Oman's Real Estate - Opportunities Await!
1. Residential Real Estate:
The Omani residential real estate market has historically seen demand for both apartments and single-family homes. The government has made efforts to address housing shortages and improve affordability through various initiatives, including subsidies for first-time homebuyers and the development of affordable housing projects.
2. Commercial Real Estate:
The commercial real estate sector in Oman includes office spaces, retail properties, hospitality establishments, and industrial facilities. The capital city, Muscat, has been a focal point for office space demand due to its role as the country's business hub. The retail sector has been evolving, with modern shopping malls gaining popularity. The hospitality industry has shown potential due to Oman's efforts to promote tourism.
3. Tourism and Hospitality:
Oman has been working to diversify its economy and promote tourism as a key sector. This has led to investments in hospitality infrastructure, including luxury resorts and accommodations, to attract international tourists.
4. Infrastructure Development:
Oman has been investing in infrastructure projects such as transportation networks, including roads and airports, to improve connectivity within the country and enhance its appeal to foreign investors.
5. Foreign Investment:
Oman has actively sought foreign investment to stimulate economic growth, including in the real estate sector. Certain areas have been designated as special economic zones to encourage foreign businesses to set up operations.
6. Challenges:
There were challenges faced by the Omani real estate sector. These included concerns about oversupply in certain property segments, regulatory complexities, and issues related to land ownership and property titles.
7. Future Outlook:
Oman's real estate sector was expected to be influenced by various factors, including economic diversification efforts, infrastructure projects, and government policies aimed at attracting foreign investment.
The Omani residential real estate market has historically seen demand for both apartments and single-family homes. The government has made efforts to address housing shortages and improve affordability through various initiatives, including subsidies for first-time homebuyers and the development of affordable housing projects.
2. Commercial Real Estate:
The commercial real estate sector in Oman includes office spaces, retail properties, hospitality establishments, and industrial facilities. The capital city, Muscat, has been a focal point for office space demand due to its role as the country's business hub. The retail sector has been evolving, with modern shopping malls gaining popularity. The hospitality industry has shown potential due to Oman's efforts to promote tourism.
3. Tourism and Hospitality:
Oman has been working to diversify its economy and promote tourism as a key sector. This has led to investments in hospitality infrastructure, including luxury resorts and accommodations, to attract international tourists.
4. Infrastructure Development:
Oman has been investing in infrastructure projects such as transportation networks, including roads and airports, to improve connectivity within the country and enhance its appeal to foreign investors.
5. Foreign Investment:
Oman has actively sought foreign investment to stimulate economic growth, including in the real estate sector. Certain areas have been designated as special economic zones to encourage foreign businesses to set up operations.
6. Challenges:
There were challenges faced by the Omani real estate sector. These included concerns about oversupply in certain property segments, regulatory complexities, and issues related to land ownership and property titles.
7. Future Outlook:
Oman's real estate sector was expected to be influenced by various factors, including economic diversification efforts, infrastructure projects, and government policies aimed at attracting foreign investment.
The Oman Residential Real Estate Market is expected to register a CAGR (Compound Annual Growth Rate) of over 13% during the forecast period (2022-2028). The size of Oman Residential Real Estate Market is USD 5.9 billion in 2023.
Key Market Players:
Sentiment 2023:
In 2020, Oman's real estate industry was impacted by the COVID-19 pandemic, which resulted in slower economic growth. The residential sector was particularly affected, with a surplus of new constructions causing rental and sale prices to decrease. Based on present data, it appears that there is a significant and increasing disparity between supply and demand. Several of the residential properties constructed in the last few years have been inadequately evaluated concerning their location, layout, standard, and/or intended demographic.
The expat community has seen a stabilization in their population in recent months, however, there remains a possibility of further decrease in numbers due to the long-lasting economic impacts of the pandemic and the increased emphasis on Omanization of the workforce, particularly in white-collar industries.
During the past year and a half, there has been a decrease in average apartment rental values by 10-15%, and average villa rental values have decreased by 15-25% as tenants have become more budget-conscious and prioritized getting good value for their money.
If you are interested in Omani Real Estate please get in touch with me.
Key Market Players:
- Al Mouj Muscat
- Al Raid Group
- Wujha Real Estate
- Al-Taher Group
- Maysan Properties SAOC
- Orascom Development Holding AG
- Harbor Real Estate
- Edara Real Estate LLC
- Savills
- Abu Malak Global Enterprises Muscat
- Al Madina Real Estate Company Muscat
- Better Homes
- Coldwell Banker
- Engel & Voelkers
- Hilal Properties
- Saraya Bandar Jissah
- Majan Development Company
Sentiment 2023:
In 2020, Oman's real estate industry was impacted by the COVID-19 pandemic, which resulted in slower economic growth. The residential sector was particularly affected, with a surplus of new constructions causing rental and sale prices to decrease. Based on present data, it appears that there is a significant and increasing disparity between supply and demand. Several of the residential properties constructed in the last few years have been inadequately evaluated concerning their location, layout, standard, and/or intended demographic.
The expat community has seen a stabilization in their population in recent months, however, there remains a possibility of further decrease in numbers due to the long-lasting economic impacts of the pandemic and the increased emphasis on Omanization of the workforce, particularly in white-collar industries.
During the past year and a half, there has been a decrease in average apartment rental values by 10-15%, and average villa rental values have decreased by 15-25% as tenants have become more budget-conscious and prioritized getting good value for their money.
If you are interested in Omani Real Estate please get in touch with me.