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Where are the best places to invest in Oman right now? Is Muscat still the top pick, or are cities like Salalah, Sohar, and Duqm gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Oman and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Salalah’s Al Saadah neighborhood is attracting interest with its affordable homes and potential for property appreciation
Al Saadah in Salalah is becoming a popular choice for property buyers due to its affordable housing options and potential for appreciation.
One of the main attractions is the lower property prices compared to other areas in Salalah. For example, the price per square meter in Al Saadah is 290 OMR, while in other parts of the city, it can soar up to 487 OMR. This makes Al Saadah a great option for those looking to buy property without breaking the bank.
The Omani government is also investing in infrastructure, which is boosting Al Saadah's appeal. These improvements are enhancing connectivity and accessibility, making the neighborhood more attractive to property buyers. Both local and international buyers are taking notice, seeing the potential for property appreciation in the coming years.
Salalah's growing popularity as a tourist destination is another factor driving demand for housing. The influx of tourists is naturally increasing the demand for housing, including in Al Saadah. Real estate agents are reporting a growing interest in the area, thanks to its affordability and potential for appreciation.
With the combination of affordable prices, government investment, and rising demand, Al Saadah is positioned as a promising area for property investment. Buyers are drawn to the neighborhood's potential for growth and the opportunity to invest in a developing area.
Sources: Numbeo, MarkNtel Advisors
2) Qurum in Muscat is popular for its upscale homes and scenic views, driving high property values
Qurum in Muscat is a top choice for those seeking upscale residential living.
In Qurum, property prices are quite high, with one-bedroom apartments going for about OMR 48,000 (US$124,500) and three-bedroom ones reaching OMR 70,000 (US$181,600). This is a clear sign of a premium market, especially when compared to areas like Al Khuwair.
The area is famous for its vibrant neighborhoods and stunning coastal views. It offers a mix of luxurious villas and modern apartments, making it ideal for those who want a high-end lifestyle. The real estate market in Oman, including Qurum, is expected to grow steadily, adding to its allure.
Real estate agents note a rising demand for properties in Qurum, driven by limited housing stock and upcoming renovations to heritage buildings. The area's luxury developments, like villas with expansive living spaces and panoramic views of the Arabian Sea, are a big draw.
Living in Qurum means enjoying a high quality of life, with access to upscale shopping malls, gourmet restaurants, and recreational clubs. The scenic views of the Gulf of Oman and the area's natural beauty are major selling points for potential buyers.
Media articles often highlight Qurum's residential appeal and scenic beauty, reinforcing its status as a desirable place to live. The combination of luxury, views, and lifestyle makes it a standout choice.
Sources: MKM Muscat, Global Property Guide, Oman Design and Build Week
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.
3) Al Ghubra in Muscat is in high demand for its central location and access to commercial hubs
Al Ghubra is in high demand because it's centrally located with easy access to commercial hubs.
In Muscat, Al Ghubra is becoming a hot spot for property buyers, thanks to its strategic location near major business districts. This trend is similar to what we've seen in other popular neighborhoods like Al Mouj and Qurum, where demand has surged. If you're considering buying property in Oman, central areas are where the action is.
Al Ghubra's appeal lies in its proximity to key commercial centers, which is driving up property prices. This mirrors the situation in Qurum and Al Mouj, where being close to business hubs has led to increased demand. Expect property prices to rise as more people look to settle in these convenient locations.
Rental properties in Al Ghubra are also seeing a boost, likely due to its central location and access to amenities. This is part of a broader trend in Muscat, where rental markets in central areas like Al Mouj and Qurum are stabilizing and growing. Living in Al Ghubra means convenience, with everything you need just a short distance away.
While specific transaction data for Al Ghubra isn't available, the overall trend in Oman shows that central locations are attracting more buyers. This is evident in the increased activity in neighborhoods like Al Mouj and Qurum. Al Ghubra is following this pattern, making it a promising area for investment.
Sources: Mordor Intelligence, Arab Urban Development Institute, Sands Of Wealth, Savills
4) Sur is gaining interest for its coastal charm and tourism-related property investment potential
Sur is quickly becoming a hotspot in Oman's real estate market.
One of the main reasons is the overall growth in Oman's real estate sector, especially in coastal areas like Sur. This trend is part of a larger movement where the Oman Residential Real Estate Market is expected to see significant growth in the coming years. Sur's coastal charm is attracting both investors and homebuyers, making it a prime location for real estate transactions.
Property prices in Sur are on the rise, with expectations of further increases by 2025. This indicates a growing demand for real estate in the area, particularly in neighborhoods experiencing luxury housing developments. The limited housing stock in these areas is driving up prices, making it an attractive market for potential investors.
Tourism is another key factor boosting Sur's real estate market. The room occupancy rate in Oman has been active, reflecting a growing interest in tourism. The Ministry of Heritage and Tourism is actively promoting Sur as a tourist destination, offering special tourism packages and activities. This focus on tourism is likely to enhance the real estate market as more visitors consider investing in properties.
Sur's potential for tourism-related property investments is gaining traction. The area's coastal charm and strategic location make it an appealing choice for those looking to invest in vacation homes or rental properties. As tourism continues to grow, so does the opportunity for real estate investments in Sur.
With its picturesque landscapes and increasing popularity, Sur is becoming a sought-after destination for both tourists and real estate investors. The combination of rising property prices, luxury housing projects, and a thriving tourism industry makes Sur a promising market for those looking to invest in Oman's real estate sector.
Sources: Mordor Intelligence, CEIC Data, Muscat Daily
5) Al Mouj in Muscat is thriving with luxury waterfront properties and high rental yields
Al Mouj in Muscat is a hot spot for real estate, thanks to its luxury waterfront properties and high rental yields.
Even when the economy faced challenges like fluctuating oil prices and the pandemic, the demand for ultra-luxury properties in Al Mouj stayed strong. A great example is the Golf Beach Residences, which saw a lot of interest from luxury property seekers. This shows how appealing the area is for those looking for high-end living.
Rental yields in Al Mouj have been consistently high, making it a favorite for investors. Although there was a slight dip in rental values around 2021, they bounced back in 2022. High occupancy levels for villas and townhouses indicate a stable rental market, which is great news for anyone looking for reliable returns.
New luxury projects like Al Mouj Sarai are on the horizon, and they're expected to boost property values even more. Al Mouj's strategic location near Muscat International Airport and business districts makes it a prime choice for both local and international buyers. The area is packed with high-end amenities, including a private beach and yacht club, adding to its allure as a top destination for luxury living.
Al Mouj's appeal is not just about the properties; it's about the lifestyle. The presence of high-end amenities makes it a premier destination for those seeking luxury living. Whether you're a local or an international buyer, the combination of location, amenities, and stable returns makes Al Mouj a compelling choice.
For anyone considering investing in real estate, Al Mouj offers a unique blend of luxury and practicality. Its high rental yields and stable market make it an attractive option for investors looking for both lifestyle and financial returns.
Sources: Mordor Intelligence, Oman Off Plan, Muscat Daily
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6) Seeb in Muscat is popular for its affordable homes and airport proximity, ideal for frequent travelers
The Seeb area in Muscat is a hotspot for affordable housing.
In recent years, Seeb has stood out because property prices here are lower than in other parts of Muscat. This is largely due to a unique supply and demand situation in the real estate market, offering more budget-friendly options. If you're looking for a place that won't break the bank, Seeb might just be your answer.
One of Seeb's biggest draws is its proximity to Muscat International Airport. Just 20 kilometers away, it’s a quick 30-minute drive, making it perfect for frequent flyers. Imagine the convenience of living so close to the airport, especially if you travel often for work or leisure.
Seeb is also gaining popularity among expatriates, with a noticeable increase in demand for rental accommodations. This trend is fueled by the area's practical living options and its strategic location near the airport. For those who are always on the go, Seeb offers a lifestyle that’s both convenient and comfortable.
Living in Seeb means you’re not just saving on housing costs but also enjoying the perks of a well-connected location. The area is ideal for those who value both affordability and accessibility, making it a smart choice for many potential homeowners and renters.
Sources: Mordor Intelligence, AirMundo, MarkNtel Advisors
7) Al Hail North in Muscat is gaining interest for its family-friendly vibe and modern amenities, driving property value growth
Al Hail North in Muscat is becoming a popular choice for families due to its rising property values and family-friendly environment.
One of the key attractions is the development of new schools and parks, which are perfect for families with kids. These amenities not only enhance the quality of life but also make the area more appealing, naturally boosting property values.
The area is also seeing an expansion of retail and dining options tailored for families. This makes everyday life more convenient and enjoyable, attracting those looking to settle in a family-friendly setting. Real estate agencies are quick to spotlight these features, adding to the area's charm.
Improved infrastructure and transportation links are another big plus. These upgrades make commuting and accessing local amenities easier, a major factor for families deciding where to live. This convenience is drawing more families and investors to Al Hail North, further driving up property values.
Insider knowledge suggests that the area is also benefiting from a community-focused atmosphere, with events and activities that bring residents together. This sense of community is a significant draw for families looking for more than just a place to live.
With all these factors combined, it's no wonder that Al Hail North is seeing a surge in interest from both families and investors, making it a prime location for property investment.
Sources: Sands Of Wealth, MarknTel Advisors
8) Sohar is booming with its strategic port location and growing industrial activities driving housing demand
Sohar is a booming market thanks to its strategic location as a port city and the surge in industrial activities.
With the expansion of Sohar Port and Freezone, the area has become a key spot for industrial and logistics developments. This growth is attracting more industries, which in turn is driving up the demand for housing. As companies set up shop, they bring in workers who need places to live.
The Sohar Industrial Port is a major player in this transformation. Its strategic location is pulling in significant industrial investments, making it a magnet for expatriate workers and industrial professionals. These folks are moving to Sohar for the job opportunities, and they need homes.
Oman's expatriate population is on the rise, hitting 2.2 million in May 2023. Many of these newcomers are heading to Sohar, especially in areas like Falaj Al Qabail and Al Hambar, drawn by the bustling industrial sector.
In these neighborhoods, the demand for housing is particularly strong. The influx of expatriates is not just a trend; it's a significant factor in the local real estate market. People are coming for the jobs, and they’re staying for the opportunities.
So, if you're considering buying property in Sohar, you're looking at a place with growing demand driven by industrial growth and a strategic location. It's a city on the rise, with plenty of potential for future development.
Sources: AGBI, City Population, Migrate World
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.
9) Nizwa is gaining attention for its cultural heritage and rising interest in traditional Omani architecture
Nizwa is becoming a hot spot for property buyers because of its rich cultural heritage and traditional Omani architecture.
In recent years, Nizwa has seen a surge in tourism, drawing visitors with its unique mix of old and new attractions. This influx of tourists has significantly boosted Oman’s overall visitor numbers, underscoring Nizwa’s growing appeal as a travel destination. The city’s charm lies in its ability to offer a glimpse into Oman’s past while embracing modernity.
Property prices in Nizwa are on the rise, reflecting its increasing popularity. This trend is largely driven by the growing interest in traditional Omani architecture and the area’s cultural heritage. Landmarks like the Nizwa Fort tell the story of Oman’s rich history, attracting real estate developers keen on preserving these traditional styles. This focus on heritage is making Nizwa a desirable location for both expatriates and locals.
The government has been instrumental in promoting Nizwa’s cultural heritage sites. The Oman Tourism Development Company reported a record performance in 2023, thanks to better operational expenses and enhanced tourism experiences. This success has led to more investment in infrastructure, including new hotels and attractions, which are fueling the growth of Oman’s tourism sector.
Media coverage and social media have played a big role in highlighting Nizwa’s cultural significance. This increased visibility has further piqued interest in the city as a cultural destination. The buzz around Nizwa is not just about its past; it’s about how the city is evolving while staying true to its roots.
With the government’s support and a growing interest in its cultural offerings, Nizwa is poised to become a key player in Oman’s real estate market. The city’s blend of tradition and modernity is attracting a diverse range of investors and tourists alike.
Sources: Explore City, Travel and Tour World, Peregrine Treks
10) Duqm is gaining attention for its rapid industrial growth and rising demand for residential properties
Duqm is quickly becoming a real estate hotspot thanks to its rapid industrial development.
The opening of the Port of Duqm in 2022 has been a game-changer, attracting significant investment in the downstream hydrocarbons industries. This port has become a go-to spot for businesses seeking commercial opportunities, making Duqm a bustling hub of activity. The upcoming Duqm Refinery, set to open by the end of 2023, is another major project fueling this industrial boom. It's expected to create a lot of jobs, which will boost the local economy and drive up demand for homes.
The government is also playing a big role in Duqm's transformation. Through initiatives like the Special Economic Zone Authority of Duqm (SEZAD), they've teamed up with international companies to turn Duqm into a major economic center. This collaboration is paving the way for more development and making Duqm an attractive place for investors and residents alike.
Job creation is a big part of why Duqm is on the rise. With the potential to create up to 20,000 jobs, the area is drawing in a young workforce eager for new opportunities. This influx of workers naturally leads to a higher demand for housing, which is why we're seeing new residential projects popping up. The improved infrastructure, including the construction of 32 new roads, has made Duqm more accessible and appealing for both businesses and residents.
For those considering buying property in Duqm, it's worth noting that the area is not just about industry. The lifestyle here is evolving, with new amenities and services catering to the growing population. This makes it an exciting time to invest in Duqm, as the region is poised for continued growth and development.
As Duqm continues to develop, it's becoming a place where people want to live and work. The combination of job opportunities, improved infrastructure, and government support is creating a vibrant community. If you're thinking about buying property in the country, Duqm is definitely a place to keep an eye on.
Sources: Oxford Business Group, Times of Oman, Connsect
11) Barka is gaining interest from investors for its expanding infrastructure and potential for long-term property appreciation
Barka is quickly becoming a hotspot for real estate investors.
One major draw is the government's hefty investment in infrastructure, like the Barka 5 Water Project, which started operations in 2024. This project shows a strong commitment to supporting the area's growing population and the rising demand for real estate.
Adding to the appeal, new commercial and residential developments are on the horizon, including Integrated Tourism Complexes (ITCs). In 2023, Oman approved 19 ITC licenses, pouring over $11 billion into hospitality and real estate. These projects promise thousands of new hotel rooms and housing units, with Barka likely to see some of this action.
Barka's population has been booming, nearly doubling from 2010 to 2020. This surge is a clear indicator of the strong demand for housing. The residential real estate market is expected to grow significantly, driven by the increasing need for homes in areas like Barka.
For those eyeing long-term property appreciation, Barka's expanding infrastructure and development projects make it a promising choice. The combination of government backing and private investment is setting the stage for a thriving real estate market.
Sources: Connsect, MEED, City Population, JLL, GII Research
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12) Al Khoudh in Muscat is popular for its proximity to universities, attracting student renters and ensuring steady rental income
Al Khoudh in Muscat is a hotspot for student renters due to its close proximity to Sultan Qaboos University.
With over 6,937 students enrolled at this top public university, the demand for nearby housing is booming. Students are eager to find convenient and affordable places to live, making Al Khoudh a prime choice.
Rental market reports show that properties in Al Khoudh often have occupancy rates of 98% or more. This high demand is largely driven by students who want to live close to their university, ensuring they have easy access to classes and campus life.
For property owners, this means consistent rental income thanks to the steady stream of student renters. The area's popularity among students is a reliable source of income for landlords.
Al Khoudh's appeal is not just about location; it's about the lifestyle it offers. Students enjoy the convenience of being near cafes, libraries, and other amenities that cater to their needs, making it a vibrant community.
Investing in Al Khoudh is a smart move for those looking to tap into the student housing market, as the steady demand ensures minimal vacancy and a reliable return on investment.
Sources: Times Higher Education, JLL, RealPage Analytics
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.