestyle amenities.
A standard 2-bedroom apartment in these premium Muscat neighborhoods typically rents for OMR 600 to OMR 900 per month (USD 1,560 to 2,340, EUR 1,435 to 2,155), with exceptional units exceeding OMR 1,000.
These neighborhoods command Oman's highest rents because they combine limited supply with irreplaceable features like marina access, private beaches, and walkable retail and dining clusters that cannot be replicated elsewhere in Muscat.
The typical tenant profile in these highest-rent Oman neighborhoods includes senior executives on corporate relocation packages, diplomats posted to nearby embassies, and wealthy families seeking resort-style living within commuting distance of Muscat's business districts.
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 do tenants actually want in Oman in 2026?
What features increase rent the most in Oman in 2026?
As of early 2026, the three property features that increase monthly rent the most in Oman are reliable high-capacity air conditioning (critical in a climate where summer temperatures exceed 45°C), covered parking, and 24/7 gated security with compound-style access control.
Reliable AC systems can add a rent premium of 10% to 15% in Oman because tenants have experienced enough breakdowns during peak summer to pay extra for landlords with a reputation for fast repairs and quality units.
One commonly overrated feature in Oman is high-end designer kitchens, since many expat tenants eat out frequently or have household help who prioritize functional appliances over luxury finishes.
One affordable upgrade that delivers strong returns for Oman landlords is installing blackout curtains and quality window films, which tenants value highly for managing the intense Gulf sunlight and reducing cooling costs.
Do furnished rentals rent faster in Oman in 2026?
As of early 2026, furnished apartments in Oman typically rent 2 to 3 weeks faster than unfurnished equivalents because Muscat's large expat workforce often arrives on fixed-term contracts and strongly prefers move-in-ready accommodation.
Furnished rentals in Oman command a rent premium of roughly 15% to 25% over unfurnished units, though the premium only holds if the furnishing quality is consistent and well-maintained rather than cheap or mismatched.
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How regulated is long-term renting in Oman right now?
Can I freely set rent prices in Oman right now?
Landlords in Oman have significant freedom to set initial rent prices at lease signing, as there is no government-mandated rent control or price cap for new tenancies in the Muscat market.
However, rent increases during or upon renewal of a tenancy are subject to the formal landlord-tenant framework, and the 2025 amendments (Royal Decree 12/2025) strengthened enforcement mechanisms, meaning landlords cannot simply impose arbitrary increases without following proper procedures and potentially facing dispute resolution.
What's the standard lease length in Oman right now?
The standard lease length for residential rentals in Oman is 12 months, which is the most common structure used in Muscat's formal rental market and recognized by the municipality's contract registration system.
Landlords in Oman typically require a security deposit of 1 to 2 months' rent (OMR 320 to OMR 640 for a typical 1-bedroom, equivalent to USD 830 to 1,660 or EUR 765 to 1,530), held against damages and unpaid utility bills.
Security deposits in Oman must be returned at the end of the tenancy minus any legitimate deductions for damages or outstanding bills, and the 2025 landlord-tenant law amendments have made dispute resolution more accessible for tenants who believe deposits are being unfairly withheld.
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.
How does short-term renting really work in Oman in 2026?
Is Airbnb legal in Oman right now?
Airbnb-style short-term rentals are not automatically illegal in Oman, but the conservative compliance view is that operating tourist accommodation requires licensing under Oman's tourism regulations administered by the Ministry of Heritage and Tourism.
To operate a short-term rental legally in Oman, you should expect to obtain a tourism establishment license from the ministry, though the exact process depends on your property type and whether it falls within an ITC that may have its own internal rules.
Oman does not have a widely published nationwide cap on the number of nights per year a property can be rented short-term, but restrictions often come from individual ITC community rules or building management agreements that may limit or prohibit nightly rentals.
Operating an unlicensed short-term rental in Oman can result in fines, forced closure, and potential issues with your ITC community management, though enforcement has historically focused more on commercial-scale operators than occasional hosts.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Oman.
What's the average short-term occupancy in Oman in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Muscat is approximately 44%, which reflects a moderately competitive market with clear seasonal variation.
Most short-term rentals in Oman experience occupancy rates ranging from 30% during slow periods to 65% during peak tourist season, depending on location, pricing strategy, and listing quality.
The highest occupancy months for short-term rentals in Oman are November through March, when cooler temperatures attract tourists and the weather is ideal for outdoor activities and beach visits.
The lowest occupancy months are June through August, when temperatures regularly exceed 45°C and most leisure tourists avoid the Gulf region entirely, leaving only business travelers and a smaller pool of budget visitors.
Finally, please note that you can find much more granular data about this topic in our property pack about Oman.
What's the average nightly rate in Oman in 2026?
As of early 2026, the average nightly rate for short-term rentals in Muscat is approximately OMR 26 (USD 67, EUR 62), though rates vary significantly by property type and location.
The realistic nightly rate range for most short-term rentals in Oman spans from OMR 15 (USD 39, EUR 36) for basic studios to OMR 80 (USD 208, EUR 191) for premium waterfront apartments with sea views and resort amenities.
The typical difference between peak season (November to March) and off-season (June to August) nightly rates in Oman is around OMR 10 to 15 (USD 26 to 39, EUR 24 to 36), with savvy hosts dropping prices significantly during summer to maintain any occupancy at all.
Is short-term rental supply saturated in Oman in 2026?
As of early 2026, Muscat's short-term rental market is moderately competitive but not fully saturated, with occupancy rates and revenue metrics indicating that well-positioned properties can still perform profitably.
The number of active short-term rental listings in Muscat has been growing steadily as more ITC property owners explore the strategy, though the market remains much smaller than established STR destinations like Dubai or Lisbon.
The most oversaturated areas for short-term rentals in Oman are the waterfront zones of Al Mouj Muscat and Shatti Al Qurum, where many similar properties compete for the same tourist-oriented tenant pool.
Neighborhoods that still have room for new short-term rental supply in Oman include areas near Muscat International Airport, the Muttrah heritage district, and emerging ITC developments where tourist infrastructure is growing but STR inventory remains thin.
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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 Oman, 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 |
|---|---|---|
| Ministry of Housing & Urban Planning (MOHUP) | Official government source for Oman's property ownership laws. | We used it to confirm foreigners can legally own in ITCs under Royal Decree 12/2006. We also referenced Royal Decree 29/2018 to explain restricted areas. |
| Savills Oman | Major international real estate consultancy with established research methodology. | We used it to anchor neighborhood-level rent benchmarks across Muscat. We also used it to identify premium rent areas and demand hotspots. |
| AirDNA | Leading short-term rental data provider with transparent occupancy definitions. | We used it to estimate Muscat STR occupancy rates and nightly pricing. We also used it to assess market saturation levels. |
| Cavendish Maxwell | Recognized MENA real estate consultancy producing research-led reports. | We used it to triangulate vacancy rates and market health signals. We also used it to validate supply-demand dynamics in Muscat. |
| Muscat Municipality | Official municipal platform where rental contracts are registered. | We used it to explain the lease registration process for landlords. We also used it to support remote management feasibility. |
| Oman Tax Authority | Official tax regulator for personal income tax and VAT rules. | We used it to confirm PIT is not yet in force in early 2026. We also used it to frame rental income taxation expectations. |
| Lexology (CMS) | Reputable legal publishing platform summarizing law firm analyses. | We used it to explain the 2025 landlord-tenant law amendments. We also used it to keep regulatory guidance current. |
| Oman News Agency | Official state news agency providing reliable government announcements. | We used it to corroborate Royal Decree 12/2025 amendments. We also used it to validate tourism growth context. |
| National Centre for Statistics (NCSI) | Oman's official statistics agency used by policymakers. | We used it to anchor demand drivers like expat population concentration. We also used it to justify why Muscat dominates rental demand. |
| PwC Worldwide Tax Summaries | Major global tax firm with structured country summaries. | We used it to understand VAT treatment of residential leasing. We also used it to translate tax rules into investor-friendly guidance. |
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.
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