Oman’s real estate sector is anticipating continued strong demand. This is due to a shift in trends that indicate investors are paying closer attention to Omani real estate.
Since the third quarter of the previous year, Oman’s real estate market has experienced a resurgence. This has been supported by a strong structural base and an increase in demand, after the pandemic depressed demand.
The Omani government's new ownership plan, which permits foreigners to buy properties outside of integrated tourist complexes (ITC) is an important implementation. Together with a wide range of initiatives and actions, this is anticipated to draw capital investments in the real estate market.
Positive investor sentiment is also being sustained within Oman’s real estate market. This is largely due to the steps being taken to further strengthen the regulatory environment. This in particular is in terms of implementing more flexible legislation and laws. Actions as such aim to increase the productivity of institutions associated with the government and to enhance the business environment with the ambition of obtaining more foreign direct investment (FDI).
For instance, the Ministry of Heritage and Tourism amended its hotel development requirements in August after introducing them in November 2021. The rule aims to uphold standards and encourage national tourist growth.
FOCUSING ON AFFORDABLE HOUSING
The affordability and accessibility of housing are an important focus for the Omani government. Led by the advocacy of ‘Housing for All Citizens’, demand for affordable properties in Oman has increased. Thus creating a greater and stronger level of liquidity within Oman’s real estate market.
Plans to construct five new developments were drawn up late last year by Oman’s Ministry of Housing and Urban Planning. This is following the success of its first private-public partnership (PPP) based, Integrated Housing Development project in Barka. The new developments are expected to contain a total of 4,800 properties and accommodate approximately 24,000 people. These new developments are set to be constructed in the governates of Musandam, Dhofar, South Al Sharqiyah, North Al Sharqiyah, North Al Batinah, and South Al Batinah.
PROJECTED GROWTH OF OMAN’S RESIDENTIAL REAL ESTATE MARKET
The residential real estate market in Oman is anticipated to develop at a compound annual growth rate (CAGR) of more than 13% from 2022 to 2027. This is according to a report by the market intelligence and advisory company, Mordor Intelligence.