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
Buying property in Oman as a foreigner in 2026 is not just about picking a nice neighborhood; it is about understanding where you are legally allowed to own freehold and where your money will actually work for you.
This guide breaks down each area of Oman with real data on prices, yields, and trends so you can make an informed decision without relying on vague marketing claims.
We constantly update this blog post to reflect the latest market shifts and official statistics as they are released.
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.
What's the Current Real Estate Market Situation by Area in Oman?
Which areas in Oman have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Oman are Al Mouj (The Wave) in Seeb, Muscat Bay near Bandar Jissah, and Shatti Al Qurum along the coastal edge of Muscat, where prices reflect the premium lifestyle these districts offer.
In these top-tier neighborhoods, typical prices in Oman range from about OMR 1,800 to OMR 2,750 per square meter, with branded residences and beachfront units pushing even higher in exceptional cases.
Each of these areas commands high prices for specific reasons that go beyond just being "nice places to live."
- Al Mouj (The Wave): Marina lifestyle, beach access, walkability, and the largest pool of foreign buyers eligible for freehold ownership.
- Muscat Bay: Extremely limited coastline supply that is foreigner-accessible, plus scarcity of comparable luxury coastal ITC projects.
- Shatti Al Qurum: Mature prestige district with established services, dining corridor, and proximity to government and business centers.
Which areas in Oman have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Oman for residential property are Al Amerat, Al Maabela in Seeb, and parts of Al Khoudh and Al Hail, where entry-level buyers can access the market without the premium attached to coastal or ITC districts.
In these more budget-friendly neighborhoods, typical prices in Oman range from approximately OMR 400 to OMR 700 per square meter, depending on building age and exact location within each district.
However, buyers should expect trade-offs: Al Amerat involves longer commute times and can feel isolated during peak summer heat, Al Maabela requires careful micro-location selection due to variable road access and flood-risk wadis, and Al Khoudh faces constant new supply competition that can cap resale values over time.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Oman Offer the Best Rental Yields?
Which neighborhoods in Oman have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Oman delivering the highest gross rental yields are Al Khuwair at around 7% to 8%, Ghubrah at approximately 6% to 7.5%, and Azaiba at roughly 6% to 7%, where strong tenant demand meets relatively affordable entry prices.
Across Oman as a whole, typical gross rental yields for residential investment properties range from about 5% to 8%, with mid-market working districts outperforming trophy coastal areas on yield math alone.
Each of these high-yield neighborhoods has a specific engine driving returns.
- Al Khuwair: Central location attracts working expat professionals who prioritize commute convenience over lifestyle amenities.
- Ghubrah: Steady long-term tenant base near Sultan Qaboos Street with lower capital intensity than prime coastal districts.
- Azaiba: Strong utility value for airport-corridor tenants and mid-level corporate employees who rent rather than buy.
Finally, please note that we cover the rental yields in Oman here.
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Which Areas in Oman Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Oman perform best on Airbnb in 2026?
As of early 2026, the best-performing Airbnb neighborhoods in Oman are Al Mouj (The Wave) with strong occupancy from lifestyle travelers, Muttrah near the historic corniche and souq attracting tourists, and Qurum's coastal edge drawing beach-seekers, with nightly rates ranging from about OMR 25 to OMR 60 for typical listings.
Top-performing short-term rental properties in Muscat can generate monthly revenues of approximately OMR 250 to OMR 900, with best-in-class units in prime locations reaching over OMR 1,200 per month during peak season from November to February.
The reasons these neighborhoods outperform others on Airbnb in Oman are quite distinct.
- Al Mouj (The Wave): Marina walkability and beach access reduce seasonality risk and attract visiting friends and family of expat residents.
- Muttrah: Proximity to heritage attractions, Mutrah Souq, and the corniche makes it the default tourist location for cultural visitors.
- Qurum coastal edge: Beach access plus the dining and cafe corridor appeals to weekenders and business travelers staying longer.
- Muscat Bay: Premium vacation demand with higher average daily rates, though more seasonal and sensitive to community rules.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Oman.
Which tourist areas in Oman are becoming oversaturated with short-term rentals?
The tourist areas in Oman showing signs of oversaturation for short-term rentals are investor-heavy apartment clusters within Al Mouj, the compact Muttrah heritage tourist core, and generic "Qurum-adjacent" apartment blocks marketed primarily on sea proximity.
In these potentially saturated zones, the density of active Airbnb listings has grown significantly, with Muscat overall tracking over 700 active vacation rentals and the most tourist-focused micro-pockets seeing multiple new listings competing for the same booking pool each month.
The clearest indicator of oversaturation in Oman is not just listing counts but occupancy rates declining while supply rises; median occupancy in Muscat sits around 34%, meaning many hosts face significant vacant nights, especially in generic units without standout amenities or views.
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.
Which Areas in Oman Are Best for Long-Term Rentals?
Which neighborhoods in Oman have the strongest demand for long-term tenants?
The neighborhoods in Oman with the strongest demand for long-term tenants are Al Mouj (The Wave), Madinat Al Sultan Qaboos (MSQ), Al Khuwair, and Muscat Hills, where expat professionals and families consistently compete for available units.
In these high-demand districts, well-priced properties typically rent within two to four weeks, and vacancy rates remain among the lowest in Muscat because tenant demand consistently outpaces quality supply.
Each neighborhood attracts a specific tenant profile that drives its rental demand.
- Al Mouj (The Wave): Senior expat executives and families seeking lifestyle amenities and international school proximity.
- Madinat Al Sultan Qaboos (MSQ): Established families valuing mature services, embassy proximity, and stable villa-style living.
- Al Khuwair: Mid-level corporate employees prioritizing central location and commute efficiency over premium finishes.
- Muscat Hills: Golf community households and airport-corridor professionals who value quick access to travel.
The key amenity making these neighborhoods attractive to long-term tenants in Oman is actually walkability and daily convenience: tenants pay more to live where they can access groceries, dining, schools, and healthcare without driving across the city for every errand.
Finally, please note that we provide a very granular rental analysis in our property pack about Oman.
What are the average long-term monthly rents by neighborhood in Oman in 2026?
As of early 2026, average long-term monthly rents for a two-bedroom apartment in Oman's main Muscat neighborhoods range from approximately OMR 350 in Muscat Hills to OMR 710 in Al Mouj, with mid-market areas like Al Khuwair at about OMR 475 and Qurum around OMR 400.
For entry-level apartments in more affordable Oman neighborhoods like parts of Seeb, Al Ghubrah, or outer Al Khoudh, typical monthly rents start from around OMR 200 to OMR 300 for basic two-bedroom units without premium finishes.
Mid-range apartments in average-priced Muscat neighborhoods such as Al Khuwair, Azaiba, or Ghubrah typically rent for about OMR 350 to OMR 500 per month, offering a balance between location convenience and budget.
High-end apartments and villas in Oman's most expensive neighborhoods like Al Mouj command monthly rents of OMR 700 to OMR 1,500 or more, with four-bedroom villas in Muscat Hills or MSQ reaching OMR 1,000 to OMR 1,500 depending on condition and exact location.
You may want to check our latest analysis about the rents in Oman here.
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Which Are the Up-and-Coming Areas to Invest in Oman?
Which neighborhoods in Oman are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Oman attracting the most new investor attention are the Sultan Haitham City corridor in Seeb, the Ruwi CBD micro-pockets positioned for transit upgrades, and expanding edges of established ITCs like Al Mouj where new phases are being delivered.
These gentrifying areas in Oman have shown price appreciation of roughly 10% to 20% annually in the best-located plots, driven by infrastructure investment announcements and the broader national residential index growth of 18.7% year-on-year reported in Q3 2025.
Which areas in Oman have major infrastructure projects planned that will boost prices?
The areas in Oman with the most significant infrastructure projects expected to boost property prices are the Sultan Haitham City corridor in Seeb, the Ruwi to Sultan Haitham City metro spine, and the Al Khuwair Downtown redevelopment zone.
The specific projects driving these expectations include Sultan Haitham City (a 14.8 sq km smart city for 100,000 residents with 20,000 homes, first handovers mid-2026), the proposed 50 km Muscat Metro with 36 stations connecting to Muscat International Airport, and the USD 1.3 billion Al Khuwair Downtown waterfront mixed-use development.
Historically in Oman and similar Gulf markets, areas along confirmed transit routes or adjacent to major new city developments have seen price increases of 15% to 30% within two to three years of project announcements, with the strongest gains occurring before construction completion when speculation is highest.
You'll find our latest property market analysis about Oman here.
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.
Which Areas in Oman Should I Avoid as a Property Investor?
Which neighborhoods in Oman with lots of problems I should avoid and why?
The neighborhoods in Oman that property investors should generally approach with caution include non-ITC districts if you require foreign freehold ownership, far-outer sprawl areas with weak transport links, and STR-dependent tourist micro-pockets with tightening competition.
Each problematic area has specific issues investors should understand.
- Non-ITC districts (for foreign buyers): Even attractive neighborhoods become risky when your resale pool shrinks to only Omani buyers or specific residency holders.
- Far Al Amerat and outer Seeb sprawl: Long commutes, heavy traffic, and constant new supply competition create a "cheap for a reason" trap.
- Muttrah STR-dependent units: Small tourist demand surface area means new listings quickly crowd the same booking pool, crashing returns.
For these areas to become viable investment options, you would need either a change in foreign ownership laws (unlikely in the short term), major transport infrastructure like the metro actually reaching these zones, or significant supply constraints that currently do not exist.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Oman.
Which areas in Oman have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Oman showing stagnant or declining property prices are primarily found in Al Buraimi (down 24.6% year-on-year), Al Dhahirah (down 25.8%), Al Wusta (down 13.3%), and certain older apartment blocks in mid-market Muscat districts facing new supply competition.
These underperforming governorates and micro-markets in Oman have experienced declines ranging from about 4% to 26% over the past year, contrasting sharply with the national average growth of 17% to 19%.
The underlying causes of price stagnation or decline vary by location.
- Al Buraimi: Border-region economy sensitive to cross-border trade fluctuations and limited local employment growth.
- Al Dhahirah: Interior location with minimal tourist or expat demand and dependence on government employment centers.
- Al Wusta: Remote central region with very thin transaction volumes and limited infrastructure investment.
- Older Muscat apartment stock: Buildings aging poorly face tenant migration to newer nearby projects with better amenities.
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Which Areas in Oman Have the Best Long-Term Appreciation Potential?
Which areas in Oman have historically appreciated the most recently?
The areas in Oman that have historically appreciated the most over recent years are Muscat Governorate (particularly central districts), Al Mouj (The Wave), Muscat Hills, and premium coastal ITC projects like Muscat Bay, where limited supply meets strong demand.
Here is a snapshot of recent appreciation performance by area.
- Muscat Governorate residential land: Up 48.3% year-on-year in Q3 2025, the highest in the country.
- Al Mouj (The Wave): Consistent rent premium growth suggesting capital values have risen roughly 15% to 20% over two years.
- Muscat Hills: Villa rents increased meaningfully through 2025, indicating capital appreciation in the 10% to 15% range.
- Apartments nationally: Up 22.4% year-on-year, villas up 16.5% as of Q3 2025.
The main driver behind above-average appreciation in these Oman areas is the combination of foreign-buyer eligibility in ITCs, scarcity of quality coastal supply, and the dramatic shift in Oman's residential market from decline in 2024 to strong recovery in 2025.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Oman.
Which neighborhoods in Oman are expected to see price growth in coming years?
The neighborhoods in Oman expected to see the strongest price growth over the coming years are Sultan Haitham City corridor, established ITCs with ongoing expansion phases, premium coastal districts with supply constraints, and areas along the proposed Muscat Metro route.
Projected annual price growth for these high-potential neighborhoods varies based on development stage.
- Sultan Haitham City: Early-stage premium of 8% to 15% annually as infrastructure completes and first residents arrive by mid-2026.
- Al Mouj new phases: Steady 5% to 8% growth as amenity maturity continues and foreign demand remains concentrated.
- Muscat Metro corridor (Ruwi to Seeb): Potential 10% to 20% uplift over three to five years once metro construction begins.
- Muscat Hills: Projected 5% to 7% annually supported by golf community positioning and airport proximity.
The single most important catalyst expected to drive future price growth in these Oman neighborhoods is the government's commitment to Vision 2040 infrastructure investment, which channels billions of rials into transport, utilities, and urban development that directly benefits adjacent property values.
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 Do Locals and Expats Really Think About Different Areas in Oman?
Which areas in Oman do local residents consider the most desirable to live?
The areas in Oman that local Omani residents consider most desirable to live are Qurum and Shatti Al Qurum, Madinat Al Sultan Qaboos (MSQ), Al Mouj (The Wave), and parts of Bausher with mountain views, where established services meet prestige and convenience.
Each of these locally-preferred areas has qualities that resonate with Omani residents.
- Qurum / Shatti Al Qurum: Mature coastal district with beach access, established schools, and the main dining and leisure corridor.
- Madinat Al Sultan Qaboos (MSQ): Quiet, villa-dominated neighborhoods with embassy proximity and generational family presence.
- Al Mouj (The Wave): Modern lifestyle appeal attracting younger Omani professionals alongside expats.
- Bausher: Mountain proximity, cooler evenings, and larger plots for traditional family compounds.
The typical demographic in these locally-preferred Oman areas includes established Omani families, senior government employees, successful business owners, and increasingly, younger Omani professionals choosing modern ITC living.
Local Omani preferences largely overlap with foreign investor targets in areas like Al Mouj and Qurum, but diverge in places like MSQ and Bausher where the appeal is more about family roots and local community than investment returns or ITC ownership eligibility.
Which neighborhoods in Oman have the best reputation among expat communities?
The neighborhoods in Oman with the best reputation among expat communities are Al Mouj (The Wave), Madinat Al Sultan Qaboos (MSQ), Muscat Hills, and Al Khuwair, where established expat networks, international schools, and lifestyle amenities create comfortable living environments.
Expats prefer these neighborhoods for distinct reasons.
- Al Mouj (The Wave): Marina lifestyle, beach access, walkability, restaurants, and largest concentration of international residents.
- MSQ: Stable villa living with mature services, diplomatic community presence, and family-friendly atmosphere.
- Muscat Hills: Golf community appeal, airport proximity for frequent travelers, and newer housing stock.
- Al Khuwair: Central location, practical amenities, and more affordable rents compared to premium coastal areas.
The typical expat profile in these Oman neighborhoods includes senior corporate executives and their families in Al Mouj and MSQ, mid-level managers and consultants in Al Khuwair, and golf-oriented professionals and frequent business travelers in Muscat Hills.
Which areas in Oman do locals say are overhyped by foreign buyers?
The areas in Oman that locals commonly say are overhyped by foreign buyers are certain generic apartment buildings within Al Mouj that lack prime views or walkability, new off-plan ITC projects with aggressive marketing but unproven track records, and STR-focused units in tourist areas bought purely on projected Airbnb returns.
Locals believe these areas are overvalued for specific reasons.
- Non-prime Al Mouj apartments: Foreigners pay near-premium prices for units that lack the marina/beach views driving the real value.
- New ITC off-plan projects: Marketing promises lifestyle features years before amenities actually exist, inflating early prices.
- Muttrah STR units: Foreign investors overpay expecting tourist income that competition and regulations quickly erode.
What foreign buyers typically see in these areas that locals do not value as highly is the ITC "label" itself, since foreigners often prioritize ownership eligibility over unit quality, while locals who can buy anywhere focus more on actual livability and long-term neighborhood trajectory.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Oman.
Which areas in Oman are considered boring or undesirable by residents?
The areas in Oman that residents commonly consider boring or undesirable are far-outer residential sprawl in Seeb with no neighborhood center, parts of Al Amerat that require long commutes for any leisure or shopping, and some inland industrial-adjacent zones in North Al Batinah governorate.
Residents find these areas uninspiring for practical reasons.
- Far Seeb sprawl (beyond Al Mawaleh): Car-dependent for everything, no walkable cafes or community spaces, generic housing blocks.
- Outer Al Amerat: Hot in summer, limited services, and daily life becomes a series of long drives across the city.
- Inland North Al Batinah: Industrial employment focus with minimal lifestyle amenities, entertainment, or community identity.
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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 |
|---|---|---|
| National Centre for Statistics and Information (NCSI) | Oman's official government statistics agency providing ground-truth market data. | We anchored macro price trends and the residential index direction. We used governorate-level breakdowns to identify winners and underperformers. |
| Savills Oman Research | Major global real estate consultancy with consistent methodology and local presence. | We used their neighborhood rent benchmarks to compute yield ranges. We validated rent momentum trends for prime Muscat districts. |
| Cavendish Maxwell | Regional consultancy known for data-driven market reports and clear sourcing. | We calibrated top-end pricing using their branded residence OMR/sqm charts. We referenced their ITC supply analysis for foreign demand patterns. |
| Ministry of Housing and Urban Planning (MOHUP) | Government body responsible for land, planning, and real estate systems in Oman. | We grounded planning and new-city project details like Sultan Haitham City. We referenced official transaction system language and services. |
| Royal Decree No. 12/2006 (ITC Law) | Primary legal text defining freehold ownership rules for foreigners in Oman. | We used it to explain where foreigners can own freehold. We defined why demand concentrates in specific ITC districts. |
| Al Tamimi & Company | Top-tier regional law firm providing authoritative legal interpretation. | We translated the ITC framework into practical buyer implications. We cross-checked legal nuances against the Royal Decree text. |
| Central Bank of Oman (CBO) | Monetary authority providing the best data on mortgage and credit conditions. | We framed financing conditions affecting demand. We explained why some segments move faster when credit expands. |
| AirDNA | Widely used short-term rental dataset with standardized occupancy and revenue metrics. | We anchored Muscat STR performance data for occupancy and daily rates. We identified potential oversaturation patterns in tourist areas. |
| Oman Observer / Vision 2040 Coverage | Major national newspaper reporting on official government infrastructure plans. | We identified future accessibility improvements along the Muscat Metro corridor. We used it as infrastructure catalyst input for up-and-coming areas. |
| Ministry of Heritage and Tourism | Regulator most relevant to tourism demand driving short-term rental performance. | We anchored tourism-side discussion and avoided vibe-only claims. We treated private STR dashboards as secondary to the regulatory framework. |
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