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What is happening in Oman’s real estate market? Are prices on the rise or decline? Is Muscat still a prime location for foreign investors? How are Oman's government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the Sultanate, from Salalah to Sohar and beyond. Perhaps you’re curious about the same things.
We know this because we stay closely connected with local experts and individuals like you, exploring the Omani real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Long-term residency visas will draw more foreign investors to Oman’s market
The introduction of long-term residency visas in Oman is a major draw for foreign investors.
By the end of 2023, over 3,400 investors from 60 countries had secured these visas, highlighting a growing interest in the Omani market. This surge is particularly evident in the real estate sector, where the total trading value hit 1.40 billion Omani rials in the first half of 2024. While the number of property transactions dipped slightly, the value of mortgage contracts rose, showing that foreign investors are ready to spend more on Omani properties.
Oman's appeal isn't just about real estate. The Ministry of Trade, Industry and Investment Promotion noted that by the third quarter of 2023, foreign direct investments exceeded OMR25 billion. This indicates that the long-term residency visa program is not only sparking interest but also attracting substantial financial commitments.
These visas offer a sense of stability and security, making Oman an attractive option for those looking to invest in a stable and growing market. The country's strategic location and business-friendly environment further enhance its appeal, providing investors with a gateway to the Middle East and beyond.
For those considering a move, Oman offers a unique blend of modernity and tradition, with a high quality of life and a welcoming community. The long-term residency visa is a key factor in making this transition smoother, offering investors the chance to truly become part of the Omani landscape.
Sources: Economy Middle East, Arab News, Times of Oman
2) Interior regions like Nizwa will see slower price growth than coastal cities
In Oman, property prices in interior regions like Nizwa have grown more slowly compared to bustling coastal cities.
Take Muscat, for instance. This coastal city has seen a massive urban expansion of 650% between 1970 and 2003, while Nizwa's growth was much more modest. The reason? Coastal areas are buzzing with higher urbanization rates. In 2023, urban population growth in Oman was 7.2651%, with most of this happening in coastal cities like Muscat. More people moving there means more demand for properties, which naturally pushes prices up.
Investment and development are also heavily skewed towards the coast. The Ministry of Heritage and Tourism is all about building tourism infrastructure in these regions, like hotels and resorts. This attracts more visitors, which in turn boosts property demand. Tourism is a big deal here. In 2023, over 4 million foreign tourists visited Oman, with many heading to coastal destinations. This influx of tourists increases the demand for properties, leading to higher prices in these areas.
Infrastructure development plans have prioritized coastal areas, with studies focusing on expanding Muscat's built-up area along the coast. This focus on coastal development is likely to continue, further driving up property prices. Real estate market analyses predict stronger demand in coastal cities due to the growing tourism sector, which is expected to keep property prices high. Surveys also show a preference for coastal properties, as many people enjoy the amenities and attractions like beaches and resorts.
Government policies have also been geared towards coastal development, with initiatives aimed at enhancing the tourist experience in these regions. This focus can lead to increased investment and higher property prices.
Sources: WIT Press, Tripmore, Trading Economics
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.
3) Salalah’s real estate market will experience steady price growth due to tourism
The real estate market in Salalah is set for a steady price increase, mainly due to booming tourism.
In 2024, Salalah welcomed over 1 million tourists between June and August, marking an 8.7% increase from the previous year. This surge highlights Salalah's growing appeal as a tourist hotspot, a trend that's expected to continue. The government has been actively promoting Salalah, especially during the Khareef season, which has led to a significant rise in tourist numbers.
Efforts to make Salalah more attractive include expanding local retail and entertainment options. For instance, the main children’s amusement park has doubled in size, and over 200 new international cafes and restaurants have opened. These developments are making Salalah a more enticing destination for visitors.
Hotel occupancy rates in Salalah have also seen a notable increase, with a 9% growth in 2023 and a 30.3% rise in the number of hotel guests compared to 2022. This high demand for accommodation during peak months suggests a strong potential for increased property prices.
Moreover, the development of new tourist attractions and infrastructure, such as the expansion of Salalah Airport and the construction of Integrated Tourism Complexes, further enhances the region's appeal. These improvements are expected to draw even more visitors, boosting the local economy and driving up real estate values.
Sources: Travel and Tour World, AGBI, Zawya, JLL
4) Duqm rents will rise as it evolves into a business hub
Duqm is rapidly transforming into a bustling business hub, and rental prices are on the rise as a result.
One major driver of this trend is the significant investment in infrastructure. The development of areas like the Duqm Heights District and the Boulevard District between 2023 and 2024 has introduced essential features such as district cooling plants and a multimodal transportation system. These enhancements make Duqm increasingly appealing to both businesses and residents.
The Port of Duqm is another key factor, with its modern facilities and strategic location attracting substantial investment. The opening of the Duqm Refinery at the end of 2023 has further boosted the area's allure, spurring growth in related industries. This influx of businesses naturally increases the demand for housing, pushing rental prices upward.
Government initiatives like the Vision 2040 development strategy and the National Aviation Strategy 2030 are also crucial. These plans aim to promote Duqm as a business hub by enhancing tourism, modernizing agriculture, and fostering technology, all of which contribute to economic growth and a higher demand for residential properties.
As job opportunities expand, more people are moving to Duqm, further driving up housing demand. The expansion of port and logistics facilities, along with new industrial projects, has created numerous job opportunities, attracting more residents. This population growth is a significant factor in the rising rental values.
With all these developments, Duqm is becoming a magnet for businesses and individuals alike, making it a prime location for property investment. The area's transformation is undeniable, and the upward trend in rental prices is expected to continue as Duqm solidifies its status as a business hub.
Sources: Arab Urban Development Institute, Gulf Research Center, Oxford Business Group
5) Salalah's rents will rise slightly due to seasonal tourism demand
Salalah is seeing a slight rise in rents due to seasonal tourism.
Every year, during the Khareef season from June to September, Salalah becomes a tourist magnet. In 2024, the city welcomed over 1 million visitors, which is an 8.7% increase from the previous year. This surge in tourists has historically led to higher short-term rental prices, especially since the season now stretches over three months.
With hotels often fully booked, tourists are turning to alternative accommodations, driving up demand for rental properties. Local real estate agencies have noticed this trend, as more tourists are seeking places to stay during this busy period. The Ministry of Heritage and Tourism in Oman has been actively promoting Salalah, drawing visitors from the GCC region and beyond.
Salalah's unique charm during the monsoon season is a big draw, and this increased attention has contributed to the rising demand for rental properties. The city's appeal is not just limited to regional tourists; it has caught the eye of international travelers as well. This growing interest is reflected in the rental market, where prices are nudging upwards.
For those considering buying property in Salalah, it's worth noting that the rental market is influenced by these seasonal trends. The Khareef season, with its lush landscapes and cooler temperatures, is a major attraction, and this is reflected in the rental dynamics. As tourism continues to grow, the demand for rental properties is expected to remain strong.
Sources: Travel and Tour World, Oman.org.au, Skift
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6) Muscat will see increased foreign interest in luxury properties due to relaxed ownership laws
In 2023 and 2024, foreign interest in Muscat's luxury real estate market surged.
According to the 'Oman – H1 2024 Market Overview' by Hamptons International Oman, there was a noticeable uptick in inquiries, especially for high-end waterfront properties. This trend is not just a blip; it's part of a larger movement where Muscat is becoming a hotspot for luxury real estate.
Experts from Sands Of Wealth predict that property prices in Muscat will rise in 2025, thanks to economic growth and increased foreign investment. This is largely due to the Omani government's decision to relax ownership laws, making it easier for foreigners to buy property.
The Omani government has been proactive in attracting foreign investment by easing property ownership regulations for expatriates. This move has opened the doors for more international buyers, who are now eyeing Muscat's luxury market with keen interest.
These relaxed laws have not only made it simpler for foreigners to invest but have also boosted interest in both residential and commercial properties in Muscat. The city is now on the radar for many international investors looking for lucrative opportunities.
With these changes, Muscat is positioning itself as a prime destination for luxury real estate, and the demand from foreign nationals is expected to continue growing. The combination of economic growth and favorable laws is creating a perfect storm for a thriving real estate market.
Sources: Hamptons International Oman, Sands Of Wealth, Sands Of Wealth
7) New foreign ownership laws will simplify residential property investments for expatriates
Oman's new foreign ownership laws are making it easier for expatriates to buy homes.
In the first half of 2024, expatriates snapped up properties worth 545.6 million rials, spread across 32,596 contracts. This surge in purchases shows how attractive the market has become for foreign buyers. The real estate sector in Oman is buzzing, with a total trading value of 1.40 billion Omani rials during the same period. This is a slight uptick from last year, hinting at a promising trend for the future.
Looking ahead, the residential real estate market is expected to grow significantly by 2029. This growth is largely due to the new laws that have made the market more appealing to foreign investors. The government has been instrumental in this shift, with a key directive from the Ministry of Housing and Urban Planning in March 2022. This directive allows foreign investors to purchase real estate in Oman, albeit with some exceptions.
These changes have opened up new opportunities for expatriates eager to invest in Oman's property market. The government's proactive approach is reshaping the landscape, making it more accessible and attractive for foreign buyers. The buzz around these changes is palpable, and the numbers back it up.
With the market projected to grow, now might be the perfect time for expatriates to consider investing in Oman's real estate. The combination of favorable laws and a growing market makes it an enticing prospect. The government's efforts to make the market more accessible are clearly paying off, as seen in the increased interest from foreign investors.
Sources: Arab News, Zawya, Oxford Business Group
8) Muscat will see higher rental yields as demand for rental properties rises
Muscat is buzzing with growth, and rental properties are in high demand.
With the city attracting more expatriates, the population is swelling, and everyone needs a place to stay. This surge in people means more competition for apartments, naturally pushing rental prices up. For property owners, this is a golden opportunity as rental yields are likely to rise.
Muscat's job market is on the upswing, especially in tourism, hospitality, and manufacturing. As these sectors expand, more job seekers are flocking to the city, further boosting the need for rental homes. This influx allows landlords to charge more, enhancing their rental returns.
The Omani government's Vision 2040 is a game-changer, aiming to diversify the economy beyond oil. By focusing on tourism and infrastructure, Muscat is becoming a hotspot for residents and investors alike. This newfound appeal is driving up demand for rentals, which can lead to higher yields.
In popular areas like Al Mouj and Qurum, new rental properties are scarce. This limited supply, coupled with high demand, means renters are competing fiercely, giving landlords the upper hand to increase prices and boost their profits.
Sources: Mordor Intelligence, Qureos, Savills, Go-Globe
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.
9) Expatriate influx will diversify housing needs across various regions
The number of expatriates in Oman has surged, with an 11.1% increase in 2023, bringing the total to over 2.2 million.
This influx is reshaping the housing market, especially in Muscat, where expatriates now make up 61.1% of the population. The demand for diverse housing options is growing, with many looking for homes that suit their lifestyle and needs.
Government policies are a big part of this change. The Foreign Capital Investment Law, which allows 100% foreign ownership of investment projects, has opened doors for more foreign investment in real estate. This has led to new residential projects aimed at expatriates, including mixed-use developments that offer a variety of living options.
Real estate market reports are buzzing about these changes. There's a noticeable increase in the construction of mixed-use developments, and international schools and amenities are expanding. These developments are designed to meet the specific needs of expatriates, offering more than just a place to live.
In Muscat, for example, the housing market is evolving to include more options that cater to the diverse needs of its residents. This includes everything from luxury apartments to family-friendly communities, reflecting the growing diversity in housing demands.
As expatriates continue to arrive, the housing landscape in Oman is becoming more varied, with new projects popping up in different regions. This trend is not just about numbers; it's about creating communities that offer a sense of belonging and meet the unique lifestyle preferences of expatriates.
Sources: Muscat Daily, Tamimi, Times of Oman
10) Green building regulations will influence property development choices
In Oman, green building regulations are reshaping property development.
The government is actively promoting sustainability through initiatives like the National Renewable Energy Initiative, which supports solar panel installations in homes. This program aims to cover 500 residential buildings in Muscat, highlighting a strong push for eco-friendly living. The focus on renewable energy is not just about reducing carbon footprints; it's also about cutting down on electricity bills, making it a win-win for homeowners.
Oman's new Building Code, crafted with the International Code Council, is a game-changer. It emphasizes safety, resilience, and sustainability, incorporating advanced systems that align with global standards. This means buildings are not only safer but also more energy-efficient, which is a big draw for investors looking for properties that meet international benchmarks.
There's a noticeable trend towards sustainable building certifications like LEED. The Mall of Oman in Muscat, for example, achieved Platinum LEED certification, a testament to its high sustainability standards. Such certifications boost property value and appeal to buyers who prioritize eco-friendly features, a trend that's gaining momentum as seen in events like the Green Build Oman 2024 conference.
These developments are not just about meeting regulations; they're about tapping into a growing market demand. Buyers are increasingly looking for properties that offer both environmental benefits and cost savings. The shift towards green building practices is making Oman a more attractive destination for both local and international investors.
Sources: Lexis Middle East, Kennedy Law, Technium Science
11) Interest in eco-friendly communities will grow as sustainable living becomes more popular
There's a growing trend towards sustainable living, sparking interest in eco-friendly communities.
In Oman, this shift is evident as the country embraces green building certifications, with more projects earning LEED status. This move highlights a clear commitment to sustainable construction. Companies like Direct Services LLC are at the forefront, using recycled steel and low-impact concrete, setting a standard for others to follow.
The Omani government is also playing a crucial role by offering incentives for sustainable development. These include ambitious recycling targets and efforts to reduce greenhouse gas emissions, which are encouraging the growth of eco-friendly communities. Such initiatives are making sustainable living more attractive to potential homeowners.
Real estate developers are increasingly focusing on sustainable practices. Direct Services LLC, for instance, integrates eco-friendly methods from planning to execution, responding to the growing consumer demand for sustainable housing. This approach not only reduces environmental impact but also aligns with what buyers are looking for.
Media coverage and social media trends are amplifying the appeal of sustainable lifestyles, making eco-friendly communities even more desirable. This heightened awareness is driving more people to consider these communities as viable living options.
Sources: Emerald Insight, Direct Services LLC, Ministry of Energy and Minerals Annual Report 2023
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12) Home office-equipped properties will become more popular as remote work trends grow
Remote work is reshaping how we live and work, making home office spaces more essential than ever.
In Oman, there's a noticeable trend: the demand for home office furniture is on the rise. This isn't just about buying a desk; it's about creating a dedicated workspace at home. As more people embrace remote work, they're investing in their home environments to boost productivity and comfort.
The Gulf Region, including Oman, is seeing a surge in remote work. By 2025, over half of the workforce is expected to work remotely. This shift is not just a temporary change; it's becoming a new norm. People are realizing that a well-equipped home office can significantly enhance their work experience.
Surveys reveal that most remote workers in Oman prefer to continue working from home. This preference is driving the demand for properties with home office spaces. Buyers are increasingly looking for homes that can accommodate their professional needs, making a home office a must-have feature.
For those considering buying property in Oman, it's worth noting that homes with dedicated office spaces are gaining popularity. This trend is fueled by the growing number of remote workers who need a functional and comfortable workspace.
As remote work continues to thrive, properties with home offices are becoming more attractive to potential buyers. This shift in priorities is shaping the real estate market, with more emphasis on homes that support a balanced work-life environment.
Sources: Statista, Matsh, Oman Observer
13) Expat demand for rental properties in Oman will rise as the country becomes more expatriate-friendly
Oman is becoming a hotspot for expatriates, leading to a surge in demand for rental properties.
Thanks to favorable visa policies, moving to Oman is now easier for expatriates. The country has seen a significant increase in its expatriate population, especially from 2022 to 2023. This influx is a clear sign that more foreigners are choosing to call Oman home.
The Omani government is actively working to attract foreign investment and talent. Through initiatives like the Vision 2040 plan, they aim to diversify the economy and boost investor confidence. This has led to a growing interest in real estate, particularly in urban areas. The easing of property ownership regulations for expatriates has also played a role in this increased interest.
Long-term residency permits are another draw for expatriates. These permits allow them to stay in Oman for longer periods, making renting properties more appealing. The country is also expanding its international schools and healthcare facilities, which enhances the living conditions for expatriates and makes Oman an even more attractive destination.
Oman's efforts to become more expatriate-friendly are paying off. The demand for rental properties is rising as more expatriates look to settle in the country. This trend is expected to continue as Oman continues to improve its infrastructure and living conditions.
With these developments, Oman is positioning itself as a prime location for expatriates seeking a new home. The combination of favorable policies, improved living conditions, and economic opportunities is driving the increased demand for rental properties.
Sources: Zawya, CEIC Data, Connsect
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.