Press Release

Oman Residential Real Estate Market to Record a Substantial CAGR of Around 9.8% During 2024-30

The Oman Residential Real Estate Market is anticipated to grow at a CAGR of about 9.8% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The influx of expatriates in Oman has sparked a surge in the demand for rental accommodations, underscoring the importance of well-managed residential communities. The expatriates have been observed to prefer communities that are renowned for their quality and have extensive amenities like retail outlets, dining options, and recreational facilities. Responding to this demand, Oman has embarked on several large-scale integrated housing projects aimed at offering mixed-use residential areas that meet the diverse needs of residents. These initiatives are crucial for bridging the supply-demand gap in the urban residential real estate sector and reflect Oman's proactive stance toward urban development. By creating vibrant, fully integrated communities, these projects not only accommodate the needs of local citizens but also cater to the expanding expatriate community. Consequently, the forthcoming projects are poised to drive further growth & development in the Oman Residential Real Estate Market in the years ahead.

Furthermore, the high-end segments, notably luxury villas in Al Mouj and Muscat Hills, continue to draw interest and maintain a steady market, occasionally seeing slight upticks in rental prices. This resilience in the luxury market highlights the continued desirability of high-quality living spaces in Oman, underscoring a strong potential for further growth and investment in the country’s residential real estate sector. These trends demonstrate a dynamic market that is effectively aligning with the needs of both expatriates and residents, offering prospects for ongoing growth in the coming years, further states the research report, “Oman Residential Real Estate Market Analysis, 2024.”

Segmentation Analysis

The Apartments & Condominiums Segment Leads the Market

Based on the type, the market is further bifurcated into apartments & condominiums, villas & landed houses. In Oman's urban hubs, like Muscat, there has been a notable uptick in demand for apartments and condominiums, a trend largely fueled by the swift pace of urbanization and the influx of expatriates. These groups often gravitate towards practical living solutions close to their workplaces, equipped with essential services and recreational amenities. The allure of apartment living is further heightened by the emergence of mixed-use projects across Oman, seamlessly blending residential spaces with retail, dining, and office facilities, offering a streamlined lifestyle tailored to the evolving needs of cities.

Moreover, the proliferation of apartment complexes serves as a strategic response to the challenges posed by land scarcity in urban areas, promoting more efficient land utilization through vertical construction. This approach is complemented by governmental efforts to bolster urban infrastructure, including transportation and utilities. Thus, equipped with modern conveniences like security systems, fitness centers, and communal areas, apartments in Oman are expected to witness increased demand among prospective tenants.

The North Region Holds a Considerable Market Share

The North region, with Muscat at its forefront, dominates the Oman Residential Real Estate Market, particularly in the luxury and high-end residential sectors. Muscat's allure as a prime real estate destination has been underpinned by its well-established infrastructure and strategic economic initiatives, appealing to both locals and expatriates alike. Also, noteworthy developments in this region underscore its resilience in sustaining demand for residential units.

Furthermore, the northern region's real estate landscape would also benefit from favorable policies like the usufruct system, which incentivizes foreign investment by granting expatriates favorable property ownership terms. This policy shift has spurred a rapid uptick in demand for residential properties, particularly luxury apartments and villas, catalyzing the introduction of new projects across the region. Thus, with an uptick in residential projects, along with their growing demand among expatriates, the northern region is expected to experience substantial growth in the coming years.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Al Raid Group, Al Mouj Muscat, Al Taher Group, Wujha Real Estate, Orascom Development Holding AG, Maysan Properties SAOC, Harbor Real Estate, Savills, Hilal Properties, Edara Real Estate LLC, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Market Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?