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Property prices in Oman are experiencing significant upward momentum as we reach mid-2025, with strong performance across most residential segments. As of June 2025, Oman's residential real estate market has demonstrated remarkable resilience and growth, driven by economic diversification, foreign investment, and government initiatives under Vision 2040. The market has rebounded strongly from previous lows, with property values surging approximately 60% since 2022, marking a decisive recovery phase for the Sultanate's real estate sector.
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Oman's property market is experiencing robust growth in 2025, with apartment prices surging 17% in Q1 2025 and overall residential property prices jumping 7.3% year-on-year.
The market recovery from 2022 lows has been dramatic, with prices increasing by approximately 60% over the past three years, driven by Vision 2040 initiatives, foreign investment, and economic diversification efforts.
| Market Indicator | Current Status (2025) | Key Details |
|---|---|---|
| Overall Price Growth | +7.3% (Q1 2025 YoY) | Residential property prices led by land value increases |
| Apartment Prices | +17% (Q1 2025) | Strongest growth segment, particularly in Muscat |
| Villa Prices | +6.4% (May 2025) | Steady appreciation in luxury segments |
| Average Price (Muscat) | OMR 1,000-1,200/sqm | USD 2,080-2,600 per square meter |
| Rental Yields | 3-8% | Apartments: 3-5%, Villas: 4-6% |
| Market Size | USD 4.78 billion | Expected to reach USD 7.42 billion by 2030 |
| Foreign Investment | Over OMR 25 billion | FDI exceeded this milestone by Q3 2023 |
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.
How much have property prices increased in Oman during 2025?
Property prices in Oman have experienced substantial growth in the first half of 2025, with the most dramatic increases occurring across multiple residential segments.
According to the National Center for Statistics and Information (NCSI), residential property prices surged 7.3% year-on-year in Q1 2025, representing one of the strongest growth periods in recent years. This increase was primarily driven by a 6.5% rise in residential land prices, which form the largest component of the real estate index.
The apartment sector has shown particularly impressive performance, with prices jumping 17% in May 2025 alone, while villa prices gained 6.4% during the same period. Other residential units increased by 2.2%, contributing to an overall residential real estate price index growth of 5.5% quarter-on-quarter for the first three months of 2025.
At the governorate level, Muscat led the price growth with a remarkable 17.4% increase in residential land values year-on-year in Q1 2025, demonstrating the capital's continued dominance in the property market. This growth trajectory represents a continuation of the recovery that began in 2022, when the market started rebounding from previous lows.
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What are the current average property prices per square meter in Oman?
As of mid-2025, property prices in Oman vary significantly by location and property type, with Muscat commanding the highest prices in the country.
In Muscat, the average residential property prices range from OMR 1,000 to OMR 1,200 per square meter (approximately USD 2,080 to USD 2,600 per square meter) for prime locations within Integrated Tourism Complexes (ITCs). For standard residential areas, prices typically range from OMR 800 to OMR 1,000 per square meter.
Apartments in Muscat ITCs command premium prices, averaging OMR 1,000-1,200 per square meter, while villas and townhouses are priced at OMR 750-1,000 per square meter. These ITCs, including Al Mouj, Muscat Hills, and Muscat Bay, represent the highest-value segments of the market due to their freehold ownership rights for foreigners and superior amenities.
Outside Muscat, property prices are considerably more affordable. In Salalah, average prices hover around OMR 900 per square meter, while Sohar offers properties at approximately OMR 800 per square meter. These secondary cities provide attractive entry points for investors seeking growth potential at lower price points.
The overall average property price in Oman ranges from USD 208,000 to USD 520,000 for residential properties, with significant variations based on location, property type, and amenities.
Which regions in Oman are experiencing the fastest property price growth?
Muscat continues to lead Oman's property market growth, with several specific areas within the capital showing exceptional performance as of 2025.
| Region/Area | Price Growth Rate | Key Growth Drivers |
|---|---|---|
| Muscat (Overall) | 17.4% (Q1 2025) | Leading the national market with government initiatives, foreign investment, and luxury developments in ITCs |
| Al Mouj | 10-20% rental growth | Premium waterfront location, luxury amenities, strong expat demand, and full freehold ownership rights |
| Qurum | 5-15% rental growth | Upmarket suburb with excellent connectivity, modern developments, and proximity to business districts |
| Salalah (Dhofar) | Moderate growth | Tourism boom, new resort developments, government focus on southern region development under Vision 2040 |
| Al Duqm | Industrial-led growth | Special Economic Zone expansion, logistics hub development, spillover residential demand from industrial growth |
| Sohar | Steady appreciation | Industrial and logistics development, port expansion, improved infrastructure connectivity |
| Batinah Region | Emerging growth | Infrastructure projects including road dualizations, improved connectivity to Muscat, Vision 2040 development focus |
What factors are driving property price increases in Oman in 2025?
Multiple interconnected factors are fueling Oman's property price growth in 2025, creating a robust foundation for sustained market appreciation.
Vision 2040 represents the primary catalyst, with the government's economic diversification strategy driving substantial infrastructure investments and development projects. This comprehensive plan focuses on reducing oil dependency and developing sectors like tourism, manufacturing, and logistics, all requiring significant real estate infrastructure. Urban renewal projects like Sultan Haitham City and The Sustainable City – Yiti are raising property values by approximately 3% annually in affected areas.
Foreign investment has surged dramatically, particularly from GCC countries, India, Pakistan, and the UK. By the third quarter of 2023, foreign direct investments exceeded OMR 25 billion, with over 3,400 investors from 60 countries securing long-term residency visas. This influx has created substantial demand for premium properties, especially in ITCs where foreigners can hold freehold titles.
The expatriate population surge has been remarkable, increasing by 33% between 2022 and 2023. This demographic shift has driven both rental and purchase demand, particularly in Muscat's luxury waterfront projects and integrated communities. Expatriates now constitute 40% of Oman's population and account for a large portion of residential demand.
Regulatory reforms have significantly enhanced market attractiveness. The Draft Real Estate Law of 2025 consolidates fragmented legislation and streamlines processes, while expanded foreign ownership rights now allow usufruct agreements up to 99 years. Additionally, Oman maintains favorable taxation with no property taxes or personal income tax on rental income.
Infrastructure development continues at pace, with 5,500 new residential units expected to enter the market in 2025 as part of the plan to deliver 62,800 new units by 2030.
How do current property prices compare to pre-pandemic levels?
Oman's property market has demonstrated remarkable recovery and growth since the pandemic, with current prices substantially exceeding pre-2020 levels in most segments.
The market experienced a significant downturn from 2015-2021, with prices falling approximately 30% due to oversupply and economic slowdown. However, the recovery began in earnest in 2022, and prices have since rebounded by approximately 60% from their lows, representing one of the most dramatic recoveries in the regional market.
Most premium areas, particularly in Muscat's ITCs and luxury waterfront developments, have not only fully recovered but now exceed 2020 price levels by 10-25%. Secondary locations are following suit, though at a more measured pace. The net change from 2020 to 2025 shows that prime Muscat properties have gained 15-30% above pre-pandemic values.
This recovery has been supported by fundamental changes in market dynamics. Unlike the pre-pandemic period, which suffered from oversupply and limited foreign investment, the current growth is underpinned by genuine demand drivers including economic diversification, improved foreign ownership laws, and substantial infrastructure investment.
The transformation is particularly evident in rental markets, where quality properties in established locations now command premium rates, with landlords often receiving multiple offers. This represents a complete reversal from the oversupplied conditions that characterized much of the pre-pandemic period.
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What are the property price forecasts for 2026 and beyond?
Property price forecasts for Oman remain overwhelmingly positive, with multiple factors supporting sustained growth through 2026 and the next decade.
For 2026, experts predict continued price appreciation of 3-7%, with consensus around 4% annual growth for mainstream residential properties. This follows the strong performance in 2025 and reflects ongoing economic momentum driven by Vision 2040 implementation.
The five-year forecast (2025-2030) is particularly optimistic, with average house prices expected to rise by 23.4% over the period, translating to approximately 4% annual appreciation. This growth trajectory is supported by sustained infrastructure investment, population growth, and economic diversification efforts.
Looking at the 10-year outlook (2025-2035), sustained growth is anticipated with annual increases of 3-5% expected, barring major economic shocks. The foundation for this optimism rests on Vision 2040's comprehensive development strategy, which extends through 2040 and encompasses massive infrastructure, tourism, and economic diversification initiatives.
The 20-year perspective suggests long-term growth underpinned by economic transformation, population growth, and ongoing infrastructure development. However, the pace may moderate as the market matures and reaches higher absolute price levels.
Regional variations are expected to persist, with Muscat and ITCs likely maintaining premium growth rates, while secondary cities like Salalah and Sohar may experience accelerated appreciation as development focus expands beyond the capital.
Which property types are seeing the biggest price increases?
Luxury properties and modern developments are leading price appreciation across Oman's residential market, with clear differentiation between segments.
| Property Type | Price Trend 2024-2025 | Market Dynamics |
|---|---|---|
| Luxury Villas/Penthouses | +5-7% | Highest growth segment, particularly in ITCs and Muscat waterfront. Strong demand from foreign investors and high-net-worth individuals |
| Modern Villas | +3-5% | Strong demand in new master-planned projects with smart home technology and sustainable features. Popular with families and tech professionals |
| ITC Apartments | +3-5% | High demand for freehold apartments in integrated communities. Strong rental yields and capital appreciation potential |
| Townhouses | +3-4% | Gaining popularity among families seeking community living with amenities. Good balance of space and affordability |
| Studios/Affordable Units | +2-3% | Driven by expat and young professional demand. High rental demand but more moderate capital appreciation |
| Waterfront Properties | +6-8% | Premium segment with limited supply and high demand. Tourism sector growth supporting appreciation |
The luxury villa and penthouse segment continues to outperform, with properties in Al Mouj, Muscat Hills, and other premium developments seeing the steepest price increases. These properties benefit from scarcity value, superior amenities, and strong foreign demand.
Sustainable and tech-enabled properties are emerging as a distinct high-growth category, with nearly 80% of new developments in Muscat featuring smart home technology and environmental certifications. This trend aligns with Vision 2040's sustainability goals and appeals to environmentally conscious buyers.
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How do Oman's property prices compare to neighboring Gulf countries?
Oman's property market offers competitive pricing compared to other Gulf Cooperation Council countries, providing attractive value propositions for investors and residents.
Compared to the UAE, Oman's property prices remain significantly lower. While Dubai apartment prices average OMR 1,400-1,850 per square meter and Abu Dhabi ranges from OMR 1,350-1,750 per square meter, Muscat's ITCs average OMR 1,000-1,200 per square meter. This represents a 20-30% discount to major UAE markets while offering similar amenities and lifestyle quality.
Against Saudi Arabia, Oman shows mixed positioning. Riyadh averaged approximately OMR 515-600 per square meter in 2025, making it more affordable than Oman's premium segments but comparable to secondary markets. However, Saudi Arabia experienced 10.7% year-on-year price growth in Q1 2025, outpacing Oman's growth rate.
Qatar's market shows interesting parallels, with Doha averaging OMR 750-1,050 per square meter, making it broadly comparable to Oman's main markets. However, Oman offers superior rental yields in many segments, with apartments yielding 3-5% and villas 4-6%, which often exceed yields available in Doha.
Kuwait and Bahrain present similar value propositions to Oman, though with different market dynamics. Oman's advantage lies in its liberal foreign ownership laws in ITCs, which provide clearer investment pathways for international buyers compared to some neighboring markets.
The key differentiator for Oman is the combination of relatively affordable pricing, strong rental yields, favorable taxation (no property taxes), and clear foreign ownership rights in designated areas. This combination makes Oman particularly attractive for investors seeking Gulf exposure at more accessible price points.
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 impact is Vision 2040 having on property prices?
Vision 2040 is serving as the primary catalyst for Oman's property market transformation, with its comprehensive economic diversification strategy creating substantial real estate demand and price appreciation.
The initiative's focus on infrastructure development has generated immediate property value increases. Major projects like Sultan Haitham City, planned to accommodate 100,000 people in 20,000 new residences, are raising property values by approximately 3% annually in surrounding areas. The project encompasses 19 integrated residential communities with comprehensive amenities, demonstrating the government's commitment to sustainable urban development.
Economic diversification efforts under Vision 2040 are reducing oil dependency and attracting foreign investment across multiple sectors. The plan targets tourism growth to 11.7 million international and domestic visitors by 2040, with government investment of $51 billion in the tourism sector. This massive investment is driving demand for both tourism-related properties and residential developments to support the growing workforce.
Urban development initiatives are reshaping residential markets nationwide. Plans for future sustainable cities in Salalah, Nizwa, Sohar, and Muscat, spanning 5 million square meters, are creating anticipation and demand that supports current price appreciation. These developments incorporate smart city technology and environmental sustainability, aligning with global trends and attracting environmentally conscious investors.
The manufacturing and logistics focus under Vision 2040 is creating employment opportunities that drive residential demand. Special Economic Zones and Industrial and Logistics Zones are establishing business hubs that require supporting residential infrastructure, creating sustained demand for housing in strategic locations.
Vision 2040's emphasis on human capital development and youth empowerment is creating a more educated workforce that demands higher-quality housing, supporting premium property segments and driving market sophistication.
How have recent regulatory changes affected property prices?
Recent regulatory reforms have significantly enhanced Oman's property market attractiveness, contributing substantially to current price appreciation trends.
The Draft Real Estate Law of 2025 represents the most significant regulatory development, consolidating fragmented legislation and streamlining property transaction processes. This enhanced transparency and efficiency has increased investor confidence, particularly among foreign buyers who previously faced regulatory uncertainty. The law's emphasis on market transparency has reduced transaction costs and time, making property investment more attractive.
Foreign ownership regulations have undergone transformative changes that directly impact property demand and pricing. The expansion of freehold ownership rights in designated ITCs, combined with usufruct agreements extending up to 99 years, has opened substantial new demand from international investors. Over 3,400 investors from 60 countries secured long-term residency visas by end-2023, creating direct property demand.
Long-term residency visa programs linked to property investment have created new buyer categories. Investors can obtain 5-year residency by investing at least OMR 250,000 in property, or 10-year residency with OMR 500,000 investment. These programs have attracted substantial foreign capital, with property-linked investment visas driving premium segment demand.
Taxation advantages remain a significant regulatory attraction. Oman maintains no property taxes or personal income tax on rental income for individuals, providing superior net returns compared to many international markets. The primary property-related tax is the 3% transfer tax, which remains competitive regionally.
Mortgage financing regulations have been liberalized, with typical down payments of 20% and competitive interest rates ranging from 4.00% to 6.30%. This improved financing accessibility has expanded the pool of qualified buyers, supporting price appreciation across multiple market segments.
What are the current rental yields in Oman's property market?
Oman's rental market offers attractive yields that compare favorably with regional markets, though performance varies significantly by property type and location.
Apartment rental yields in prime Muscat locations range from 6% to 9%, with city center properties achieving around 8.51% due to high demand from expatriates and business professionals. Properties outside city centers typically yield approximately 6.94%, reflecting lower rental rates but also reduced purchase prices.
Villa and townhouse yields are generally more modest, ranging from 4% to 6% in prime areas, with luxury waterfront villas often at the lower end due to their high capital values. However, well-located family villas in established communities can achieve yields approaching 6%, particularly those with good school access and amenities.
Net yields for apartments average 3-5%, while villas and townhouses typically provide 4-6% net returns in prime areas. These figures account for property management costs, maintenance, and vacancy periods, providing realistic return expectations for investors.
The rental market demonstrates strong fundamentals, with Muscat experiencing approximately 85% occupancy rates in quality developments. Landlords in many neighborhoods are experiencing a "landlord's market" with multiple offers for quality properties, indicating strong underlying demand that supports both rental rates and capital appreciation.
Beachfront and luxury properties command premium rental rates, with beachfront villas typically renting for around OMR 2,000 per month. Standard villas in Muscat Hills average OMR 900-1,500 monthly, depending on size and amenities.
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What is the outlook for property demand in Oman through 2026?
Property demand in Oman is expected to strengthen significantly through 2026, supported by multiple convergent factors creating sustained market momentum.
Population growth remains a fundamental driver, with Muscat's population growing at rates ranging from 2.5% to 11.2% annually over the past decade. Urbanization continues accelerating, with 85.44% of Omanis now living in cities, driven by a high urbanization rate of 5.25% annually. This demographic shift creates sustained housing demand as people migrate to urban centers for employment and lifestyle opportunities.
Foreign resident demand shows no signs of abating. The 33% surge in expatriates between 2022-2023 established a new baseline of demand that continues growing. Long-term residency visa programs are attracting sustained international interest, with real estate investment serving as a primary pathway to residency. By Q3 2023, foreign direct investment exceeded OMR 25 billion, indicating substantial committed interest in the market.
Supply dynamics support continued demand strength. While Oman plans to add 5,500 new residential units in 2025 as part of delivering 62,800 units by 2030, demand in prime areas continues outpacing supply. The focus on quality developments with integrated amenities means new supply often commands premium pricing rather than creating downward price pressure.
Tourism sector growth under Vision 2040 will create additional demand for both short-term rental properties and housing for tourism industry workers. With tourism targets of 11.7 million visitors by 2040 and $51 billion in sector investment, this represents a substantial new demand source.
Economic diversification continues creating employment opportunities across multiple sectors, from manufacturing and logistics to technology and services. This job creation drives housing demand from both domestic and international workers attracted to expanding opportunities in Oman.
Conclusion
Based on comprehensive analysis of current market data, regulatory environment, and fundamental drivers, property prices in Oman are experiencing strong upward momentum and this trend is expected to continue through 2025 and beyond.
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.
Oman's property market in 2025 represents one of the Gulf region's most compelling investment opportunities, combining affordable entry points with strong growth fundamentals.
The confluence of Vision 2040 implementation, foreign investment surge, and regulatory reforms has created a market environment supporting sustained price appreciation across multiple property segments.
Sources
- House Prices in Oman - Imtilak Global
- Oman Real Estate Market Performance 2024 - Cavendish Maxwell
- Steady Growth in Oman's Real Estate Market - Kanebridge News
- Muscat Property Market Analysis - Sands Of Wealth
- Average House Prices Forecast - Savills Oman
- Oman Price Forecasts - Sands Of Wealth
- Muscat Real Estate Trends - Sands Of Wealth
- Best Cities for Real Estate Investment in Oman - IRE Oman
- Oman Real Estate Market Growth - Zawya
- Oman Vision 2040 Impact on Real Estate - Imtilak Global