Oman’s real estate market has witnessed a remarkable surge in demand, with real estate transactions surpassing OMR2.6 billion ($6.7 billion) by the end of December 2023. Despite fluctuations in the sales segment, the rental sector has emerged as a key driver of growth, reflecting shifting trends in the sultanate’s real estate landscape.
Sector dynamics
According to data from the National Center for Statistics and Information (NCSI), the value of lease contracts experienced a notable uptick, rising by 18.3 percent to OMR1.55 billion. This surge in rental transactions indicates a strong demand for residential and commercial properties in Oman’s real estate market.
While Oman’s rental sector thrived, the sales segment witnessed a slight decline. Both the value and number of sale contracts decreased by 7.7 percent and 4.3 percent, respectively. Despite this dip, Oman’s real estate market remains robust, supported by ongoing infrastructure development projects and government initiatives.
Ownership deeds
The number of ownership deeds recorded by the end of 2023 reached 235,390, marking a modest increase of 0.9 percent. The NCSI also notes the significant growth in ownership deeds granted to GCC citizens, which surged by 48.9 percent reaching 1,316. This increase in ownership deeds granted to GCC citizens highlights the attractiveness of Oman’s real estate market to regional investors.
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Government initiatives
Oman’s government continues to implement measures to bolster the real estate sector and attract investment, including regulatory reforms and infrastructure development projects. Urban planning takes center stage with initiatives like the Greater Muscat City structural plan and plans for major centers like Greater Sohar and Salalah. Moreover, future cities like Sultan Haitham City and Al Jabal Al Akhdar also signal Oman’s growing interest in supporting development projects.
With a strategic focus on sustainable urban development and enhancing the overall quality of life, Oman is poised to sustain its momentum in the real estate market and capitalize on emerging opportunities in the years ahead.
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