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Residential Real Estate Market in Oman is segmented by Type (condominiums,villas and others), Key Cities And Other Urban, Suburban And Rural Markets.
Oman’s economic and financial situation is causing a sharp decline in the demand and supply of the property market. Oman’s real estate market showed slow growth in 2018, but there were improvements in certain areas. Real estate transactions increased by 1.2 percent compared to 2017, although sales contracts decreased by a percentage point.
In the residential sector, prices continued to decrease as demand remained subdued overall. A combination of factors, including readjustment of salaries and job losses in key sectors, as well as new project handovers, continue to impact the demand.
Government initiatives like The National Program for Enhancing Economic Diversification (Tanfeedh) and the establishment of new industrial estates offering investors tax exemptions and competitive advantages on imports and customs duties could provide the necessary growth to the sector. The government’s target of attracting 21 Million tourists by 2035, up from 8 Million in 2015, as part of efforts to diversify the economy means that prospects for the segment continue to be strong, with developers breaking ground or nearing completion of several new projects.
Rents and prices in Muscat’s residential property market are declining further as the market continues to be oversupplied with apartment blocks. The demand-supply imbalance will continue to remain significant provided the volume of new units coming on stream continues to surpass demand, although the pace of growth of this gap is slowing down. Housing demand is moving towards more affordable units, causing a stronger rental decline in premium locations.
There is sustainable demand in the estate market in the Sultanate due to the young population structure, which makes the demand for housing rise, especially in the Muscat.
The report provides key Insights into Oman’s Residential Real Estate market. It focuses on the market dynamics, technological trends and government initiatives taken in the residential real estate sector. Also, the report sheds a light on the key trends in the market like factors driving the market what are the restraints to market growth and opportunities going forward. Additionally, the competitive landscape of the residential real estate market of Oman is depicted through the profiles of key players active.
|By Key Cities|
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As per the official sources, the occupancy rate of residential buildings in the Muscat stand at 70 per cent and as low as 50 per cent in areas outside the capital, the lowest recorded in the Sultanate’s history.
Oman’s Building Permits was reported at 23,881.000 Unit in 2018. The number of residential building permits, in all of Oman, has declined by 1.1% to 23,881in 2018 from 24,149 in 2017 and 31,868 in 2016. That’s down from an average of 31,000 units in 2011-16, but up from an annual average of 15,000 units in 2007-10 and 7,000 units in 2002-06. The residential building permits averaged to 12,252.500 Unit from Dec 1997 to 2018.
According to official Omani source the sultanate’s Ministry of Housing had allotted 10,925 residential plots across the country by the end of May 2019.
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Overseas migrants have been integral to the development of the Omani economy and infrastructure. The Ministry of Manpower first introduced the expatriate visa ban in January 2018, to reduce the number of unemployed locals as part of the Omanization project. The ban has been extended several times since. As of March 2019, about 55,000 expats who previously worked in Oman have been laid off by companies, based on government estimates.
Due to the drop in the number of expats who rent out property the market is declining in rental and investments. As per calculations, the drop is quite substantial too, with the numbers standing as low as 2.03 M people in May 2019 when compared with the 2.09 M people from May 2018.
In the short to medium term, the outflow of skilled foreigners and the inflow of unskilled foreigners will continue to put downward pressure on residential rents.
However, it is not just expatriates shifting away from higher-end properties. Although young, middle-class Omanis prefer living in traditional villas, they are sometimes too expensive. As this demographic group starts families, their budget constraints will lead to an increase in the demand for more affordable housing, such as apartments.
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The Oman Residential real estate is fragmented due to the presence of a large number of players in the market. Strong demand for already constructed better-designed houses was recorded from the traditional Omani’s in the year as people do not seek to involve themselves in the purchase of land and construction of the houses. The market in the Sultanate is still absorbing new projects that are in line with the aspirations of modern housing seekers who want to invest in the estate sector, which is the focus of the company in launching and marketing new projects, entertainment and thus stability for residents. It is very much a buyer’s market now demand is largely down across the board and supply is up, exacerbating price pressures. Key players in Oman residential real estate are Al Mouj Muscat, Majan Development Company, AlRaid Group, and WUJHA Real Estate.
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
4.3 Government Initatives, Regulatory Aspects for Residential Real Estate Sector
4.4 Insights on size of real estate lending and loan to value trends
4.5 Insights on interest rate regime for general economy, and real estate lending
4.6 Insights on rental yields in residential real estate segment
4.7 Insights on captial market penetration and REIT presence in residential real estate
4.8 Insights on affordable housing support provided by government and public-private partnerships
4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
4.10 Market Dynamics
5. Market Segmentation
5.1 By Type
5.2 By Key Cities
6. Competitve Landscape
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Al Mouj Muscat
6.2.2 Majan Development Company
6.2.3 Al Raid Group
6.2.4 Wujha Real Estate
6.2.5 Al-Taher Group
6.2.6 Maysan Properties Sac
6.2.7 Orascom Development Holding AG
6.2.8 Harbor Real Estate
6.2.9 Edara Real Estate Llc
7. Future of the Market and Analyst Recommendations
8. Investment Analysis of the Market
10. About Us