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Thinking about buying a 3-bedroom apartment in Al Mouj, Muscat? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other areas like Qurum or Madinat Al Sultan Qaboos where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Oman Property Pack.
Will property prices increase in Oman in 2025?
Yes, property prices in Oman are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Oman is becoming an attractive destination for both local and international investors.
While there are challenges like inflation and potential regulatory changes, the main drivers behind Oman's property price growth remain strong.
The government's efforts to diversify the economy and improve infrastructure are likely to continue attracting investment, supporting the property market's upward trajectory.
Signals pointing to a property price increase in Oman
Here are some factors suggesting prices could increase:
Oman's Vision 2040 plan, which focuses on economic diversification and sustainable development, is expected to boost investor confidence and drive demand for real estate, particularly in urban areas.
The government's initiatives to attract foreign investment, such as easing property ownership regulations for expatriates, are likely to increase demand for residential and commercial properties.
Infrastructure projects, including new roads, airports, and ports, are set to enhance connectivity and accessibility, making certain regions more attractive for property investment.
The tourism sector in Oman is projected to grow, with new resorts and attractions being developed, which could increase demand for properties in tourist-friendly areas.
A stable political environment and strategic location in the Gulf region make Oman an appealing choice for investors looking for long-term growth opportunities.
The introduction of new technologies and smart city initiatives is expected to modernize urban areas, increasing the appeal and value of properties in these locations.
Signals pointing to a property price decrease in Oman
Here are some factors suggesting prices could fall:
Rising inflation and cost of living may impact disposable income, reducing the purchasing power of potential homebuyers and slowing demand.
Potential regulatory changes or delays in implementing economic reforms could create uncertainty, affecting investor confidence and property market dynamics.
Global economic uncertainties, such as fluctuating oil prices, could impact Oman's economy and, in turn, the real estate market, leading to potential price adjustments.
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If property prices go up in Oman, how much would they increase by?
If real estate prices in Oman were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Oman appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Muscat for 85,000 OMR today, don't be surprised if it's priced between 87,550 and 90,950 OMR this time next year.
To give you a better understanding, here is a table that shows 7 types of Omani real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (OMR) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | 90,000 OMR | 92,700 OMR | 94,500 OMR | 96,300 OMR |
| Modern Villa (150 sqm / 1,615 sqft) | 250,000 OMR | 257,500 OMR | 262,500 OMR | 267,500 OMR |
| Luxury Penthouse (200 sqm / 2,153 sqft) | 500,000 OMR | 515,000 OMR | 525,000 OMR | 535,000 OMR |
| Studio (30 sqm / 323 sqft) | 45,000 OMR | 46,350 OMR | 47,250 OMR | 48,150 OMR |
| Loft (80 sqm / 861 sqft) | 160,000 OMR | 164,800 OMR | 168,000 OMR | 171,200 OMR |
| Townhouse (120 sqm / 1,292 sqft) | 350,000 OMR | 360,500 OMR | 367,500 OMR | 374,500 OMR |
| Investment Property (50 sqm / 538 sqft) | 75,000 OMR | 77,250 OMR | 78,750 OMR | 80,250 OMR |
Everything you need to know is included in our Property Pack for Oman
If real estate prices go up in Oman, which areas are likely to see the biggest increases?
Today, people who want to move to Oman are looking for a blend of traditional charm and modern amenities, which Al Mouj Muscat offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Qurum has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Omani market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Al Mouj Muscat | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Qurum | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Muscat. |
| Madinat Al Sultan Qaboos | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Ruwi | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Seeb | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Muttrah | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Al Khuwair | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Ghala | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Al Amerat | Medium-High | Its proximity to Muscat, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Bawshar | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Al Hail | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Al Bustan | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Oman?
In 2025, Oman's real estate trends focus on tech-smart, energy-efficient villas, larger family homes in suburban areas, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Villas:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Muscat and other major cities are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In cities like Muscat, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Oman's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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