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
Oman's real estate market in 2026 is experiencing strong momentum, with residential property prices rising nearly 19% year-on-year and apartments in prime areas like Al Mouj Muscat seeing even sharper gains.
This guide covers current housing prices in Oman, ownership rules for foreigners, neighborhood trends, and realistic projections for the year ahead.
We constantly update this blog post to reflect the latest market conditions and regulatory changes affecting buyers in the Sultanate.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Oman.
How's the real estate market going in Oman in 2026?
What's the average days-on-market in Oman in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Oman is around 90 days for typical resales, though this figure varies significantly between prime Integrated Tourism Complexes and standard city districts.
Most listings in Oman fall within a realistic range of 45 to 150 days on market, with turnkey apartments in expatriate-friendly areas like Al Mouj Muscat and Muscat Hills clearing in 45 to 70 days, while larger villas or properties in less liquid neighborhoods can sit for 100 to 150 days.
Compared to one or two years ago, days-on-market in Oman have shortened noticeably because the market exited a two-year correction phase in 2024 and strong price growth through 2025 signals that well-priced listings are now being absorbed faster than before.
Are properties selling above or below asking in Oman in 2026?
As of early 2026, most residential properties in Oman sell below their asking price, with the estimated median sale-to-list ratio falling between 94% and 97%, meaning buyers typically secure discounts of 3% to 6% from the initial listing price.
The majority of properties in Oman sell at or below asking, and above-asking sales remain uncommon outside the most desirable ITC developments, so we estimate that fewer than 10% of transactions close above the original asking price.
The properties most likely to see bidding wars and near-asking or above-asking sales in Oman are turnkey apartments and villas in prime Integrated Tourism Complexes like Al Mouj Muscat, Muscat Bay, and Muscat Hills, particularly units with marina views, beach access, or recent renovations that appeal to expatriate buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Oman.
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.
What kinds of residential properties can I realistically buy in Oman?
What property types dominate in Oman right now?
The residential market in Oman is split between Integrated Tourism Complexes (ITCs) offering apartments, townhouses, and villas to foreign buyers, and standard city districts where standalone villas and apartment blocks serve mainly Omani and GCC nationals.
Apartments represent the largest share of the market available to foreign buyers in Oman, particularly within ITCs like Al Mouj Muscat, Muscat Hills, and Jebel Sifah, where one- to three-bedroom units dominate the active listings.
Apartments became so prevalent in Oman's foreigner-accessible market because the ITC legal framework encourages master-planned developments with higher density, and expatriates often prefer low-maintenance, amenity-rich living over standalone villas that require more upkeep.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Oman right now?
New-build properties represent roughly 50% to 55% of residential listings available to foreign buyers in Oman, concentrated almost entirely within Integrated Tourism Complexes where developers continue launching phases of apartments, townhouses, and villas.
As of early 2026, the highest concentration of new-build developments in Oman can be found in Al Mouj Muscat (ongoing expansion phases), Sultan Haitham City (the flagship smart-city project west of Muscat), and the westward growth corridor including Seeb and Al Hail, along with coastal resort communities like Muscat Bay and Jebel Sifah.
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Which neighborhoods are improving fastest in Oman in 2026?
Which areas in Oman are gentrifying in 2026?
As of early 2026, the neighborhoods showing the clearest signs of gentrification in Oman are Mutrah (Muttrah) and the edges of Old Muscat, where heritage tourism, waterfront improvements, and boutique hospitality projects are gradually lifting property values.
The visible changes indicating gentrification in these areas include the opening of boutique cafes and artisan shops along Mutrah Corniche, renovation of traditional courtyard houses into short-term rental units, and an influx of creative businesses catering to tourists and younger professionals.
Price appreciation in these gentrifying Oman neighborhoods has been moderate over the past two to three years, estimated at 8% to 15% cumulative growth, which is slower than the prime ITC markets but faster than stagnant peripheral districts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Oman.
Where are infrastructure projects boosting demand in Oman in 2026?
As of early 2026, the top areas in Oman where major infrastructure projects are boosting housing demand include Sultan Haitham City (the flagship smart-city development), the Seeb-Al Hail-Al Khoudh westward growth corridor, and the port cities of Duqm and Sohar where industrial zones are attracting workers.
The specific infrastructure projects driving demand in these areas include the Sultan Haitham City urban development (a full smart-city with schools, hospitals, and transit links), highway upgrades like the Batinah Expressway completion, Muscat International Airport expansion, and the Duqm Special Economic Zone which has attracted over $52 billion in investment commitments.
The estimated timeline for completion of these major projects varies, with Sultan Haitham City delivering phases through 2026 to 2030, highway projects completing within 2 to 4 years, and the Duqm economic zone continuing staged development through 2040.
The typical price impact on nearby properties in Oman is a 5% to 15% premium once infrastructure projects are announced, with an additional 10% to 20% appreciation upon completion, though the exact effect depends on the project scale and how directly it improves accessibility to the neighborhood.
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.
What do locals and insiders say the market feels like in Oman?
Do people think homes are overpriced in Oman in 2026?
As of early 2026, sentiment among locals and market insiders in Oman is mixed, with many feeling that prime ITC properties are "expensive but justified" due to limited supply and strong expatriate demand, while properties outside these zones are often seen as "overpriced for what you get" in terms of finish quality and amenities.
When arguing that homes in Oman are overpriced, locals typically cite the price-per-square-meter gap between ITC developments and comparable non-ITC stock, the 3% foreign buyer registration fee that adds to transaction costs, and the fact that rental yields have compressed to 5% to 7% in prime areas as prices rose faster than rents.
Those who believe prices in Oman are fair point to the genuine supply shortage (only about 5,500 new units expected annually against much higher demand), the zero-property-tax environment, and the residency benefits attached to ITC ownership that add intangible value for foreign buyers.
The price-to-income ratio in Oman is more favorable than in Dubai or Abu Dhabi, with average property prices in Muscat ranging from $2,100 to $4,400 per square meter compared to significantly higher levels in the UAE, making Oman more accessible for middle-income expatriates and first-time investors in the region.
What are common buyer mistakes people regret in Oman right now?
The most frequently cited buyer mistake in Oman is attempting to purchase property outside an approved Integrated Tourism Complex, often because an agent assures the buyer "it will be fine," when in fact the sale cannot be legally registered in a foreigner's name and the buyer risks losing their entire investment.
The second most common buyer mistake in Oman is under-budgeting for transaction friction, including the 3% registration fee for foreigners, legal review costs, developer No Objection Certificates (NOCs) in master-planned communities, and ongoing service charges that can range from OMR 500 to OMR 2,000 per year depending on the development.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Oman.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Oman.
Get the full checklist for your due diligence in Oman
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How easy is it for foreigners to buy in Oman in 2026?
Do foreigners face extra challenges in Oman right now?
The overall difficulty level for foreigners buying property in Oman is moderate compared to local buyers, mainly because foreign ownership is restricted to designated Integrated Tourism Complexes, which limits your choices to about 5 to 7 major developments in Muscat and a handful of coastal resort communities.
The specific legal restrictions for foreign buyers in Oman include the requirement to purchase only within ITCs or Special Economic Zones, a 3% property transfer fee (versus 1% for Omani nationals as of January 2025), mandatory Ministry of Housing registration, and a four-year construction deadline if you buy undeveloped land within an ITC.
Practical challenges foreigners commonly encounter in Oman include the need to obtain a valid Power of Attorney if purchasing remotely, limited English-language documentation from some government offices, the requirement to have source-of-funds verification for bank compliance, and the absence of a straightforward path to citizenship even with property ownership.
We will tell you more in our blog article about foreigner property ownership in Oman.
Do banks lend to foreigners in Oman in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Oman, but most banks require residency status, meaning non-resident foreigners typically need to either pay cash, use developer payment plans, or secure financing from their home country.
Foreign buyers with Oman residency can expect loan-to-value ratios of 60% to 80% (meaning down payments of 20% to 40%), interest rates ranging from 5% to 7.5% annually depending on the bank and borrower profile, and loan terms of 15 to 25 years with the property serving as collateral.
Banks in Oman typically require foreign mortgage applicants to provide a valid residency permit, salary certificates from a locally registered employer, bank statements showing at least 12 months of salary transfers to an Omani account, proof of property eligibility within an approved ITC, and a minimum monthly income of around OMR 1,500 at major institutions like Bank Muscat or Oman Arab Bank.
You can also read our latest update about mortgage and interest rates in Oman.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Oman versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How risky is buying in Oman compared to other nearby markets?
Is Oman more volatile than nearby places in 2026?
As of early 2026, Oman's property market is less volatile than Dubai but more dynamic than Saudi Arabia, with NCSI reporting an 18.7% year-on-year residential price increase in Q3 2025 compared to Dubai's roughly 10% growth and Saudi Arabia's low single-digit changes in the same period.
Over the past decade, Oman experienced moderate price swings including a notable correction during 2023 to 2024 when prices declined before rebounding sharply in 2025, while Dubai saw more dramatic boom-bust cycles driven by speculative capital flows and Saudi Arabia remained relatively flat with gradual, policy-driven appreciation.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Oman.
Is Oman resilient during downturns historically?
Oman's property market has shown moderate resilience during past economic downturns, with values typically declining 10% to 20% during stress periods like the 2015 to 2017 oil price crash, which is less severe than Dubai's historical corrections but more noticeable than markets with stronger domestic demand bases.
During the most recent major downturn (2023 to early 2024), property prices in Oman fell by roughly 5% to 10% before recovering strongly through 2025, with the full recovery taking approximately 18 to 24 months as oil prices stabilized and Vision 2040 investments gained momentum.
The property types and neighborhoods in Oman that have historically held value best during downturns are prime ITC developments like Al Mouj Muscat, waterfront villas with marina access, and well-located apartments serving the expatriate professional community, because these benefit from sustained rental demand even when buyer activity slows.
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How strong is rental demand behind the scenes in Oman in 2026?
Is long-term rental demand growing in Oman in 2026?
As of early 2026, long-term rental demand in Oman is steady to growing, supported by a large expatriate population (approximately 44% of total residents) and continued economic diversification that brings skilled workers to key employment centers in Muscat, Sohar, and Duqm.
The tenant demographics driving long-term rental demand in Oman are primarily expatriate professionals working in oil and gas, construction, healthcare, education, and the growing tourism sector, along with families seeking housing near international schools and business districts.
The neighborhoods in Oman with the strongest long-term rental demand right now are Al Mouj Muscat, Al Khuwair, Qurum, and the Seeb area near Muscat International Airport, because these locations combine proximity to employment centers, international schools, and lifestyle amenities that expatriate tenants prioritize.
You might want to check our latest analysis about rental yields in Oman.
Is short-term rental demand growing in Oman in 2026?
Oman does not have heavy short-term rental restrictions like some European cities, though operators in ITCs may face community rules requiring minimum lease terms of 11 months for certain residency benefits, and professional STR operations should register with local authorities and obtain appropriate tourism licenses.
As of early 2026, short-term rental demand in Oman is growing moderately, driven by a 19% increase in hotel revenues through October 2025 according to NCSI data, which suggests that tourism activity is feeding demand for alternative accommodation options including Airbnb and holiday lets.
The current estimated average occupancy rate for short-term rentals in Muscat is around 45% to 50% annually, according to AirDNA data, with nightly rates averaging $60 to $70, reflecting a seasonal tourism market with peaks during the cooler winter months and the Khareef season in Salalah.
The guest demographics driving short-term rental demand in Oman are primarily leisure tourists from GCC countries (especially during summer when they escape the extreme heat elsewhere), European visitors during winter, adventure travelers exploring Oman's mountains and wadis, and business travelers attending conferences or visiting the Duqm and Sohar industrial zones.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Oman.
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 are the realistic short-term and long-term projections for Oman in 2026?
What's the 12-month outlook for demand in Oman in 2026?
As of early 2026, the 12-month demand outlook for residential property in Oman is stable to positive, with strong price momentum carrying over from 2025 and continued expatriate hiring supporting rental demand in Muscat's prime areas.
The key economic and political factors most likely to influence demand in Oman over the next 12 months are oil prices (which affect government spending and confidence), the pace of Vision 2040 infrastructure projects, expatriate workforce growth, and global interest rate trends that feed into mortgage costs.
The forecasted price movement for Oman over the next 12 months is moderate growth of 3% to 7%, with prime ITC properties likely at the higher end of that range and secondary stock remaining flat or seeing marginal gains, as the market consolidates after the sharp 2025 rebound.
By the way, we also have an update regarding price forecasts in Oman.
What's the 3 to 5 year outlook for housing in Oman in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Oman is cautiously positive, with expectations of moderate annual growth of 3% to 5% driven by continued supply shortages, Vision 2040 investments, and growing foreign investor interest in the affordable-luxury ITC segment.
The major development projects expected to shape Oman over the next 3 to 5 years include Sultan Haitham City (delivering thousands of homes in a smart-city format), New City Salalah (12,000 housing units in Dhofar), Al Khuwair Downtown (a $2.6 billion waterfront project with 4,000 homes), and continued expansion of Al Mouj Muscat and coastal resort ITCs.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Oman is oil price volatility, because a sustained drop in oil prices would reduce government revenues, slow infrastructure spending, and potentially trigger expatriate job losses that would dampen both buyer and renter demand.
Are demographics or other trends pushing prices up in Oman in 2026?
As of early 2026, demographic trends are having a meaningful upward impact on housing prices in Oman, with population projected to grow from 4.6 million to over 5.4 million by 2035 and urbanization pushing more than 85% of residents into cities like Muscat and Salalah.
The specific demographic shifts affecting prices in Oman include continued expatriate workforce expansion (foreigners make up about 44% of residents), a young median age below 32 years creating first-time buyer demand, and Ministry data showing 500,000 active housing requests with 125,000 families lacking suitable dwellings.
Non-demographic trends also pushing prices in Oman include the Golden Residency program (relaunched in August 2025 with a lower OMR 200,000 threshold attracting foreign investors), growing tourism (targeting 11.7 million visitors by 2040), and Vision 2040 economic diversification bringing new employment to logistics, manufacturing, and tech sectors.
These demographic and trend-driven price pressures in Oman are expected to continue for at least 5 to 10 years, as long as Vision 2040 implementation stays on track and oil revenues remain sufficient to fund infrastructure investments, though the intensity may moderate as new supply from Sultan Haitham City and other projects comes online.
What scenario would cause a downturn in Oman in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Oman is a sustained oil price collapse below $60 per barrel, which would strain government finances, slow infrastructure spending, and lead to expatriate layoffs that reduce both buyer and renter demand.
The early warning signs that would indicate a downturn is beginning in Oman include rising vacancy rates in non-prime apartment buildings, a spike in days-on-market beyond 120 days across segments, declining expatriate population numbers in NCSI reports, and a slowdown in CBO-reported mortgage lending growth.
A potential downturn in Oman could realistically see prices decline by 10% to 20% from peak levels based on historical patterns, with secondary stock and non-ITC areas experiencing sharper corrections while prime ITC developments like Al Mouj Muscat would likely hold up better due to their limited supply and sustained expatriate demand.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Oman, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Oman National Centre for Statistics & Information (NCSI) - Real Estate Price Index | It's Oman's official statistics agency, making it the closest thing to "ground truth" for national price indicators. | We used it to anchor the market in official metrics like the 18.7% residential price increase in Q3 2025. We cross-checked any media mentions of price movements against these official NCSI releases. |
| IMF - Oman 2025 Article IV Consultation | The IMF is a top-tier international institution with standardized country surveillance and macro risk analysis. | We used it to anchor the 2026 outlook scenarios including oil sensitivity, reform progress, and growth drivers. We framed realistic downturn triggers based on their analysis. |
| Savills - Oman Property Market Q3 2025 | Savills is a major global real estate consultancy with formal research notes and consistent reporting methodology. | We used it for on-the-ground market sentiment, rent trends, and activity levels in Muscat's prime areas. We treated it as secondary to NCSI and only used it where it aligned with official direction. |
| Royal Decree 12/2006 - ITC Property Ownership Law | This is the primary legal text enabling non-Omanis to own property in Integrated Tourism Complexes. | We used it to state confidently where foreigners can legally buy freehold-style units. We avoided relying on hearsay about foreign ownership rules by referencing this decree directly. |
| Central Bank of Oman - Monthly Statistical Bulletin | It's the central bank's official statistical publication for credit conditions and lending aggregates. | We used it to triangulate whether credit is expanding or tightening, which affects buyers and prices. We framed what financing conditions might feel like for borrowers in 2026. |
| Al Tamimi & Company - Foreign Ownership Legal Explainer | It's a leading regional law firm that ties explanations back to actual decrees and regulations. | We used it to translate legal texts into practical buyer implications like paperwork requirements and ITC scope. We only cited it where it clearly aligned with decree-based rules. |
| Ministry of Housing and Urban Planning - Sultan Haitham City | It's the official ministry page for a flagship urban project that can materially shift housing supply and demand. | We used it to identify where new infrastructure-led development could change neighborhood momentum. We kept infrastructure boost claims concrete and location-specific. |
| AirDNA - Muscat Short-Term Rental Data | AirDNA is a widely used STR analytics provider with a transparent, data-driven approach. | We used it to estimate STR occupancy and nightly-rate ranges in Muscat for early 2026. We treated it as a private-sector triangulation against NCSI tourism and hotel growth. |
| NCSI - Tourism/Hotel Performance Release (Oct 2025) | It's official NCSI reporting on hotel guests and revenues, which is a strong demand proxy for short-term stays. | We used it to triangulate short-term rental demand since tourism activity feeds Airbnb and holiday lets. We used the 19.4% revenue growth rate to set a realistic STR outlook. |
| World Bank - Oman Macro Poverty Outlook | The World Bank is an international authority that summarizes macro conditions and medium-term risks. | We used it to triangulate the baseline macro outlook for 2025-2026. We stress-tested the housing outlook against labor policy and oil volatility scenarios. |
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