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Oman Commercial Real Estate Market Size (2024 - 2029)

The Oman commercial real estate sector is poised for substantial growth, with the market size expected to expand significantly over the forecast period. Despite the initial setbacks caused by COVID-19, the market has shown resilience and recovery. The government's Vision 2040 initiative is a key driver, attracting investment through incentives such as tax breaks and reduced rents. The hospitality, industrial, and office space sectors are particularly poised for expansion, supported by new developments and investment opportunities. This growth trajectory is further enhanced by strategic programs aimed at boosting industrial investment, thereby contributing to the overall economic development of the country.

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Market Size of Oman Commercial Real Estate Industry

Oman Commercial Real Estate Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 2.11 Billion
Market Size (2029) USD 2.79 Billion
CAGR (2024 - 2029) 5.37 %
Fastest Growing Market Asia Pacific
Largest Market Europe
Market Concentration Low

Major Players

Oman Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Oman Commercial Real Estate Market Analysis

The Oman Commercial Real Estate Market size is estimated at USD 2.11 billion in 2024, and is expected to reach USD 2.79 billion by 2029, growing at a CAGR of 5.37% during the forecast period (2024-2029).

  • The commercial real estate market in Oman is experiencing significant growth, including potential growth of the hospitality and travel industries due to relaxed restrictions and vaccine roll-outs, the development of traditional office space dedicated to startups and new companies, and the introduction of new co-working spaces in the country.
  • Under Vision 2040, the Omani government is inviting more investment flows into the commercial real estate market. Furthermore, investment opportunities are growing in the hospitality and industrial segments, with developers increasingly attracted to tax breaks, reduced rent, fast-tracked licenses, and duty waivers available in the country.
  • In addition, the Omani 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 the country’s economy with an increase in GDP.
  • Furthermore, Oman's Public Establishment for Industrial Estates (Madyan) is planning six new industrial cities to develop 50 million sq. m 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

CRE stands for 'commercial real estate.' It can refer to anything from a single store to a large shopping center. It can also refer to property used solely for business purposes or to serve as a workspace instead of a home, which would be considered residential real estate (HVAC). The most common use for CRE is leasing to tenants to carry out income-producing activities. 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 key cities (Muscat, Sohar, and Dhofar).

The report offers the market sizes and forecasts in value (USD) for all the above segments.

By Type
Offices
Retail
Industrial
Logistics
Multi-family
Hospitality
By Key Cities
Muscat
Sohar
Dhofar
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Oman Commercial Real Estate Market Size Summary

The commercial real estate sector in Oman is poised for substantial growth, driven by strategic government initiatives and a recovering economy post-COVID-19. The market is witnessing a resurgence in demand, particularly in the hospitality and travel sectors, as restrictions ease and vaccination efforts progress. The Omani government's Vision 2040 is a pivotal factor in this growth, encouraging foreign investment through incentives such as tax breaks and expedited licensing processes. The development of new co-working spaces and traditional office spaces tailored for startups further underscores the dynamic nature of the market. Additionally, the Ministry of Commerce, Industry and Investment Promotion's efforts to attract significant investments into the industrial sector are expected to bolster the economy and create new opportunities within the commercial real estate landscape.

The hospitality sector, although still in recovery, is being revitalized through strategic restructuring and investment by the Oman Investment Authority, aiming to enhance tourism and hospitality real estate investments. Vision 2040 also aims to significantly boost tourism's contribution to GDP, create jobs, and attract millions of tourists, with planned clusters of attractions and accommodations playing a crucial role. The government's commitment to infrastructure development, including new industrial cities, improved road networks, and a national railway system, is set to enhance connectivity and trade, further supporting the commercial real estate market. Key players in the market, such as Al Taher Group and OMRAN Group, are actively involved in these developments, with projects like the relaunch of the Blue City and the development of Madinat Al Irvine East highlighting Oman's ambition to position itself as a leading destination for business and tourism.

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Oman Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

        1. 1.2.1.1 Rise in Population Driving the Market

        2. 1.2.1.2 Foreign Investments Driving the Market

      2. 1.2.2 Market Restraints

        1. 1.2.2.1 High Costs Affecting the Market

      3. 1.2.3 Market Opportunities

        1. 1.2.3.1 Technological Innovations Driving the Market

    3. 1.3 Supply Chain/Value Chain Analysis

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers/Consumers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Logistics

      5. 2.1.5 Multi-family

      6. 2.1.6 Hospitality

    2. 2.2 By Key Cities

      1. 2.2.1 Muscat

      2. 2.2.2 Sohar

      3. 2.2.3 Dhofar

Oman Commercial Real Estate Market Size FAQs

The Oman Commercial Real Estate Market size is expected to reach USD 2.11 billion in 2024 and grow at a CAGR of 5.37% to reach USD 2.79 billion by 2029.

In 2024, the Oman Commercial Real Estate Market size is expected to reach USD 2.11 billion.

Oman Commercial Real Estate Market Report Snapshots

Commercial Real Estate In Oman Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)