Market Trends of Oman Luxury Residential Real Estate Industry
Supply of Residential Buildings
As the demand for luxury brand housing units continues to rise, Eagle Hills Muscat, a joint venture between Eagle Hills Abu Dhabi and Ezz International, opened a new sales centre in the Sultanate of Oman. The first premium brand residences in the Sultanate of Oman and the first "Residences at Mandarin Oriental" project in the area were built to offer a five-star lifestyle. It is situated along Shati Al Qurm in Muscat's city centre. Through its harmony with the spirit of Muscat, whether in the city's overall scale or its minute details with its distinctive design, the project adds an artistic touch to the site's inherent qualities.
Despite fluctuating oil prices and the impact of the coronavirus pandemic continuing to threaten Oman's economy and real estate sector, Al Mouj Muscat stated the demand for ultra-luxury properties remains stable. The debut of the development's latest ultra-luxury gated community, Golf Beach Residences, a collection of six-bedroom villas and mansions within the integrated tourism complex, was met with "great demand," according to Arabian Business.
The 19 villas are being introduced in the Shatti District's northern sector of Golf Beach Residences, flanked on each side by the St Regis Hotel, which is set to open at the end of 2022. Murooj Lanes, an 'entry level' property, was launched in Q4 of 2020, and roughly 300 flats were sold out in 48 hours, demonstrating the significant demand for luxury residential properties.
Expatriates over the age of 23 can purchase housing units in multi-story residential and commercial buildings under the usufruct system for 99 years if they hold a valid residence permit for at least two years.
While the Omani population has continued to grow steadily, expatriate numbers started to drop gradually. The expatriate population has started to stabilize over recent months, but there is the potential for further reductions in numbers due to the long-term economic impacts of the pandemic and a growing focus on the Omanisation of the workforce, particularly for white-collar positions.
Current evidence is that there is a significant and growing supply/demand imbalance while many of the luxury residential units developed over recent years have been ill-considered in terms of location, design, quality, and/or target market. The proportion of well-considered, good-quality, as a result of the supply and demand mismatch, average rental values have been consistently declining across the city. Villas generally performed slightly better, with average reductions of 20% to 30% over the last 18 months. The more limited supply of villas/townhouses in the more exclusive locations of Shatti Al Qurum, Muscat Hills, and Al Mouj showed the most resilient performance due to restricted supply relative to good demand.
Increase of Luxury Residential Properties
The launch of Nikki Beach Resort & Spa Muscat was announced by Nikki Beach Global, a luxury hospitality brand. Along with the resort, Nikki Beach Muscat will also include homes because of a partnership with Omran Group and an adjacent beach club. The five-star hotel is scheduled to open in the autumn of 2023 and has already won awards for "Best New Hotel Construction and Design Oman" and "Best New Hotel Construction and Design Arabia" at the International Property Awards. The opening of the beach club will coincide with that of the homes.
Al Mouj Muscat is a master-planned lifestyle community, home to 8,000 residents from 85 nationalities. It has redefined urban living in the region with an impressive portfolio of oceanfront residential properties, a vibrant dining and retail district, and world-class leisure amenities. Zunairah was designed and constructed to reimagine a market-leading, ultra-premium luxury beachfront home product, offering families the opportunity to enjoy a unique and exclusive beachfront gated community, located at the edge of the ocean. The design of Zunairah was inspired by one-on-one meetings, where the designs connect with buyers and ignited their interest in the possibilities that the homes would bring. Details such as a garden suite that can be adapted, for example, an outdoor kitchen or music room or gym, reflects individual style and allows owners to customise the space to create a home to suit every aspect and stage of family life. This close contact continued throughout, including a bespoke handover ceremony for each family.
