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
With Oman's residential property prices climbing 7.3% in early 2025 and rental yields reaching 6% to 9% in Muscat, many buyers are asking whether January 2026 is the right moment to invest.
We track the Oman real estate market daily and update this blog post regularly to reflect the latest price trends, rent levels, and market signals.
Below, you will find our detailed analysis of current housing prices in Oman and whether the market favors buyers or sellers right now.
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.
So, is now a good time?
As of early 2026, buying property in Oman is a "rather yes" because official data shows prices rising and financing costs easing, though you need to pick the right neighborhood carefully.
The strongest signal is that Oman's official residential property price index rose 7.3% year-on-year in Q1 2025, showing clear upward momentum rather than a market about to crash.
Another strong signal is that borrowing costs are easing because Oman's interest rates track the US Federal Reserve, and recent GCC rate cuts mean mortgage pressure is lower than in 2023 or 2024.
We also see population growth supporting rental demand, with Oman passing 5.3 million residents in 2025, and prime Muscat rents staying firm in areas like Al Mouj and Muscat Hills.
The best strategy is to focus on liquid neighborhoods such as Al Mouj, Muscat Hills, Qurum, or Al Khuwair, negotiate hard on price, and plan for long-term rental income rather than a quick flip.
Please note this is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Oman, or should I wait as of 2026?
Do real estate prices look too high in Oman as of 2026?
As of early 2026, property prices in Oman do not look dramatically overpriced at a national level, but some prime Muscat neighborhoods like Al Mouj and Muscat Hills are definitely priced for buyers with higher incomes or foreign investment capital.
One on-the-ground signal is that transaction volumes in Oman rose 28% year-on-year in late 2024, which suggests buyers are still active rather than walking away from inflated prices.
Another signal is that rental yields in Muscat remain between 6% and 9% for well-located apartments, meaning prices have not completely disconnected from the income properties can generate.
You can also read our latest update regarding the housing prices in Oman.
Does a property price drop look likely in Oman as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Oman over the next 12 months is low, because the market shows steady demand supported by population growth and easing borrowing costs.
The plausible price change range for Oman in 2026 is somewhere between a mild 2% dip in weaker submarkets and a 5% to 7% gain in prime Muscat corridors, with most scenarios pointing to flat or modest growth.
The single macro factor that could most increase the odds of a price drop in Oman is a sudden hit to expatriate employment, since expats make up around 44% of the population and drive much of the rental and purchase demand.
However, with the IMF describing Oman's macro outlook as broadly stable and Vision 2040 infrastructure spending continuing, a major expat exodus seems unlikely in the next 12 months.
Finally, please note that we cover the price trends for next year in our pack about the property market in Oman.
Could property prices jump again in Oman as of 2026?
As of early 2026, the likelihood of a renewed price surge in Oman is medium, because rate relief, continued infrastructure investment, and strong expat inflows could push prices higher in desirable areas.
The plausible upside range for Oman property prices in 2026 is around 5% to 10% in prime Muscat neighborhoods, especially in lifestyle-oriented Integrated Tourism Complexes where foreign buyers concentrate.
The single biggest demand-side trigger that could drive prices to jump again is further interest rate cuts, since Oman's mortgage rates track the US Federal Reserve, and lower borrowing costs bring more buyers into the market.
Please also note that we regularly publish and update real estate price forecasts for Oman here.
Are we in a buyer or a seller market in Oman as of 2026?
As of early 2026, Oman's property market is mildly buyer-leaning overall, though prime Muscat lifestyle areas like Al Mouj, Muscat Hills, and Qurum still favor sellers for well-priced, move-in-ready homes.
Oman does not publish a standardized months-of-inventory figure, but based on transaction volumes and new listing activity, prime submarkets feel tighter than a balanced six-month benchmark while more everyday neighborhoods show softer demand.
Similarly, while Oman lacks a national price-reduction tracker, brokerage commentary suggests that overpriced listings in mid-tier areas like parts of Ghubrah or Mawaleh sit longer, giving buyers room to negotiate.
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.
Are homes overpriced, or fairly priced in Oman as of 2026?
Are homes overpriced versus rents or versus incomes in Oman as of 2026?
As of early 2026, homes in Oman look fairly priced versus rents in most Muscat submarkets, but they appear stretched versus typical local incomes in prime ITC developments where prices cater to higher-earning expats and foreign investors.
The price-to-rent ratio in Oman varies, but a 2-bed apartment in Al Mouj at around OMR 100,000 renting for OMR 754 per month gives a gross yield near 9%, which compares favorably to a balanced benchmark of 5% to 7%.
The price-to-income multiple is trickier because official household income data is not widely published, but prime ITC prices of OMR 150,000 or more can represent 15 to 20 times median Omani household income, which is high by global affordability standards.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Oman.
Are home prices above the long-term average in Oman as of 2026?
As of early 2026, Oman property prices are likely above the 2020 to 2021 lows but not at mania-level peaks, with the official residential price index showing 7.3% year-on-year growth in Q1 2025.
The recent 12-month price change of around 7% is faster than typical pre-pandemic years, which saw flatter or even declining prices in some submarkets as oil revenues fluctuated.
In inflation-adjusted terms, Oman prices appear to have recovered from their prior cycle trough but have not yet exceeded previous highs, suggesting room for growth without obvious bubble risk.
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What local changes could move prices in Oman as of 2026?
Are big infrastructure projects coming to Oman as of 2026?
As of early 2026, the biggest planned infrastructure project with price impact is Sultan Haitham City in Muscat, a flagship modern urban development that could re-rate nearby residential corridors as phases roll out.
Sultan Haitham City is already under development with official project pages on the Ministry of Housing website, and construction is expected to continue through the late 2020s, bringing new amenities and connectivity that should support demand in Muscat's northern and western suburbs.
For the latest updates on the local projects, you can read our property market analysis about Oman here.
Are zoning or building rules changing in Oman as of 2026?
As of early 2026, the most significant building rule change being discussed in Oman is the introduction of mandatory green-building codes phasing in from 2026, which will require developers to meet new thermal and material efficiency standards.
As of early 2026, these new building requirements could modestly raise construction costs in the short term, but over time they should support property values for compliant developments that attract ESG-conscious buyers and institutional investors.
The areas most affected by these rule changes are new master-planned communities in Muscat and secondary cities like Salalah, where large-scale developments must now incorporate sustainability features to obtain permits.
Are foreign-buyer or mortgage rules changing in Oman as of 2026?
As of early 2026, the direction of foreign-buyer rules in Oman is stable with no major restrictions on the horizon, and the core ITC framework that allows foreigners to own freehold property in designated areas remains firmly in place.
The most notable recent change is the January 2025 fee revision that reduced registration fees for Omani nationals from 2% to 1%, while keeping the 3% rate for foreign buyers, so international investors still face higher transaction costs than locals.
On the mortgage side, the Central Bank of Oman capped mortgage registration fees at 0.5% in 2025, making financing slightly cheaper, and rates for expats currently range from 5% to 7.5% depending on residency status and lender.
You can also read our latest update about mortgage and interest rates 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.
Will it be easy to find tenants in Oman as of 2026?
Is the renter pool growing faster than new supply in Oman as of 2026?
As of early 2026, renter demand in Muscat is growing roughly in line with or slightly faster than new supply, driven by Oman's population passing 5.3 million in 2025 and continued expat inflows under Vision 2040 economic diversification.
The clearest demand signal is that Oman's population grew by over 106,000 in the year to mid-2025, with the expatriate population rising by more than 51,000, most of whom settle in Muscat and need rental housing.
On the supply side, building permits rose sharply in some governorates in early 2025, but new completions are concentrated in specific corridors, meaning prime areas like Al Mouj and Qurum can still feel tight while outer suburbs see more competition.
Are days-on-market for rentals falling in Oman as of 2026?
As of early 2026, Oman does not publish a standardized days-on-market for rentals, but rent momentum in prime Muscat areas suggests that well-priced units are letting faster than they were a year ago.
The difference between "best areas" and weaker areas is significant: a 2-bed apartment in Al Mouj or Muscat Hills can let within 2 to 4 weeks if priced correctly, while similar units in less desirable parts of Ghubrah or Al Hail may sit for 6 to 8 weeks or longer.
A common reason days-on-market falls in Oman is the seasonal cycle, with Q3 and Q4 seeing stronger demand as expats relocate ahead of the school year and corporate hiring picks up.
Are vacancies dropping in the best areas of Oman as of 2026?
As of early 2026, vacancy rates in the best-performing Muscat rental areas like Al Mouj, Muscat Hills, Qurum, Shatti Al Qurum, and Madinat Sultan Qaboos appear to be stable or dropping, with strong expat demand keeping quality units occupied.
The vacancy rate in these prime areas is noticeably lower than the Muscat-wide average because they offer lifestyle amenities, walkability, and access to international schools that command tenant loyalty.
One practical sign that these best areas are tightening first is that landlords in Al Mouj are now receiving multiple inquiries within days of listing, and some are achieving rent increases at renewal rather than having to offer discounts to retain tenants.
By the way, we've written a blog article detailing what are the current rent levels in Oman.
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Am I buying into a tightening market in Oman as of 2026?
Is for-sale inventory shrinking in Oman as of 2026?
As of early 2026, it is hard to estimate for-sale inventory changes precisely because Oman does not publish a centralized listings database, but anecdotal evidence suggests prime Muscat inventory is stable to slightly tighter while secondary areas have more available stock.
We estimate months-of-supply in desirable ITC communities like Al Mouj and Muscat Hills is below the typical 6-month balanced benchmark, meaning serious buyers may face competition, while outer neighborhoods show more relaxed conditions.
The most likely reason inventory feels tight in prime areas is that owners who bought at lower prices have little incentive to sell, and new supply in ITCs is absorbed by foreign buyers and returning Omani nationals.
Are homes selling faster in Oman as of 2026?
As of early 2026, Oman does not publish an official median days-on-market for sales, but transaction volumes rose 28% year-on-year in late 2024, suggesting that well-priced homes are indeed selling faster than in prior years.
Year-over-year, the sense from brokers is that quality properties in liquid neighborhoods are spending less time on market, particularly apartments in Al Mouj and villas in Muscat Hills, though overpriced listings still languish.
Are new listings slowing down in Oman as of 2026?
As of early 2026, we are not confident in a precise year-on-year estimate for new for-sale listings in Oman because no central database tracks this, but permit data shows building activity is active rather than collapsing.
The seasonal pattern for new listings in Oman typically sees more activity in Q1 and Q4 when expat relocations peak, with Q2 and Q3 (summer months) being quieter as residents travel abroad.
A plausible reason new listings may be slowing in some prime areas is that current owners locked in lower prices years ago and see no compelling reason to sell in a rising market, preferring to hold for rental income or further appreciation.
Is new construction failing to keep up in Oman as of 2026?
As of early 2026, we estimate there is a meaningful gap between new housing completions and household demand in Oman, with one report citing only 5,500 new units planned for 2025 against rapidly growing population needs.
The recent trend in permits and starts shows activity is picking up in some governorates, especially South Batinah which saw a sharp rise in building permits in H1 2025, but Muscat's prime corridors still face limited new supply.
The biggest bottleneck limiting new construction in Oman is the concentration of foreign-eligible land in designated ITCs, which means developers cannot freely expand supply everywhere demand exists, keeping inventory tight in the most desirable zones.
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.
Will it be easy to sell later in Oman as of 2026?
Is resale liquidity strong enough in Oman as of 2026?
As of early 2026, resale liquidity in Oman is strongest in ITC communities like Al Mouj, Muscat Hills, and Muscat Bay where foreign buyers can legally purchase, meaning you can expect a reasonably quick sale if priced correctly.
We estimate median days-on-market for resale homes in liquid neighborhoods is around 4 to 8 weeks for correctly priced properties, which is comparable to healthy liquidity benchmarks in other Gulf markets.
The property characteristic that most improves resale liquidity in Oman is location within an ITC, because the broader buyer pool (including foreigners) means more potential purchasers and faster transactions.
Is selling time getting longer in Oman as of 2026?
As of early 2026, selling time in Oman appears stable to slightly shorter compared to last year, as transaction volumes are up and buyer confidence has improved with easing interest rates.
The realistic range for median days-on-market across most Oman listings is roughly 4 weeks for well-priced prime properties to 12 weeks or more for overpriced or less desirable homes in secondary locations.
One clear reason selling time can lengthen in Oman is affordability pressure: if you price above what local incomes or expat budgets can support, your property will sit while correctly priced neighbors sell first.
Is it realistic to exit with profit in Oman as of 2026?
As of early 2026, the likelihood of selling with a profit in Oman is medium to high if you hold for at least 5 to 7 years, buy at a fair price, and choose a liquid neighborhood with strong rental demand.
The minimum holding period that makes exiting with profit realistic in Oman is typically 5 years, which allows you to recover transaction costs and benefit from steady price appreciation and rental income.
Total round-trip costs in Oman, including the 3% transfer fee for foreign buyers, agent commissions of 2% to 3%, and legal fees, amount to roughly 7% to 10% of the property value (around OMR 7,000 to OMR 10,000 per OMR 100,000 spent, or approximately USD 18,000 to 26,000 / EUR 17,000 to 24,000).
The single factor that most increases profit odds in Oman is buying below market value through negotiation or off-plan at developer prices, then holding in a high-demand ITC community where expat tenants generate strong rental income.
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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 |
|---|---|---|
| National Centre for Statistics and Information (NCSI) | Oman's official statistics agency, the closest to ground truth for national data. | We used it as the anchor for official macro and real estate releases. We cross-checked private-sector claims against what NCSI reports. |
| Times of Oman | Major national outlet that clearly attributes data to NCSI sources. | We used it for the official residential property price index direction. We treat it as NCSI data through a credible newspaper. |
| Savills Oman Research | Long-established global real estate consultancy with transparent research practice. | We used it for on-the-ground market signals including transaction trends and rent momentum across Muscat submarkets. |
| Central Bank of Oman | Primary source for how policy rates are set and transmitted in Oman. | We used it to frame interest-rate direction and explain why Oman's rates track the US Federal Reserve. |
| Reuters | Top-tier wire service with strong editorial standards for financial news. | We used it to confirm recent GCC rate cuts and Oman's tendency to move with the Fed on borrowing costs. |
| Ministry of Housing and Urban Planning | Official government source for housing policy and major development projects. | We used it to validate Sultan Haitham City as a real infrastructure catalyst and understand where future supply is heading. |
| Royal Decree on ITC Ownership | Official government-hosted legal text for foreign ownership rules in Oman. | We used it to state with confidence where foreigners can legally own property and what that means for demand concentration. |
| IMF Article IV Mission | International institution that evaluates macro stability and economic risks. | We used it for macro risk context including growth, inflation, and fiscal direction as a sanity-check against panic or hype. |
| Muscat Daily | Major local outlet that cites official NCSI and municipal data directly. | We used it for population growth figures and building permit data as demand and supply proxies. |
| Zawya | Widely used regional business platform that typically cites official sources. | We used it as a cross-check on transaction totals and market tone where it clearly attributes data to NCSI. |
| Mordor Intelligence | Market research firm with detailed sector forecasts and methodology disclosure. | We used it for market size projections and growth rate estimates to contextualize Oman's residential sector trajectory. |
| Oman Observer | Mainstream national outlet with specific figures and official ministry references. | We used it to support the idea that connectivity investment is continuing and could shift neighborhood desirability. |
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.
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