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 offers solid investment potential with rising prices and decent rental yields, especially in Muscat and emerging areas like Duqm.
Property prices across Oman increased by 7.3% year-on-year in 2025, with apartments in Muscat leading the charge at 17% growth, making it an attractive market for both investors and residents seeking quality lifestyle options.
If you want to go deeper, you can check our pack of documents related to the real estate market in Oman, based on reliable facts and data, not opinions or rumors.
Oman's property market is experiencing solid growth with prices rising 7.3% in 2025, led by Muscat's strong performance and supported by Vision 2040 infrastructure projects.
Foreign buyers can purchase property in Integrated Tourism Complexes with full ownership, while rental yields average 3-7% depending on location and property type.
| Key Factor | Current Status (2025) | Investment Appeal |
|---|---|---|
| Price Growth | +7.3% YoY overall, +17% apartments in Muscat | Strong upward momentum |
| Rental Yields | 3-7% average, highest in Duqm and Salalah | Competitive regional returns |
| Foreign Ownership | Full ownership in ITCs, OMR 45,000 minimum | Accessible with clear regulations |
| Financing Options | 50-70% LTV for foreigners, 4-6% rates | Reasonable but cash often preferred |
| Market Outlook | 3-5% annual growth forecast to 2030 | Steady appreciation expected |
| Best Areas | Muscat ITCs, Duqm, Salalah emerging | Clear hotspots for investment |
| Entry Budget | OMR 30,000 apartments, OMR 200,000+ villas | Multiple price points available |
What are the current property prices in Oman by area and property type?
Property prices in Oman vary significantly by location, with Muscat commanding the highest rates across all property types.
In Muscat, apartments cost approximately OMR 1,434 per square meter while houses average OMR 1,435 per square meter. The price per square foot stands at OMR 170 for apartments and OMR 143 for houses, reflecting the premium attached to urban living in the capital.
Luxury areas within Muscat, including Al Mouj, Qurum, and Muscat Bay, represent the top tier of the market. Villas in these Integrated Tourism Complexes start from OMR 200,000, with luxury apartments reaching up to OMR 500,000. However, budget-conscious buyers can find entry-level apartments starting at OMR 30,000 in less central locations.
Outside Muscat, property prices are generally lower but show strong regional variations. Musandam has experienced remarkable growth with prices rising 12.8% year-on-year, while Al-Batinah region shows steady appreciation of 6-7% annually. Conversely, some areas like Al Buraimi have seen price declines, creating potential opportunities for value-focused buyers.
It's something we develop in our Oman property pack.
How have property prices in Oman changed over the past 5 years, and what are the short-term trends?
Oman's property market has experienced a dramatic recovery cycle over the past five years, transitioning from significant declines to robust growth.
Between 2015 and 2021, residential property prices dropped by up to 30% due to economic challenges and reduced oil revenues. This extended downturn created attractive entry points for investors who recognized the underlying value in Omani real estate.
The market began its strong rebound in 2023, gaining momentum throughout 2024 and accelerating in 2025. As of September 2025, property prices have increased by 7.3% year-on-year overall, with apartments showing particularly impressive gains of 17% in May 2025, while villas appreciated by 6.4%.
Muscat has led this recovery, with land values rising 17.4% in the capital region. This growth reflects renewed confidence in Oman's economic diversification efforts and the impact of major infrastructure projects. However, not all areas have participated equally, with Al Buraimi continuing to experience price pressures.
The short-term trend points to continued momentum, supported by increased construction activity and growing demand from both local buyers upgrading their homes and international investors recognizing Oman's stability.
What are the medium-term forecasts for the Omani property market over the next 3 to 5 years?
Medium-term forecasts for Oman's property market indicate steady, sustainable growth rather than speculative bubbles.
Property analysts predict annual price growth of 3-5% through 2030, with Muscat and Duqm expected to lead this appreciation. This growth trajectory reflects realistic expectations based on economic fundamentals rather than speculative demand.
The forecast is underpinned by several key drivers including Oman's Vision 2040 economic diversification plan, ongoing infrastructure development, and increasing urbanization. Major projects like Sultan Haitham City and the continued development of Duqm Special Economic Zone are expected to create sustained demand for quality housing.
Duqm, in particular, presents significant medium-term potential as government investment in port facilities, industrial zones, and tourism infrastructure attracts both businesses and residents. Early investors in this emerging hub may benefit from above-average appreciation as the area develops its full potential.
The medium-term outlook also benefits from Oman's political stability and gradual economic reforms, which continue to attract foreign investment and expatriate residents seeking quality housing options.
What is the long-term outlook for property values in Oman over the next decade?
The long-term outlook for Omani property values over the next decade appears positive but measured, with steady appreciation expected rather than dramatic price spikes.
Property values are projected to appreciate consistently through 2030 and beyond, supported by Oman's ongoing economic transformation and infrastructure development. The government's Vision 2040 plan emphasizes economic diversification away from oil dependency, creating new employment centers and residential demand.
Over the next decade, mega-projects including Sultan Haitham City, expanded tourism facilities, and industrial developments in Duqm and Sohar are expected to drive sustained demand. These developments will likely create new property hotspots and support values across the country.
Unlike some regional markets that experience volatile boom-bust cycles, Oman's property market is positioned for gradual, sustainable growth. This stability makes it attractive for long-term investors seeking steady appreciation without excessive speculation risk.
The demographic trends also support long-term growth, with urbanization continuing and a growing middle class seeking improved housing. Additionally, Oman's reputation for political stability and moderate governance continues to attract international residents and investors looking for secure property investments.
Don't lose money on your property in Oman
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Which areas in Oman are most attractive for residential living, and what are the average prices there?
Muscat's Integrated Tourism Complexes represent the most attractive areas for residential living, offering world-class amenities and expat-friendly communities.
Al Mouj stands out as the premier residential destination, featuring marina access, golf courses, international schools, and comprehensive retail facilities. Property prices here start from OMR 1,600+ per square meter for apartments and OMR 2,000+ per square meter for houses, reflecting the premium lifestyle offerings.
Qurum and Madinat Al Sultan Qaboos provide excellent alternatives within Muscat, combining urban convenience with quality residential environments. These areas offer good access to international schools, healthcare facilities, and business districts while maintaining more moderate pricing than the top-tier ITCs.
Muscat Bay offers luxury waterfront living with high-end amenities including beaches, restaurants, and recreational facilities. The integrated development concept ensures residents have access to all necessary services within the community.
For those seeking emerging opportunities, Duqm and Salalah present attractive options with lower entry prices and significant growth potential. These locations appeal to investors seeking value appreciation and those interested in holiday homes or rental properties in developing tourism areas.
Which areas in Oman are best for rental yields, and what are the typical returns by property type?
Rental yields in Oman vary significantly by location and property type, with certain areas offering attractive returns for investment-focused buyers.
| Area | Property Type | Typical Yield |
|---|---|---|
| Muscat ITCs (Al Mouj, Muscat Bay) | Apartments | 3-5% |
| Muscat ITCs | Villas | 3-5% |
| Duqm | Apartments | 6-7% |
| Salalah | Mixed Properties | 6%+ |
| Oman Average | All Types | 7% |
| Suburban Muscat | Apartments | 5-7% |
Muscat's premium ITCs like Al Mouj and Muscat Bay generate solid yields of 3-5% for both apartments and villas. While these yields are moderate, they come with high-quality tenants and strong rental demand from expatriate professionals. Rental rates in these top areas have increased 10-20% over the past 18 months, reflecting growing demand.
Duqm presents the highest yield potential at 6-7% for apartments, driven by industrial and port development attracting workers who need accommodation. This emerging area offers the best combination of yield and capital appreciation potential for investors willing to invest in developing locations.
Salalah offers yields of 6%+ and appeals to investors seeking exposure to Oman's growing tourism sector. The city's role as a summer destination for Gulf residents creates seasonal rental demand alongside year-round residential needs.
It's something we develop in our Oman property pack.
What is the current demand for rental properties in Oman, and how does it differ between apartments, villas, and commercial units?
Rental demand in Oman remains strong across residential categories, driven by a growing expatriate population and urbanization trends.
Apartments dominate rental demand, particularly 1-3 bedroom units in urban centers and ITCs. This segment benefits from the highest occupancy rates and attracts young professionals, small families, and expatriate workers seeking modern, well-located accommodations with amenities.
Villas appeal to a more selective market, primarily targeting families and higher-income tenants who prefer privacy and space. Suburban gated communities and ITC villas command premium rents but may experience longer vacancy periods between tenants compared to apartments.
The rental market shows particularly strong demand in quality mid-market apartments, as Oman's growing expat population seeks accommodations that balance affordability with modern standards. Properties with amenities like gyms, pools, and security services are especially sought after.
Commercial units face more varied demand patterns, with office and retail space concentrated in Muscat and Duqm. Returns vary significantly based on location, with prime commercial locations commanding higher rents but requiring larger investments.
Overall rental demand remains robust, supported by economic diversification bringing more international businesses and workers to Oman, creating sustained need for quality residential options.
What are the resale prospects in different parts of Oman, and which property types hold their value best?
Resale prospects in Oman vary considerably by location and property type, with prime Muscat neighborhoods offering the strongest liquidity and value retention.
Prime Muscat neighborhoods and ITCs provide the best resale prospects, with villas and luxury apartments showing the strongest value retention and market liquidity. These properties benefit from consistent demand from both owner-occupiers and investors, making them easier to sell when needed.
Al Mouj, Muscat Bay, and other established ITCs hold their value best due to their integrated amenities, professional management, and appeal to international buyers. The freehold ownership available in these developments adds to their resale attractiveness.
In secondary cities like Duqm and Salalah, resale prospects depend heavily on ongoing infrastructure development and tourism growth. Early investments in well-located properties may benefit from significant appreciation, but market depth remains limited compared to Muscat.
Luxury properties generally hold their value better than entry-level options, as they appeal to a more affluent buyer pool with greater purchasing flexibility. However, this market segment is smaller and may require longer selling periods.
Properties with unique features like waterfront access, golf course views, or within prestigious developments tend to maintain stronger resale values and attract premium buyers even during market downturns.
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 do taxes, fees, and legal restrictions affect property purchases for foreign buyers in Oman?
Foreign property ownership in Oman operates under clear but specific regulations that affect where and how international buyers can purchase real estate.
Foreigners can buy property with full ownership rights in ITCs and certain approved zones, providing genuine ownership rather than leasehold arrangements. Outside these designated areas, ownership restrictions apply, limiting foreign buyers to approved developments.
The tax environment is relatively favorable, with no property taxes or capital gains taxes levied on real estate transactions. The main cost is a standard 3% transfer fee paid during property purchases, making the overall tax burden lighter than many international markets.
Minimum investment requirements apply to foreign buyers, with OMR 45,000 needed for purchases in ITCs and OMR 250,000+ required for residency-linked property investments. These thresholds ensure foreign investment contributes meaningfully to the economy.
Important legal restrictions include building requirements on land purchases, where buyers must complete construction within four years or risk property forfeiture. This rule prevents speculation and ensures productive use of land resources.
The legal framework is generally clear and enforceable, with property rights well-protected under Omani law. Foreign buyers benefit from straightforward ownership structures and transparent transaction processes in approved zones.
What is the minimum realistic budget required to buy in each major area, and what does that buy you in terms of size and property type?
Budget requirements vary significantly across Oman's major property markets, with entry points available for different investment levels.
| Area | Minimum Budget | What You Get |
|---|---|---|
| Muscat (Budget Areas) | OMR 30,000 | Small apartment, older building, basic amenities |
| Muscat (Standard) | OMR 60,000-100,000 | 1-2BR apartment, modern building, good location |
| Muscat ITCs | OMR 45,000-80,000 | Studio/1BR apartment, resort amenities |
| Al Mouj/Muscat Bay | OMR 120,000-200,000 | 2-3BR apartment, premium amenities, waterfront |
| Luxury Villas (Muscat) | OMR 200,000-500,000 | 3-5BR villa, private garden, gated community |
| Duqm/Salalah | OMR 25,000-50,000 | 1-2BR apartment or townhouse, emerging area |
In Muscat's budget areas, OMR 30,000 provides access to basic apartments suitable for rental investment or first-time buyers. These properties typically offer smaller spaces in older buildings but provide entry into the capital's property market.
Premier ITCs require OMR 45,000 minimum for entry-level small apartments, meeting foreign ownership requirements while providing access to resort-style amenities including pools, gyms, and security services.
Villa purchases generally start at OMR 200,000 in Muscat, providing 3-bedroom homes with private gardens in residential communities. Luxury villas in premium locations can reach OMR 500,000+ with extensive amenities and prime locations.
Emerging areas like Duqm and Salalah offer the lowest entry points, with quality apartments and townhouses available from OMR 25,000-50,000, appealing to investors seeking value appreciation in developing markets.
How do financing and mortgage options in Oman compare for locals versus foreigners?
Financing options in Oman differ significantly between local and foreign buyers, with locals enjoying more favorable terms and higher loan-to-value ratios.
Local buyers can access up to 80% loan-to-value financing with 25-year repayment terms and interest rates around 5-6%. These favorable conditions reflect banks' comfort with local borrowers and their understanding of domestic income patterns and employment stability.
Foreign buyers face more restrictive financing terms, typically receiving 50-70% LTV with shorter 15-year terms and interest rates of 4-6%. Banks require 30-50% down payments, reflecting higher perceived risk and limited ability to assess foreign income sources.
Residency status significantly affects financing availability for foreigners. Residents with local employment can access better terms than non-residents, who may struggle to obtain local financing and often rely on cash purchases or financing from their home countries.
Non-resident foreign buyers frequently choose cash purchases to avoid financing complications, especially in the ITC market where properties often serve as investment or holiday homes rather than primary residences requiring mortgage financing.
Banks typically require comprehensive income verification, employment letters, and bank statements from foreign applicants, making the approval process longer and more complex than for local buyers.
It's something we develop in our Oman property pack.
If buying now, where and what type of property makes the most sense depending on the goal—living, renting out, or reselling?
The optimal property choice in Oman depends heavily on your primary objective, with different areas and property types suited to specific investment or lifestyle goals.
For residential living, Muscat's ITCs including Al Mouj, Muscat Bay, and similar developments offer the best combination of lifestyle, infrastructure, and expat-friendly services. These communities provide international school access, healthcare facilities, recreational amenities, and social environments that ease the transition for foreign residents.
Rental yield optimization favors mid-range apartments in Muscat or emerging areas like Duqm. These properties offer the highest occupancy rates and returns, appealing to the broad expatriate workforce seeking quality accommodation. Focus on 1-3 bedroom apartments with modern amenities in areas with good transport links.
For resale potential, early investment in developments with strong government backing presents the best opportunities. Sultan Haitham City, Duqm Special Economic Zone, and coastal tourism hubs offer the potential for significant appreciation as infrastructure develops and areas mature.
Quality and amenities should be prioritized regardless of investment objective, as properties with pools, gyms, security, and professional management consistently outperform basic alternatives in all market conditions.
Diversification across property types and locations can optimize risk-adjusted returns, combining stable ITCs properties with higher-growth emerging area investments to balance income and appreciation potential.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Oman's property market offers compelling opportunities for both investors and residents, with clear regulations, reasonable entry points, and steady growth prospects.
Success depends on choosing the right location and property type aligned with your specific goals, whether seeking lifestyle benefits, rental income, or capital appreciation in this stable Gulf market.
Sources
- Arab News - Oman Business Economy Report
- Properstar - Oman House Prices
- Sands of Wealth - Oman Price Forecasts
- Sands of Wealth - Muscat Property Guide
- Global Property Guide - Middle East Rent Yields
- Oman Property Investment - Mortgages Guide
- Sands of Wealth - Moving to Oman Property Guide
- Crown Continental - Foreign Property Financing
- Global Property Guide - Oman Square Meter Prices
- IRE Oman - Best Investment Cities 2025