Oman's real estate market is picking up speed and popularity. The country holds the impressive 3rd position in the Housearch residential real estate investment attractiveness index, surpassing Qatar and the UAE (Dubai). By 2029 the market is projected to expand by 1.5 times, with a robust CAGR of nearly 10%. Noteworthy players in Oman's real estate scene include Al Mouj Muscat, Majan Development Company, AlRaid Group, and Wujah Real Estate.
Trends in the Oman real estate market
In Oman, there's a notable surge in demand for off-plan properties. This trend allows buyers to acquire comfortable homes at lower prices while also providing the flexibility to customize their homes according to their preferences.
With a significant 40% expatriate population, Oman's real estate landscape is influenced by government incentive programs, contributing to a continual rise in the expat community. This trend is expected to continue, driving demand for rental housing. Currently, the average rental yield in Oman stands at around 7%.
Purchasing real estate in Oman is allowed in government-authorized areas and integrated tourist complexes (ITCs). These complexes are equipped with essential infrastructure such as schools, shopping centers, medical clinics, and recreational spaces, offering a comprehensive living experience.
Types of properties in Oman
In Oman, prospective buyers have a diverse range of real estate options to consider, including apartments, villas, townhouses, and commercial properties. These choices span various price categories and are available in key cities such as Muscat, Salalah, Sohar, and Nizwa.
In Muscat, specifically, some of the most sought-after areas for real estate investment include Al Mouj, Muscat Hills, Shatti Al Qurum, Jebel Sifah. Residential units in these areas are situated in eco-friendly green spaces, and are designed to be energy and water-efficient.
Advantages of buying real estate in Oman
- Oman stands out among its neighbors due to its natural diversity. The landscape encompasses typical Arabian deserts, pristine sea with clean white beaches, and majestic mountains adorned with lakes and forests.
- Residential buildings in Oman generally have a limited number of floors, fostering a sense of community. This environment is particularly suitable for families with children.
- Oman boasts a tax-friendly environment with no income tax, capital gains tax, and inheritance tax.
- Property is 100% freehold.
- Developers offer attractive conditions with a comfortable down payment and favorable installment plans.
- Owning property in Oman opens the door to residency privileges. Depending on the conditions, property owners can apply for a resident visa lasting from 2 to 10 years. This status grants the right to buy residential and commercial property, establish a business, open a bank account, sponsor relatives, and access various services available to Omani residents.
- Oman offers a high standard of living, a robust economy, political stability and geopolitical neutrality, a strategic location at the crossroads of trade routes, a warm climate and security.
A 7 step-guide to buying real estate in Oman
- Decide on a budget and select a location.
- Sign a contract with a real estate agency.
- Negotiate a price and conduct due diligence.
- Sign a purchase agreement and make a down payment.
- Obtain a No Objection Certificate (NOC).
- Obtain a Title Deed (Title Deed).
- Pay the required fees and charges.
Key legal considerations when buying real estate in Oman
- Foreigners may encounter restrictions on buying real estate in certain regions, as well as those near historical, archaeological, and military sites.
- In some areas, it is mandatory to obtain a NOC from the local government to complete a sale transaction.
- There is no property tax in Oman, but there is a 12% tax on rental income.
- The buyer of real estate is required to pay about 2-3% of the property’s value in the form of a commission for the transfer of ownership.
About us
Everhomes Real Estate Agency brings over a decade of expertise in the UAE and Oman real estate markets. With a proven track record, we assist clients with a range of services, including real estate purchases, business establishment, resident visa applications, and family relocations, all while minimizing headaches and costs. We take pride in having successfully addressed the needs of over 25,000 clients!
Our dedicated team comprises licensed brokers, real estate market analysts, and professional consultants who possess an in-depth understanding of the legal and financial intricacies of the Omani real estate market, backed by personal investment experience. Our approach is client-centric, ensuring that each request is met with personalized attention and expertise.