Oman Residential Real Estate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.38 Billion |
| Market Size (2029) | USD 6.80 Billion |
| CAGR (2024 - 2029) | 9.19 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oman Residential Real Estate Market Analysis
The Oman Residential Real Estate Market size is estimated at USD 4.38 billion in 2024, and is expected to reach USD 6.80 billion by 2029, growing at a CAGR of 9.19% during the forecast period (2024-2029).
Oman's real estate sector felt the consequences of slower economic growth in 2020 due to the COVID-19 pandemic. The residential sector was hit the hardest, with a slew of new developments putting downward pressure on rental and sale prices. Expatriates make up 40% of Oman's population and account for a large portion of the country's residential demand.
- The expatriate population has been stabilizing in recent months, but additional reductions in numbers are possible due to the pandemic's long-term economic effects and a greater focus on the Omanization of the workforce, particularly in white-collar sectors.
- According to the Oman Census 2021, there were around 87,000 unoccupied residential units in Muscat (almost 20% of the total residential supply). A considerable number of these vacant units are expected to be used as rentals, as most Omanis own their homes.
- Demand dropped significantly in the previous 15 months due to a significant drop in the number of expatriates in Muscat in 2021 and the difficulties for new personnel to join Oman owing to travel restrictions. It has concentrated on more affordable apartments and villas/townhouses in the more exclusive Al Mouj, Muscat Hills, and Shatti Al Qurum neighborhoods.
- In recent years, Muscat witnessed an increased building of residential units for the rental market (particularly low to moderate-grade residential apartments with limited/no facilities), resulting in a significant surplus (especially with falling demand).
- According to current evidence, there is a major and growing supply/demand imbalance. Many of the residential units built in recent years have been poorly assessed in terms of location, design, quality, and/or target market.
- The number of well-thought-out, high-quality residential units designed with a specific tenant market in mind is still rather small. Over the last 18 months, average apartment rental values declined by 10-15%, while average villa rental values dropped by 15-25% due to tightening tenant budgets and a greater focus on value.
- Al Mouj and Muscat Hills witnessed a more moderate drop in average rental values of around 10% since the beginning of 2021 and remained relatively stable in 2022, with a limited supply of high-end villas. In contrast, the growing supply of apartments at both these locations puts greater pressure on the rental values of apartments.
Oman Residential Real Estate Market Trends
Supply of Residential Buildings
During the period from 2023 onwards, a sustained increase in the number of expatriates has resulted in an increasing demand for rented accommodation throughout Muscat. The number of apartments available for rent has decreased, due to high demand compared to supply.
The quality of the properties, professional property management, a growing number of retail and food & beverage outlets as well as an extensive range of leisure facilities have made communities such as Al Mouj one of the most popular residential areas in the city.
The Hay Al Naseem project, the first of a series of integrated housing projects planned across the Sultanate under the Al Souroh Initiative, served as a model for the five subsequent developments. Hay Al Naseem is a mixed-use development in Barka that will be built on a 350,000 sq. m. tract of government property. It will feature a variety of residential units surrounded by integrated utilities, as well as commercial facilities, recreational services, public parks, and community amenities. There are 132 semi-detached villas (3-5 BHK), 320 flats (3-4 BHK), 120 detached villas (3-5 BHK), and 479 townhouses available for purchase.
Al Amerat 1: Covering an area of around 300,000 sq meters, Plot Number 9197 in Al Amerat in Muscat Governorate will feature an integrated housing project with around 750 assorted residential units distributed across residential apartments, villas, attached villas, semi-attached villas, and detached villas, along with a full array of support infrastructure. As many as 3,750 people can be hosted within this development.
Al Amerat 2: In Muscat Governorate, Plot Number 9199 measures about 445 thousand sq. m. and will accommodate about 1,100 residential units that will house an estimated 5,500 people.
Bidbid: Interested developers are invited to invest in an integrated housing scheme on a 287 thousand sq. m. plot in Bidbid (Al Dakhiliyah Governorate) featuring about 750 residential units serving around 3,750 people.
Al Seeb: The Ministry offers about 231 thousand sq. m. of land at Hellat Al Fateh in Seeb Wilayat (Muscat Governorate) for the construction of about 600 residential units that can serve about 3,000 people.
Nakhl: The largest of the five developments is proposed to come up at Halban (Wilayat of Nakhl) in the South Al Batinah Governorate. The ministry is providing round 637 thousand square meters of land for the construction of 1,600 residential units to cater to about 8,000 people.
Increase in Luxury Residential Properties
Eagle Hills Muscat, a joint venture between Eagle Hills Abu Dhabi and Ezz International, launched a new sales center in the Sultanate of Oman as the demand for premium brand housing units continues to rise. The Sultanate of Oman's first luxury brand residences, as well as the region's first "Residences at Mandarin Oriental" project, was created to provide a five-star lifestyle. It is located in the center of Muscat along Shati Al Qurm. The project provides an aesthetic touch to the original qualities of the site through its synergy with the spirit of Muscat, whether in the city's general scale or its minute nuances with its unique design.
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, a '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 a duration of 99 years if they hold a valid residence permit for at least two years.
The usufruct purchase system, according to a document issued by the Ministry of Housing and Urban Planning, includes the right of the expatriate to own the housing unit in person or in partnership with first-degree relatives, the ability to obtain financing with the real estate unit as collateral, the ability to sell the residential real estate unit after four years, and the right to transfer the right of usufruct after death to the legal heirs.
Oman Residential Real Estate Industry Overview
The market is still absorbing new projects, and modern housing seekers are expected to invest in the real estate sector. Thus, various companies focus on launching and marketing new projects, along with entertainment and stability for residents.
The market is still absorbing new projects, and modern housing seekers are expected to invest in the real estate sector. Thus, various companies focus on launching and marketing new projects, along with entertainment and stability for residents.
The market is witnessing slow growth due to declining demand and increasing supply, which resulted in a considerable gap, thus exacerbating price pressures. Key market players in the market include Al Mouj Muscat, Majan Development Company, AlRaid Group, and Wujah Real Estate.
Oman Residential Real Estate Market Leaders
Al Mouj Muscat
Al Raid Group
Wujha Real Estate
Al-Taher Group
Maysan Properties SAOC
*Disclaimer: Major Players sorted in no particular order
Oman Residential Real Estate Market News
- October 2022, Al Mouj Muscat launched phase 2 of Zunairah Mansions in the Shatti District. The new phase of the mansions comes in different styles and features six opulent bedrooms with a built-up area of 933 square meters, a garage, covered parking for up to six automobiles, and roomy servant quarters.
- April 2022, Oman Post and Asyad Express signed a partnership agreement with WUJHA Real Estate to invest, design, and develop land aligned with the land investment plan.
Oman Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Overview
4.2 Residential Real Estate Buying Trends, along with Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects
4.4 Insights into the Size of Real Estate Lending and Loan to Value Trends
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in the Residential the Real Estate Sector
4.7 Insights into Capital Market Penetration and REIT Presence in the Residential Real Estate Sector
4.8 Insights into Affordable Housing Support provided by Government and Public-Private Partnerships
4.9 Impact of COVID-19 on the Market
4.10 Insights into Technology and Startups in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
5. Market Dynamics
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products and Services
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Apartments and Condominiums
6.1.2 Villas and Landed Houses
6.2 By Key Cities
6.2.1 Muscat
6.2.2 Dhofar
6.2.3 Musandam
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Al Mouj Muscat
7.2.2 Al Raid Group
7.2.3 Wujha Real Estate
7.2.4 Al-Taher Group
7.2.5 Maysan Properties SAOC
7.2.6 Orascom Development Holding AG
7.2.7 Harbor Real Estate
7.2.8 Edara Real Estate LLC
7.2.9 Savills
7.2.10 Abu Malak Global Enterprises Muscat
7.2.11 Al Madina Real Estate Company Muscat
7.2.12 Better Homes
7.2.13 Coldwell Banker
7.2.14 Engel & Voelkers
7.2.15 Hilal Properties
7.2.16 Saraya Bandar Jissah*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
9.1 Macroeconomic Indicators (GDP breakdown by Sector, Contribution of Construction to the Economy, etc.)
9.2 Key Production, Consumption, and Exports and Import Statistics of Construction Materials
Oman Residential Real Estate Industry Segmentation
Residential real estate is land built for people to live and cannot be utilized for commercial or industrial purposes. This happens when someone purchases land designated for residential use, which becomes real property and contains a wide range of potential homes, from houses to houseboats and neighborhoods ranging from the poorest slum to the wealthiest suburban development.
The residential real estate market in Oman is segmented by type (apartments and condominiums and villas and landed houses) and by key cities (Muscat, Dhofar, and Musandam). The report offers the market sizes and forecasts for the residential real estate market in Oman based on revenue in USD billion for the above segments.
A complete assessment of the residential real estate market in Oman includes an assessment of the economy and the contribution of sectors in the economy, a market overview, market size estimation for key segments, and emerging trends in the market segments in the report. Further, the report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the residential real estate market in Oman is depicted through the profiles of active key players.
| By Type | |
| Apartments and Condominiums | |
| Villas and Landed Houses |
| By Key Cities | |
| Muscat | |
| Dhofar | |
| Musandam |
Oman Residential Real Estate Market Research FAQs
How big is the Oman Residential Real Estate Market?
The Oman Residential Real Estate Market size is expected to reach USD 4.38 billion in 2024 and grow at a CAGR of 9.19% to reach USD 6.80 billion by 2029.
What is the current Oman Residential Real Estate Market size?
In 2024, the Oman Residential Real Estate Market size is expected to reach USD 4.38 billion.
Who are the key players in Oman Residential Real Estate Market?
Al Mouj Muscat, Al Raid Group, Wujha Real Estate, Al-Taher Group and Maysan Properties SAOC are the major companies operating in the Oman Residential Real Estate Market.
What years does this Oman Residential Real Estate Market cover, and what was the market size in 2023?
In 2023, the Oman Residential Real Estate Market size was estimated at USD 3.98 billion. The report covers the Oman Residential Real Estate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Oman Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Residential Real Estate in Oman Industry Report
Statistics for the 2024 Oman Residential Real Estate market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Oman Residential Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
