- Oman’s real estate market is experiencing growth driven by optimistic economic prospects, with GDP expected to reach 2.7% by the end of 2024, supported by government initiatives and improved market dynamics.
- Residential demand in Muscat, particularly for luxury waterfront properties, is on the rise, with modern high-end residences featuring amenities like landscaped gardens and gyms being particularly popular.
- The Greater Muscat Structure Plan 2040 focuses on smart city developments, sustainable infrastructure, and key projects like Sultan Haitham City and The Sustainable City – Yiti.
- Real estate activity in the first half of 2024 saw peak property sales and mortgage contracts, reflecting the sector’s dynamic performance and continued growth potential.
Oman’s real estate market is witnessing significant growth, according to the recent ‘Oman – H1 2024 Market Overview’ report released by Hamptons International Oman. Supported by an optimistic economic outlook, the sector continues to expand, fueled by both government initiatives and shifting market dynamics.
The projected GDP growth for 2024, targeted at 2.1 percent, marks an improvement from the 1.6 percent growth recorded in 2023. Additionally, the International Monetary Fund (IMF) anticipates a more robust GDP growth of 2.7 percent by the end of 2024, indicating a recovery from previous economic slowdowns and reinforcing the positive momentum in the real estate sector.
Rising Demand in Muscat’s Residential Market
The demand for residential properties in Muscat has seen a substantial increase, with particular emphasis on luxury waterfront properties. This trend is driving the overall growth of the residential market.
The segment is expected to grow at an annual rate of 3.7 percent from 2024 to 2029, potentially reaching a market volume of $358 billion by the end of the period. Modern, high-end residences featuring luxurious amenities like landscaped gardens, swimming pools, and state-of-the-art gyms are becoming increasingly popular among buyers.
Locations near commercial and retail hubs, such as Al Khuwair and Al Ghubra, are particularly sought after, reflecting a shift toward convenience and lifestyle preferences.
Key Drivers of Growth in Oman’s Real Estate Market
Several factors are contributing to the growth of the real estate sector in Oman. Government initiatives aimed at attracting foreign investment play a crucial role. Policies such as easing property ownership laws for non-Omanis and offering tax incentives for developers have been pivotal in boosting investor interest.
Additionally, substantial investments in infrastructure projects, including the construction of new roads and airports, have enhanced the market’s appeal.
Oman’s stable political environment and efforts to diversify the economy away from oil dependency have attracted both domestic and international investors. The country’s strategic focus on economic diversification has led to increased investment in sectors like tourism, logistics, and technology.
These efforts align with the nation’s long-term economic goals and support the growing demand for real estate. Low interest rates and favorable mortgage terms have further contributed to making property ownership more accessible, leading to increased activity in the market.
The Impact of the Greater Muscat Structure Plan 2040
The Greater Muscat Structure Plan 2040 is a cornerstone of Oman’s real estate development strategy. This ambitious plan emphasizes economic diversification, smart city developments, and sustainable infrastructure.
Key projects under this plan include Sultan Haitham City and The Sustainable City – Yiti, which are designed to incorporate modern technology and environmentally friendly practices.
The Greater Muscat Plan also aims to address challenges such as the adaptability of older buildings and land availability, particularly in central areas like Ruwi, which is gradually transforming into a logistics and industrial hub.
By integrating advanced public services, recreational spaces, and modern infrastructure, the plan sets a clear vision for Muscat’s future growth.
Demographic Shifts and New Developments in Muscat
Demographic changes in Muscat are shaping real estate trends as well. The National Centre for Statistics & Information (NCSI) projects notable population growth in the capital, leading to shifts in housing demand.
Traditional areas like Ruwi and Al Qurum are seeing a decline in popularity, while growth is more pronounced in western neighborhoods such as Al Ghubra, Al Khuwair, and Airport Heights. These areas are witnessing the rise of new mixed-use developments, residential complexes, corporate headquarters, shopping centers, and hospitality venues.
As urban development extends further west, areas like Al Mabellah are earmarked for large-scale projects, including the vast undeveloped lands allocated for Sultan Haitham City.
Strong Performance in H1 2024 Real Estate Activity
The first half of 2024 has been marked by robust activity in Oman’s real estate sector. Property sales reached a peak in May, with 6,638 contracts signed, while mortgage contracts also surged to 2,114 i.e. the highest figures recorded this year.
These numbers underscore the dynamic nature of the market, driven by a combination of strategic government policies and evolving urban landscapes.
Oman’s real estate sector is positioned for sustained growth, supported by a favourable economic environment, strategic government initiatives, and evolving market preferences.
The expansion of modern, luxury residential properties, coupled with infrastructure development and demographic shifts, is reshaping the country’s real estate landscape. As Oman continues to implement its long-term vision through initiatives like the Greater Muscat Structure Plan 2040, the future of the real estate market appears promising, driven by a blend of innovation, investment, and strategic planning.
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Last Updated on August 24, 2024 by Safiya K
