The Sultanate of Oman is set to deliver 62,800 new residential real estate units by 2030, with 5,500 coming to market this year in line with the country’s strategic vision, according to new insight from Cavendish Maxwell.
The report reveals that Oman is also set to add 5,800 hotel rooms to its current inventory over the next five years, with 35 new hotels and resorts scheduled to open by 2030. The new rooms will boost the current inventory by around 25 percent.
80,000 new homes to be delivered by 2040
Oman’s residential real estate inventory grew by 3.6 percent in 2024, with 38,400 new homes delivered, taking the current supply to around 1.1 million units, the report shows. Most of the residential supply is in Muscat, followed by Al Batinah North and South, and Dhofar.
Expansion of the real estate, infrastructure, hospitality and tourism sectors is part of the Oman Vision 2040, which aims for non-oil sectors to account for 90 percent of the economy by 2040. By then, Oman’s population, currently 5.3 million, is expected to reach 7.7 million, driven by increasing numbers of both Omani nationals and expatriates.
More than 80,000 new homes are projected to be delivered between now and 2040.
“Vision 2040 is not just a plan – it’s a commitment to a sustainable, knowledge-driven, globally competitive future. As the country moves forward with the 2040 agenda, stimulating investment in the real estate sector will be of increasing importance. Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience, while at the same time supporting national development priorities. However, given the possibility of demand outpacing supply, proactive planning will be essential in avoiding a potential shortfall,” stated Khalil Al Zadjali, Head of Oman at Cavendish Maxwell.
Increased population to limit future supply
However, Oman’s rapid population growth could mean a shortfall in residential property supply in the future, despite tens of thousands of new properties in the pipeline, says Cavendish Maxwell, which predicts that another 340,000 new homes would be needed to support a sustainable 90 percent occupancy rate.
Occupancy rates in Oman’s residential real estate sector remain stable, averaging 85.2 percent across all units. Villas and Arabic houses maintain a slightly stronger rate of 87.5 percent, compared to apartments at 80.8 percent. Apartment occupancy levels rose 3 percent in 2024, compared to the previous year.
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Branded residences emerge
Branded residences are making their mark in Oman’s real estate sector, catering to investors and end-users seeking premium living in high-end properties. Sales prices vary depending on brand and location. Current options include La Vie by Tivoli Hotels and Residences, where prices range from OMR1,300 to 1,500/sq metre; St. Regis by Marriott, at OMR2,100 to 2,400; and Mandarin Oriental-branded residences at OMR2,400 to 2,600.
Integrated Tourism Complexes (ITCs) are also set to play a pivotal role in shaping Oman’s future, as, unlike anywhere else in the country, they allow non-Omani nationals to own a freehold property and offer more affordable prices than other key parts of the GCC, with similar rental yields. In line with Vision 2040, ITCs aim to strengthen the economy and diversify the real estate sector.
Several ITCs are under development in key locations like Muscat, Dhofar, South Al Batinah, South Al Sharqiyah and Musandam.
