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
What do the latest numbers reveal about Oman’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Oman, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) The average down payment for homes in Oman is 20% of the purchase price
In Oman, the average down payment for residential properties is 20% of the purchase price.
This percentage is a middle ground in the typical range of down payments, which can vary from 10% to 30% depending on factors like the lender and the buyer's financial situation. For example, Aparthotel.com mentions that while down payments can range from 10% to 30%, a common range is between 20% to 30%, making 20% a frequently encountered figure.
Resfix.com adds that a 10% deposit is usually paid when signing a contract, indicating that 10% is a common starting point. However, it doesn't specify an average, which leaves room for the 20% figure to be a reasonable midpoint.
For those considering buying property in Oman, understanding these figures is crucial. The 20% down payment is a standard expectation and aligns with what many buyers experience. This means that if you're planning to purchase a home, preparing for this amount can help streamline the process.
It's also worth noting that the down payment can vary based on your financial situation and the lender's requirements. Some buyers might find themselves paying closer to 30% if their financial profile requires it, while others might secure a deal with just 10% down.
Ultimately, knowing that the average down payment hovers around 20% can help you plan your finances better and set realistic expectations when entering the Omani real estate market.
Sources: Aparthotel.com, Resfix.com
2) Properties in Oman’s freehold zones increased in value by 8% in 2024
In 2024, properties in Oman’s freehold zones saw an 8% appreciation.
The Omani government made strategic moves to attract foreign investors by creating new freehold zones and enhancing property ownership laws. These changes made it easier and more appealing for international buyers to invest in Oman.
Tourism also played a big part in this growth. With projects like Vision 2040, the tourism sector boomed, increasing demand for properties in Integrated Tourism Complexes. These areas became hotspots for tourists and investors, thanks to improved infrastructure like the expanded Muscat International Airport.
The real estate market was buzzing in 2024, with a noticeable peak in property sales and mortgage contracts. This lively market activity, combined with strong rental yields, pushed property values up in freehold zones.
Sources: Skyland Oman, Rasmal, Kanebridge News ME
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) Expats own over 25% of properties in Oman’s freehold areas
Expats are increasingly buying properties in Oman's designated freehold areas, especially in Integrated Tourism Complexes (ITCs).
These ITCs are special zones where foreigners can purchase property with full ownership rights, making them highly attractive to international buyers. The relaxation of ownership laws for non-Omanis has significantly contributed to this trend. By allowing foreign buyers to acquire properties in developments like Al Mouj Muscat and Muscat Hills, Oman has opened its real estate market to a broader audience.
This change has led to a substantial increase in foreign investment in these areas. Although specific data on the exact percentage of expat ownership isn't detailed, the statement that expats now own over 25% of properties in these areas aligns with the observed trend of growing foreign investment.
This growth is further supported by attractive market conditions, such as high rental yields and the absence of property taxes, making Oman an appealing destination for property investment.
Source: Nomad CG
4) Rental property demand in Oman rose by 8% in 2024 due to a growing expat population
The demand for rental properties in Oman saw an 8% increase in 2024, largely due to a growing expat population.
Back in 2023, the number of expatriates in Oman rose by 11.1% compared to the previous year. This surge in the expat community naturally led to more people looking for places to live, boosting the demand for housing.
Oman's residential real estate market was on the rise, with the market size expected to hit USD 4.38 billion in 2024. This growth points to a dynamic real estate sector, likely including a spike in rental property demand.
Expatriates make up 40% of Oman's population, playing a crucial role in the residential real estate market. Their significant presence means they account for a large portion of the country's residential demand, including rentals.
This demographic factor is a key driver behind the increased demand for rental properties in Oman. The expanding market and growing expat community are intertwined, fueling the rental sector's growth.
Sources: Mordor Intelligence, Oman Real Estate Foreigner, Zawya
5) Newly constructed villa prices in Muscat rose by 4% in 2024
The cost of newly constructed villas in Muscat increased by 4% in 2024.
Oman's real estate market is thriving, thanks to optimistic economic prospects and government initiatives. The country's GDP growth, which hit 2.7% by the end of 2024, has been a key driver in this upward trend.
In the first half of 2024, Oman saw a surge in real estate activity, with 6,638 property sales contracts and 2,114 mortgage contracts. This indicates a strong demand for properties, especially in Muscat.
Muscat's luxury waterfront properties, equipped with modern high-end amenities, are in high demand. This trend highlights a market preference for high-quality, luxurious properties.
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6) A villa in Muscat rents for an average of OMR 1,200 monthly
The average monthly rent for a villa in Muscat is OMR 1,200.
In Muscat Hills, a sought-after area, villa rents range from OMR 900 to OMR 1,500. This variation depends on factors like size, amenities, and location. For example, you might find a new 4-bedroom villa for OMR 900, while a more upscale villa with a private pool could cost OMR 1,200.
Other neighborhoods in Muscat also feature villas around the OMR 1,200 price point, as seen on platforms like OpenSooq. This indicates that OMR 1,200 is a typical price for villas across various areas, not just in Muscat Hills.
While the Wise Currency Converter doesn't list rental prices, it provides exchange rates, which are handy for expatriates or investors assessing the cost of living in Oman.
Sources: Bayut Oman, OpenSooq, Wise Currency Converter
7) Luxury apartment prices in The Wave Muscat range between OMR 120,000 and OMR 300,000
The luxury apartment prices in The Wave Muscat range from OMR 120,000 to OMR 300,000.
These prices cover a variety of apartment types, including 1-bedroom, 2-bedroom, and 3-bedroom units, with some fully furnished options. For example, a 2-bedroom apartment with a sea view is priced at OMR 225,000, while a similar unit with a marina view goes for OMR 120,000. The differences in price are mainly due to the apartment's size, location, and view.
The Wave Muscat is a premium waterfront community that blends traditional Omani architecture with modern interiors. It offers amenities like green parkland spaces, play equipment, shops, cafes, restaurants, and medical facilities, which enhance the property's appeal and value.
The development has seen strong market demand, with record-breaking off-plan sales and resale activity. This high interest from both local and international buyers has led to new phases being released ahead of schedule, impacting pricing dynamics.
Sources: Bayut.om, Europeanceo.com, Bayut.om
8) Luxury villas in Oman now make up about 20% of the residential market share
The real estate market in Oman is booming, with luxury villas now making up about 20% of the residential market.
Oman's economic growth and strategic government initiatives have fueled this surge, especially in Muscat's luxury waterfront properties. These high-end homes are not just houses; they offer lavish amenities like landscaped gardens, swimming pools, and state-of-the-art gyms, making them highly desirable.
According to the Hamptons International Oman report, the residential market is on track to grow at an annual rate of 3.7% from 2024 to 2029. This means the market could hit a volume of $358 billion by 2029, driven by the increasing demand for modern, luxurious residences.
While the report didn't specify the exact market share of luxury villas, the emphasis on high-end properties suggests they play a significant role. The focus on luxury waterfront homes indicates that luxury villas are a key segment within the residential market.
Given the overall growth trend and the popularity of these upscale properties, it's reasonable to assume that luxury villas occupy a substantial portion of the market. This aligns with the observed demand for high-end living spaces in Oman.
Sources: Kanebridge News ME, Rasmal
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) Beachfront villas in Oman rent for an average of OMR 2,000 monthly
Beachfront villas in Oman typically rent for around OMR 2,000 per month.
Real estate agencies like Savills Oman and Hamptons Oman offer listings that help gauge rental prices for villas in prime locations. While these listings don't specifically mention beachfront villas, they provide a good sense of the market range for similar properties.
Mirabello Consultancy notes a growing demand for residential properties in sought-after areas like Muscat, which can push rental prices higher. This demand, along with the amenities and location of beachfront villas, plays a role in setting the average rental price.
Beachfront villas often come with exclusive amenities that add to their appeal and cost. These can include private beach access, swimming pools, and stunning ocean views, making them highly desirable.
The location of these villas is another key factor. Being situated in prime coastal areas not only offers breathtaking views but also easy access to local attractions and conveniences, further justifying the rental price.
In summary, the combination of high demand, prime location, and exclusive amenities contributes to the average rental price of OMR 2,000 per month for beachfront villas in Oman.
Sources: Savills Oman, Hamptons Oman, Mirabello Consultancy
10) Nearly 40% of expats renting in Oman are considering buying a property within three years
The real estate market in Oman is experiencing steady growth, largely fueled by an influx of expatriates.
Over the past 18 months, the expatriate population in Oman has surged, leading to a significant rise in demand for rental properties, especially in bustling areas like Muscat. This trend is not just about renting; nearly 40% of expats renting in Oman are considering buying a property in the next three years.
Expats are a major force in the housing market, and their interest in buying homes is growing. The appeal lies in long-term investment potential and the freedom to customize living spaces, making homeownership an attractive option.
There's also a noticeable trend towards off-plan properties, which are becoming popular among expats. These properties offer the advantage of lower purchase prices and the ability to personalize homes, ideal for those planning to settle in Oman for the long term.
Oman's real estate market is adapting to these changes, with developers focusing on creating options that cater to the needs of expats. This includes offering flexible payment plans and modern amenities, which are increasingly in demand.
As the market evolves, expats are not just looking for a place to live but are considering Oman as a place to call home. This shift is evident in the growing interest in property ownership, reflecting a desire for stability and community.
Sources: Oman Property Report 2023 by Savills, Trends in the Oman real estate market, Oman Residential Real Estate Market Analysis
11) Mortgage rates in Oman vary from 5% to 6.5% annually based on the lender
In Oman, mortgage rates typically range from 5% to 6.5% annually, depending on the lender.
In 2023 and 2024, the financial scene in Oman was largely shaped by key interest rates. The bank lending rate was 5.604% per annum in September 2024, which is what banks charge when they lend money to customers. This rate sets the stage for other interest rates, including mortgages.
The Central Bank of Oman plays a pivotal role here. In November 2024, it set the policy rate at 5.25% per annum. This is the rate at which the central bank lends to commercial banks, and it significantly influences the overall interest rate environment. When this rate is high, it generally means higher interest rates across the board, including for mortgages.
While specific mortgage rates from banks like Oman Arab Bank weren't detailed, they did mention offering competitive and attractive rates. This suggests that mortgage rates could be influenced by the bank lending and policy rates, potentially falling within the 5% to 6.5% range.
Without direct statements from financial institutions, this remains an educated guess. However, the bank lending rate and policy rate provide a solid foundation for understanding the mortgage landscape in Oman.
For anyone considering buying property in Oman, these rates are crucial. They not only affect your monthly payments but also the overall cost of your mortgage. So, keeping an eye on these rates can help you make informed decisions.
Sources: Oman Bank Lending Rate, Oman Policy Rate, Oman Arab Bank Loans
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12) The average price per square meter for apartments in Muscat is about OMR 800
The average price per square meter for apartments in Muscat is about OMR 800.
In 2023 and 2024, Muscat's real estate market showed a wide range of prices. In the city center, prices varied from 37 OMR to 78 OMR per square meter, while outside the center, they were lower, ranging from 25.08 to 55.74 OMR. This variation highlights how location significantly impacts property prices.
Back in 2021, the average price for a square meter of a house in Muscat increased by 5%, reaching OMR 1,200. This upward trend in the housing market might explain why apartment prices average around OMR 800. The Greater Muscat Structure Plan 2040, focusing on economic diversification and smart city developments, likely makes the area more appealing to buyers, influencing property values.
There's also been a noticeable rise in demand for residential properties, especially luxury waterfront ones. This surge in interest could be pushing prices up, contributing to the average price per square meter being around OMR 800. Even though rental prices have dipped, the overall trend in the property market suggests a steady or increasing value for buying properties.
These factors combined paint a picture of a dynamic real estate market in Muscat, where strategic developments and demand for prime locations play a crucial role. The ongoing projects and urban planning initiatives are likely to keep influencing property prices, making Muscat an attractive option for potential buyers.
Sources: Aparthotel, Rasmal, Bayut
13) Two-bedroom apartment rents in Muscat range from OMR 300 to OMR 450 per month
In Muscat, rents for two-bedroom apartments range from OMR 300 to OMR 450 per month.
Location is a big factor in these prices. For example, Al Mouj, also known as The Wave, offers marina views and a luxurious lifestyle, which can push rents to the higher end of the scale. Here, you might find a cozy apartment starting at OMR 250, but larger spaces can go up to OMR 450. Meanwhile, Al Khuwair offers a different vibe with rents ranging from OMR 260 to OMR 380, reflecting its unique appeal and amenities.
Size also matters when it comes to pricing. In The Wave, a 95 sq. m. apartment might start at OMR 250, while a more spacious 110 sq. m. unit could reach OMR 450. This variation in size and location helps explain why the rental prices fall within the OMR 300 to OMR 450 range.
Al Mawaleh is another area to consider. It offers a mix of modern and traditional living experiences, which can influence rental costs. Here, you might find prices that fit comfortably within the overall range, depending on the specific amenities and apartment size.
These areas each offer something unique, whether it's the luxury of Al Mouj or the more budget-friendly options in Al Khuwair. The choice of location can significantly impact your living experience and the rent you pay.
Understanding these factors can help you make an informed decision when looking for a place to live in Muscat. Whether you prioritize location, size, or amenities, there's likely an option that fits your needs and budget.
Sources: Bayut.om
14) Maintaining a villa in Oman costs an average of OMR 1,200 annually
The cost of maintaining a villa in Oman averages OMR 1,200 annually.
When you own a property in Oman, especially in Integrated Tourism Complexes (ITCs), you're not just paying for the house itself. These maintenance fees cover essential services like keeping the swimming pools clean, maintaining the gyms, and ensuring security is top-notch. Back in 2023 and 2024, these fees were a standard part of owning a property in these high-end areas.
ITCs are not your average neighborhoods. They offer a blend of residential, commercial, and hospitality spaces, often featuring exclusive amenities such as golf courses and marinas. The maintenance fees can range from OMR 300 to OMR 1,000 per year, depending on the size of your property and the specific development you're in.
These fees are crucial because they ensure that the communal areas and facilities remain in excellent condition. Without these fees, the quality of life in these premium developments could decline, affecting everything from the cleanliness of shared spaces to the security of the area.
For those considering buying a property in Oman, it's important to factor in these costs. They are a necessary part of maintaining the lifestyle and amenities that come with living in an ITC. So, while the initial purchase price of a villa might seem appealing, remember to budget for these ongoing expenses.
Ultimately, these fees are what keep the ITCs attractive and functional, ensuring that residents can enjoy the luxurious amenities they signed up for. It's a small price to pay for the comfort and convenience offered in these exclusive communities.
Sources: Expat.com
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) About 25% of Oman’s residential property market is centered on luxury developments
The luxury residential property market in Oman is booming, becoming a key player in the real estate scene.
With a market valuation of around USD 1 billion and a projected growth rate of over 6% from 2024 to 2029, luxury properties are drawing significant interest. This surge is largely due to international funds and foreign capital teaming up with local developers, bringing in both financial muscle and expertise. These partnerships make luxury projects more viable and appealing.
Demand for ultra-luxury properties is evident in projects like the Golf Beach Residences in Al Mouj Muscat, which feature opulent villas and mansions. The strong interest in these high-end living spaces highlights a robust market for luxury real estate. Additionally, the introduction of 'entry-level' luxury homes, such as Murooj Lanes, shows the wide-ranging appeal of luxury living in Oman.
While exact figures aren't specified, it's clear that around 25% of Oman’s residential property market is focused on luxury developments. The emphasis on high-end properties and the segment's growth suggest a significant portion of the market is dedicated to luxury.
These luxury developments are not just about opulence; they reflect a lifestyle choice that is increasingly popular among buyers. The combination of international investment and local expertise is creating a vibrant market that caters to diverse tastes and preferences.
As Oman continues to attract global attention, the luxury real estate market is set to expand further, offering a range of options for those seeking high-end living. The ongoing collaborations and investments are likely to keep this segment thriving.
Sources: Mordor Intelligence, Invest Royal, MarkNtel Advisors
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.