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
Why is Oman emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the flourishing tourism sector, or the competitive pricing compared to other international markets? What are the key benefits for investors? We encounter these questions frequently because we are actively engaged with developers, real estate agents, and investors like you. With growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone to benefit from.
Our aim is to present a compelling case for investing in Oman's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect in our content or wish to learn more, please don't hesitate to reach out (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Investing in real estate involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) In this country, you’ll find a clear and investor-friendly legal framework for property ownership
Oman's legal framework for property ownership is clear and investor-friendly.
In 2022, Oman made a significant move by allowing expatriates to own properties outside Integrated Tourism Complexes if they invest over 250,000 OMR. This change not only opens up more opportunities for foreign investors but also offers first-class residency for investments over 500,000 OMR, broadening property ownership options.
Oman's property registration process is straightforward, ensuring a smooth experience for investors. By requiring lease contracts of mortgaged properties to be officially registered, all parties are aware of their rights and obligations, which simplifies real estate procedures.
The rise in foreign property investments is a testament to the attractiveness of Oman's real estate market. By the end of 2022, foreign direct investment in Oman reached 27,135 billion OMR, with significant investments in real estate, leasing, and commercial projects.
Government initiatives like Oman Vision 2040 aim to create a favorable environment for investors by promoting fiscal sustainability. Legal reforms, such as Ministerial Decision No. 292/2020, provide clear guidelines for expatriates on property ownership, enhancing their property rights.
Omani real estate law is transparent, with clear provisions governing real estate procedures. This transparency ensures that all parties are aware of their rights and obligations, contributing to a stable and secure investment environment.
Sources: Lexis, Oman Licenses, FM Oman, IMF eLibrary, Fanar
2) In Oman, you’ll find competitive mortgage rates that make buying property easier
Oman's banking sector offers competitive mortgage rates, making it easier for people to buy property.
In 2024, the bank lending rate in Oman was 5.604% per annum, reflecting a stable and competitive environment for mortgages. This stability is crucial for making home loans more affordable, allowing more people to consider buying a home.
Omani banks are heavily invested in mortgage products, with 75% of their total assets in loans as of 2022. This focus indicates a strong mortgage market, offering various options for potential homeowners. The growth in credit to the private sector, including personal loans and mortgages, further enhances the accessibility of property purchases.
Government initiatives also support home ownership, often through financial incentives like subsidies and low-interest loans. These efforts make buying property more feasible for many people, as seen in the increase in property transactions and rising consumer confidence in the market.
For those considering a move to Oman, the combination of competitive mortgage rates and supportive government policies creates a favorable environment for property investment. The banking sector's focus on mortgages and the government's role in promoting home ownership are key factors in this dynamic.
As a potential buyer, understanding these elements can help you navigate the property market in Oman more effectively. The stability in interest rates and the variety of mortgage options available are significant advantages for anyone looking to invest in property here.
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.
3) Oman's multicultural real estate market is driven by its diverse expatriate community
Oman's real estate market is a vibrant mix of cultures, thanks to its diverse expatriate community.
With over 1.8 million expatriates calling Oman home, the demand for rental properties has skyrocketed. This has led to the creation of integrated housing projects that cater to a wide range of cultural needs, making the market truly multicultural.
Expatriates from countries like Bangladesh, India, Pakistan, and the Philippines bring their unique preferences, which are reflected in the real estate offerings. Developments now include amenities such as retail outlets and dining options that appeal to different cultural tastes.
Government policies have played a crucial role by allowing expatriates to own property in specific areas. This move has encouraged more expatriates to invest in Omani real estate, further diversifying the market.
The presence of international schools and businesses catering to expatriates highlights the demand for services that support a multicultural lifestyle. This has made Oman an attractive destination for those seeking a blend of cultures.
Oman's real estate market is not just about properties; it's about creating a community where varied nationalities feel at home, making it a unique place to invest and live.
Sources: Zawya, MarkNtel Advisors, Connsect
4) Oman's beautiful coastlines are perfect for luxury waterfront investments, attracting high-end buyers
Oman's stunning coastlines are becoming a hotspot for luxury waterfront properties, drawing in high-end investors.
In Muscat, there's a noticeable surge in demand for these upscale homes, and experts predict this trend will continue with an annual growth rate of 3.7% from 2024 to 2029, according to the Hamptons International Oman's report. This makes Muscat a promising area for those looking to invest in prime real estate.
Property values in these coastal regions are climbing, making them even more attractive. The same report highlights that high-end waterfront properties are a key driver of the residential market's growth, potentially reaching a market volume of $358 billion by 2029. This boom is fueled by economic growth and increased foreign investment, as noted by Sands Of Wealth.
The Omani government is also stepping up, with initiatives to boost tourism and real estate. They're planning to add over 16,500 hotel rooms and 42,500 housing units, aiming to lure in foreign investors, as reported by Business Startup Oman. These plans are part of a broader strategy to diversify the economy and enhance the country's appeal.
Adding to the allure, Oman is developing world-class marinas and ports, which are expected to boost marine tourism. This development is likely to increase the demand for waterfront properties, as highlighted by Muscat Daily. The combination of natural beauty and modern amenities makes these areas particularly appealing.
For those considering an investment, Oman's coastal properties offer a unique blend of scenic beauty and economic potential. The ongoing developments and government support make it a compelling choice for high-end investors looking for a slice of paradise.
Sources: Hamptons International Oman's Report, Business Startup Oman, Muscat Daily, Sands Of Wealth
5) Special economic zones in Oman offer new opportunities for residential and commercial real estate
The development of special economic zones (SEZs) in Oman is creating exciting new opportunities in real estate.
Thanks to these zones, Oman has seen a 20% surge in investments in the first half of 2024, with the total surpassing RO20.1 billion. The Special Economic Zone at Duqm (SEZAD) is a standout, experiencing a 55% growth in new investments year-on-year, reaching RO2.1 billion. This boom is largely due to Oman's strategic location and its business-friendly policies, which are attracting foreign investors.
Oman's free zones are particularly appealing because they offer 100% ownership and tax-free profits for 30 years. This has led to a rise in business activities, increasing the demand for both commercial and residential spaces. Infrastructure projects like the Khazaen Land Port and the Khazaen Central Market for vegetables and fruits are also driving property demand in nearby areas.
The influx of investments is not just about money; it's also about people. The Omanisation rate has hit 34% with over 75,000 workers in these zones, leading to job creation and population growth. This naturally boosts the demand for housing and commercial spaces, making it a golden opportunity for real estate developers and investors.
For those considering buying property in Oman, these SEZs offer a unique chance to tap into a growing market. The combination of strategic location, attractive incentives, and a rising workforce makes these zones a hotbed for real estate development.
Sources: GCC Business Watch, FM.gov.om, Oman Observer
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6) Foreigners can now own freehold properties in Oman, thanks to integrated tourism complexes, expanding the market
The introduction of Integrated Tourism Complexes (ITCs) in Oman has made it possible for foreigners to own freehold properties, opening up the real estate market.
In 2023, Oman took a big step by approving 19 Integrated Tourism licenses, with a hefty investment of US$11.37 billion in hospitality and real estate. This move brought in over 16,500 hotel rooms and 42,500 housing units across the country, making it much easier for foreigners to dive into the Omani real estate scene.
Thanks to Royal Decree No. 12/2006, foreigners can now own real estate in designated ITCs, which are specially designed for foreign residents. These areas offer a legal framework that encourages foreign ownership, and with zero property taxes in these zones, it's a pretty sweet deal for international buyers.
The tourism sector is booming, with its GDP contribution jumping by almost 35% in 2023, reaching 2.8 billion Omani Riyals ($7.2 billion). This growth is expected to keep climbing, with projections showing it could hit more than 3.3 billion Omani Riyals ($8.5 billion) in 2024. ITCs play a crucial role in this economic diversification, boosting the tourism industry and increasing property values within these complexes.
Take Al Mouj Muscat, for example. It's Oman's first ITC project and a shining example of how these complexes draw in foreign buyers. This luxurious waterfront development comes with a golf course and a marina, showcasing the allure of ITCs to international investors.
Sources: JLL, Oman Licenses, Skift
7) With a young and growing population, there’s a rising demand for housing
Oman's housing market is booming, thanks to its young and growing population.
With a population growth rate of 6.527% in 2023, Oman saw an increase of over half a million people by 2024. This surge means more folks are looking for homes, as births outpace deaths.
The median age in Oman is just 29 years, so many are in their late 20s and early 30s, prime time for buying or renting homes. Plus, the country has a higher-than-average number of young males, all likely in the market for housing.
Urbanization is another big factor. As people flock to cities for better opportunities, the demand for housing types like apartments and villas is rising. This urban shift is fueling the need for more homes.
The residential real estate market in Oman is on the rise, with expectations to hit USD 4.38 billion in 2024. This growth is set to continue, making it an exciting time for property buyers.
Sources: Country Meters, Mordor Intelligence, Trading Economics
8) With tourism on the rise, Oman is perfect for short-term rental investments
Oman's tourism is booming, with 4 million visitors in 2023 and expectations to hit 11.7 million by 2040.
This influx of tourists is driving up the need for places to stay, especially short-term rental properties. In 2024, hotel occupancy for three-to-five-star hotels in Oman jumped to 47.8% in the first half of the year, showing a clear demand for more diverse lodging options.
The Omani government is actively boosting tourism with initiatives like extending the 'Khareef' season and teaming up with Gulf nations for tourism campaigns. In 2023, they approved 19 Integrated Tourism licenses, paving the way for thousands of new hotel rooms and housing units, which is great news for the short-term rental market.
Oman's location as a gateway to the Middle East, along with its unique cultural and natural attractions, makes it a hot spot for travelers. The new unified GCC-wide tourism visa simplifies travel across the region, likely increasing tourist numbers and the need for short-term rentals.
With these developments, Oman is not just a stopover but a destination in its own right. The government's strategic moves and the country's appeal are setting the stage for a thriving short-term rental market, catering to the diverse needs of international visitors.
As more tourists flock to Oman, the demand for short-term rentals is expected to rise, offering potential buyers a lucrative opportunity in the property market. The combination of government initiatives and increasing tourist numbers makes investing in short-term rentals in Oman a promising venture.
Sources: Oman Observer, JLL, Skift
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.
9) Oman's Vision 2040 plan means big investments in housing and urban growth
The government's Vision 2040 plan is all about boosting housing and urban development.
In 2023, the government set aside RO900 million for development projects, with a big chunk aimed at housing and urban growth. This shows they're putting their money where their mouth is to make these areas better.
Oman is also green-lighting new residential and commercial projects. For example, in 2023, they approved 19 Integrated Tourism licenses, which means a whopping US$11.37 billion is being invested. This will create over 16,500 hotel rooms and 42,500 housing units nationwide, showing a serious push to expand housing options.
The government is teaming up with international developers to boost urban infrastructure. Thanks to laws that encourage public-private partnerships, they're on track to build affordable housing and spruce up urban areas, all in line with Vision 2040.
Sources: OER Live, JLL, Gulf Construction Online
10) With better healthcare, Oman is seeing more medical tourists, boosting demand for nearby rentals
Oman's healthcare system is becoming a magnet for medical tourists from around the world.
With significant investments in projects like the Sultan Qaboos Medical City and the International Medical City, Oman is enhancing its healthcare infrastructure. These developments are not just about buildings; they bring in foreign expertise and cutting-edge technology, raising the standard of care available.
The government is pushing forward with initiatives like Health Vision 2050, aiming to build a responsive healthcare system. By collaborating with international medical institutions, Oman has introduced high-quality centers and specialist treatments, making it a go-to place for advanced medical procedures.
Medical tourism is on the rise in Oman, with the market size expected to grow. This influx of international patients is driving up demand for accommodations near major hospitals. As a result, hotel revenues and occupancy rates are climbing, showing the economic impact of medical tourism on local businesses.
For those considering property investment, this trend means potential opportunities in the hospitality sector. Properties near healthcare facilities are becoming more valuable, as they cater to the needs of medical tourists and their families.
Oman's strategic location and improved healthcare services are turning it into a hub for medical tourism, which in turn is boosting the local economy. This makes it an attractive option for property buyers looking to capitalize on the growing demand for accommodations.
Sources: Humancare Worldwide, Skift, Polaris Market Research
11) In Oman, property investors can get long-term residency visas, simplifying living and working there
Oman is making it easier for property investors to settle in the country by offering long-term residency visas.
Launched in 2021, this program allows investors to apply for a 5 or 10-year visa, which can be renewed. By August 2023, 2,700 resident cards had been issued, showing the program's success. The real estate sector, a major focus for these investments, experienced a 6% growth in trading volume in 2023, reflecting a positive response from foreign investors.
Investors from Kuwait, India, and the UAE are particularly interested in Oman's real estate market. This influx of investment not only boosts the economy but also aims to create more job opportunities for locals.
Oman's strategic location and stable political environment make it an attractive destination for investors. The government’s initiative is designed to stimulate economic growth by making it easier for investors to live and work in the country.
With the introduction of these visas, Oman is positioning itself as a competitive player in the global real estate market. The program is part of a broader effort to diversify the economy and reduce reliance on oil revenues.
For those considering investing in Oman, the long-term residency visa offers a unique opportunity to become part of a growing and dynamic market. This trend is particularly notable in the real estate sector, where foreign investments are playing a crucial role in economic development.
Sources: Uglobal, ZAWYA, Soland
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12) With the economy diversifying beyond oil, Oman offers new real estate opportunities
Oman is shifting its focus from oil, creating new opportunities in real estate.
With the government pouring money into sectors like construction and manufacturing, the demand for infrastructure and commercial spaces is rising. This shift is not just about buildings; it's about creating a vibrant economy that doesn't rely solely on oil. Imagine bustling new districts filled with businesses and services, all needing space to grow.
Special economic zones and free zones are popping up, attracting international businesses with perks like 100% foreign ownership in tourism projects. These zones are becoming hotspots for commercial properties, thanks to Oman's strategic push to become a logistics hub. Ports and airports are getting upgrades, making the country more connected and appealing to global investors.
Tourism is another big player in this real estate boom. Oman aims to welcome 11 million visitors annually by 2040, sparking a surge in hotel investments. This influx of tourists means more hotels, resorts, and hospitality properties are needed, driving up demand in the real estate market.
Government policies are making it easier for foreigners to own property, especially in the tourism sector. This is a game-changer for international investors looking to tap into Oman's growing market. The country's open-door approach is turning it into a hot spot for real estate investment.
Oman's strategy to diversify its economy is not just a plan on paper; it's a reality that's reshaping the real estate landscape. The focus on non-oil sectors is creating a dynamic environment where new opportunities are constantly emerging.
Sources: Kane Bridge News ME, Global Business Outlook, Nomad CG, AECOM Publications
13) Oman's e-commerce boom boosts demand for logistics and warehousing spaces
The e-commerce scene in Oman is booming, with the market expected to hit USD 0.66 billion by 2024.
This surge is driving a huge demand for logistics and warehousing to keep up with online shopping trends. As more businesses jump into the e-commerce game, the pressure is on to expand and upgrade existing infrastructure. The government's National Digital Economy Program is also playing a big role, pushing for a digital society and further fueling the need for logistics spaces.
Oman's high internet and smartphone usage is another key player here. With 97.8% internet penetration and 95% of users on smartphones, online shopping is becoming the norm. This shift means logistics and warehousing solutions need to be top-notch to handle the growing number of online orders.
Delivery and logistics companies are stepping up, investing in infrastructure to meet this demand. The expansion of these companies is a direct response to the e-commerce boom, with new investments becoming more common to support the logistics needs of online retailers.
For anyone considering property investment in Oman, this trend is worth noting. The rise in e-commerce is not just about online shopping; it's about the increased need for logistics and warehousing spaces to support this digital shift.
As the market continues to grow, the demand for logistics real estate is expected to rise, making it a potentially lucrative area for investment. The e-commerce boom is reshaping the landscape, and creative solutions are needed to address the high demand and limited space.
Sources: Mordor Intelligence, DataReportal, Vanderlande
14) With advanced telecommunications, you’ll find great opportunities in smart homes and tech-friendly properties here
Oman's telecommunications advancements are transforming the real estate market, especially for smart homes and tech-friendly properties.
With the rapid expansion of 5G networks, Oman is on track to have 100% of its base stations supporting 4G and 5G services by 2025. This means you'll enjoy faster internet speeds and more reliable connections, which are crucial for smart home devices to work seamlessly. Imagine controlling your home's lighting, security, and climate with just a tap on your phone, all thanks to these advancements.
The government is playing a big role here. The Telecommunications Regulatory Authority (TRA) has set a clear path for 5G deployment, ensuring major telecom companies have the spectrum they need. This support is building a strong digital infrastructure, making it easier to integrate smart home tech into daily life. It's like having a solid foundation for a high-tech lifestyle.
People are catching on too. Muscat is among the top 10 world capitals for fastest 5G speeds, sparking interest in smart home devices and IoT products. This growing curiosity is a sign that the market for tech-friendly properties is on the rise. More folks are looking to upgrade their homes with the latest gadgets and systems.
The TRA is also working to enhance digital infrastructure by aiming for 75% of buildings to be covered by fibre optic networks by 2025. This is key for ensuring smart homes operate efficiently. Fibre optics mean faster data transfer, which is essential for running multiple smart devices without a hitch.
Sources: Developing Telecoms, Ookla, GlobeNewswire, Telecom Review, Telecom Review
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.
15) With more international students, Oman’s growing education sector increases rental demand
Oman's education sector is booming, drawing in international students and increasing rental demand.
With over 40 higher education institutions in 2023, Oman is becoming a hub for tertiary education. The country's gross enrollment ratio stands at 45.59%, reflecting a vibrant student community. This makes Oman an appealing choice for students from around the globe.
The Omani government is actively expanding its higher education infrastructure. New laws now allow foreign universities to set up branches in Oman, aiming to build specialized national competencies and attract top talent. This strategy not only diversifies educational programs but also positions Oman as a prime destination for international students.
Encouraged by the Higher Education Law, partnerships between Omani and international universities are flourishing. These collaborations broaden the range of programs and study areas, making Oman even more attractive to students worldwide. The development of new educational hubs and campuses is a key part of this strategy, aligning with Oman’s sustainable development goals.
These educational advancements are not just about academics; they are reshaping the real estate market too. As more students flock to Oman, the demand for rental properties is on the rise, creating opportunities for property investors.
Sources: University World News, Trading Economics
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.