 December 2024: Reviewing My Oman Investment As 2024 comes to an end, I’m taking a closer look at how my 1-bedroom studio apartment in Hawana Salalah, Oman is performing. With property prices reportedly rising, I’m evaluating my ROI from both rental income (day-to-day operations) and capital gains (how much I could sell it for). Operational ROI: I purchased the studio apartment in 2019 for USD 110,000, and here’s how it’s been performing operationally in 2024:
This translates to a Gross ROI of around 22%, which I’m genuinely happy with. That’s much more than I ever imagined. After factoring in all operational expenses, my Net ROI lands between 8-12%. For those interested in short-term rentals, this shows how properties in Salalah can be a steady income generator. Valuation Update: The Hawana Salalah real estate market has steadily grown, attracting more international buyers and tourists. Determined to get accurate and up-to-date information, I went the extra mile to understand current prices. I dug deep into various market reports, reached out to multiple local agents, and contacted the destination's representatives directly to make sure I had reliable data. Here’s how the average price per square meter (USD) has changed over the years:
In 2019, I purchased the apartment for USD 110,000, with a size of 54.1 square meters and an average price of USD 2,034 per sqm. Fast forward to 2024, with the average price rising to USD 3,360 per sqm, the current estimated value of my apartment is approximately USD 181,776. This represents a Capital ROI of 65.25%, meaning the apartment’s value has increased by an impressive 65.25% over five years, solely from capital appreciation. Should I Sell? Operationally, there’s potential to increase annual revenue to $30,000 (up from the current $24,000 per year I’m generating). But doing so would require additional effort—like offering more personalized guest experiences and closer coordination with my co-host. While feasible, it involves a time commitment I’m not sure I want to make long-term since I have so many other dreams and projects. Still, for someone committed to the operations, a $20,000-$30,000 annual income is easily attainable from a property like this. On the other hand, the current market valuation makes selling an attractive option. The impressive 2024 price increase hints at strong momentum, but how long will it last? It’s tempting to lock in gains now while reinvesting elsewhere. My goal is also to diversify my investments and reduce geopolitical risks. But to understand the upside potential of a city like Salalah, I thought it makes sense to make a global comparison: Hawana Salalah compared to other cities When compared to major global cities, Hawana Salalah still offers impressive value for money and significant growth potential. From this perspective, it might be wise to hold onto the property for now.
Hawana Salalah offers a mix of luxury, stability, and strong growth potential. With rising demand, expanding tourism, and ongoing development, it’s a market full of opportunities. Investors can enjoy high rental yields and increasing property values, making it a great time to buy, rent, or sell. If you’re interested in this market or if you have any questions, feel free to reach out - I’m happy to share my insights. Email: [email protected]
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