Oman Commercial Real Estate Market Size
| Study Period: | 2019-2028 |
| CAGR: | > 11.5 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oman Commercial Real Estate Market Analysis
The size of Oman commercial real estate market is USD 8.2 billion in the current year and is anticipated to register a CAGR of over 11.5% during the forecast period.
- COVID-19 had severely impacted the Oman commercial real estate sector, as the office sector in Muscat experienced declined demand due to pandemic restrictions. However, despite the disruption, the market has recovered from 2021 to 2022.
- The commercial real estate market is experiencing significant growth, such as potential growth of the hospitality and travel sector due to relaxed restrictions and vaccine roll-out, the development of traditional office space dedicated to startups and new companies, and the introduction of new co-working spaces in the Sultanate.
- Under Vision 2040, the Omani government is inviting more investment flows into the commercial real estate sector. Furthermore, investment opportunities are growing in the hospitality and industrial sector and attracting developers with tax breaks, reduced rent, fast‑tracked licenses, and duty waivers.
- In addition, The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) initiated a program with more than 50 different investment opportunities in May 2021 to attract investments worth USD 520 Million into the industrial sector. This initiative further accelerates countries' economies with an increase in GDP.
- Furthermore, Oman’s Public Establishment for Industrial Estates (Madyan) is planning six new industrial cities to develop 50 million square meters of new acreage for industrial investment under Vision 2040. These new clusters are coming up at Mahas, Ibri, Shinas, Marmul, Thamrait, and Al Mudhaibi.
Oman Commercial Real Estate Industry Segmentation
Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The Commercial Real Estate Market in Oman is segmented by Type (Offices, Retail, Industrial, Logistics, Multi-family, and Hospitality) and by Key Cities (Muscat, Sohar, and Dhofar). The report offers the market sizes and forecasts for the commercial real estate market in Oman in value (USD billion) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality |
| By Key Cities | |
| Muscat | |
| Dhofar | |
| Dhofar |
Oman Commercial Real Estate Market Trends
This section covers the major market trends shaping the Oman Commercial Real Estate Market according to our research experts:
The Hospitality Sector Witnessing Lucrative Growth
The hospitality sector was the worst hit by the pandemic due to the implementation of COVID-19 protocols such as travel restrictions and social distancing. Now the sector is in the recovery phase but has not reached the pre-pandemic levels.
Moreover, to attract new investments into the sector, the Oman Investment Authority (OIA) announced the restructuring of its tourism and real estate investments in the Sultanate by transferring them to the Oman Tourism Development Company (OMRAN Group), now a subsidy of OIA. This program aims at developing the tourism sector, enhancing management in tourism and hospitality real estate investments, aligning with the vision 2040 plan, and achieving economic diversification as well as integration with the private sector.
In addition, the sector experienced significant growth, as hotels in Oman generated revenue of more than OMR 101.66 million (USD 264 million) in 2021 growing at a rate of 19.2% compared to 2020, and the number of guests staying in 3 to 5-star hotels increased by 43.2%, to approximately 1.219 million. According to National Centre for Statistics and Information (NCSI), the occupancy rates of hotels went up by 44.9% in 2021 due to an increase in the number of guests.
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The Industrial Sector Gaining Strength in the Country
The industrial sector was affected by the pandemic, but now the sector is in the recovery phase. According to National Centre for Statistics and Information (NCSI), the contribution of the industrial sector in the first nine months of 2021 accounted for OMR 2 billion (USD 5.2 billion) to the total GDP.
The industrial real estate sector is driven by increasing foreign direct investments (FDIs) into the sector. In 2021, more than OMR 1.48 billion (USD 3.85 billion) in direct investments were made in the industrial sector. Furthermore, the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) announced the facilitation of enhancing the investment environment with automatic licensing, reduction in licensing fees, and investors’ residence program of five- and ten-year duration.
According to the Ministry of Commerce and Industry in Oman, the number of commercial registrations is experiencing significant growth. However, registrations slightly declined in Q1 2021 by 15%. In addition, most of the registrations are from limited liability companies and individual firms.
Oman Commercial Real Estate Industry Overview
The Omani commercial real estate market is fragmented due to the presence of a large number of players in the market. Some of the major players in the market include Al Taher Group, BBH GROUP, OMRAN Group, Malik Developments, and Shanfari Group. The country is witnessing significant investment opportunities backed by non-oil economic growth, especially in the industrial sector, which presents growth opportunities for more players to enter the market during the forecast period.
Oman Commercial Real Estate Market Leaders
BBH Group
Omran Group
Malik Developments
Al-Taher Group
Shanfari Group
*Disclaimer: Major Players sorted in no particular order
Oman Commercial Real Estate Market News
- October 2022: By the end of August 2022, the State of Oman had completed over OMR 192 million (USD 499 Million) in real estate transactions and issued over 22,000 title deeds during the same period. This includes OMR 107 million (USD 278 million) in mortgages, OMR 82 million (USD 213 million) in purchase contracts, and OMR 47 million (USD 122 million) in swap agreements.
- January 2022: Omran Group (Oman Tourism Development Company) has entered a development partnership with Diamond Real Estate Development Company (a major real estate development company) to develop the first phase of the integrated Yiti Tourism Project, with an investment value of more than USD 1 Billion. This project will set new standards for natural beauty and urban living as per the best practices of sustainability.
Oman Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunities
4.3 Supply Chain / Value Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Offices
5.1.2 Retail
5.1.3 Industrial
5.1.4 Logistics
5.1.5 Multi-family
5.1.6 Hospitality
5.2 By Key Cities
5.2.1 Muscat
5.2.2 Dhofar
5.2.3 Dhofar
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 BBH Group
6.2.2 Omran Group
6.2.3 Shanfari Group
6.2.4 Al-Taher Group
6.2.5 Malik Developments
6.2.6 Hamptons International & Partners LLC
6.2.7 WUJHA
6.2.8 Diamonds Real Estate
6.2.9 Al Tamman Real Estate
6.2.10 Alfardan Group
6.2.11 Al Osool Group
6.2.12 Hilal Properties*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
Oman Commercial Real Estate Market Research FAQs
What is the study period of this market?
The Oman Commercial Real Estate Market is studied from 2019 - 2028.
What is the growth rate of Oman Commercial Real Estate Market?
The Oman Commercial Real Estate Market is growing at a CAGR of >11.5% over the next 5 years.
Who are the key players in Oman Commercial Real Estate Market?
BBH Group, Omran Group, Malik Developments, Al-Taher Group, Shanfari Group are the major companies operating in Oman Commercial Real Estate Market.
Oman Commercial Real Estate Industry Report
Statistics for the 2023 Oman Commercial Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oman Commercial Real Estate analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Oman Commercial Real Estate Report Snapshots
