Residential Real Estate Market in Oman Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Oman Residential Real Estate Market Analysis

The Oman Residential Real Estate Market size is estimated at USD 4.78 billion in 2025, and is expected to reach USD 7.42 billion by 2030, at a CAGR of 9.19% during the forecast period (2025-2030).

The Omani real estate market landscape is experiencing significant transformation driven by demographic shifts and changing market dynamics. Expatriates, who constitute approximately 40% of Oman's population, continue to be a crucial demand driver in the residential real estate sector. However, the market faces challenges with oversupply, particularly in Muscat, where approximately 87,000 residential units remain unoccupied, representing nearly 20% of the total residential supply. This oversupply situation has led to significant price adjustments, with average apartment rental values declining by 10-15% and villa rental values dropping by 15-25% over the recent period.

The government's ambitious urban development initiatives are reshaping the residential landscape across Oman. In June 2023, the launch of Sultan Haitham City marked a significant milestone, with plans to accommodate 100,000 people in 20,000 new residences. The project encompasses 19 integrated residential communities equipped with comprehensive amenities, including 23 mosques and 11 health facilities. Additionally, the Ministry of Housing and Urban Planning has unveiled plans to develop future sustainable cities in Salalah, Nizwa, Sohar, and Muscat, spanning an area of 5 million square meters, demonstrating the government's commitment to sustainable urban development.

The market is witnessing a surge in waterfront and integrated tourism complex (ITC) developments, enhancing the premium residential segment. The Hayy al Sahil project in Quriyat, launched in May 2023, represents a significant development with 400 housing units in its first phase, offering permanent residency options for overseas investors. The project's total investment of RO385 million encompasses various phases, including the development of 1,600 housing units in the second phase and 3,000 units in the final phase, along with luxury waterfront villas and comprehensive amenities.

Premium residential developments, particularly in locations like Al Mouj and Muscat Hills, have demonstrated greater market resilience. These areas experienced a more moderate decline in rental values of around 10% and have maintained relative stability, particularly in the high-end villa segment. The real estate market is also seeing innovative developments like the three massive waterfront projects planned by Oman's Ministry of Housing and Urban Planning for the governorates of Dhofar, Musandam, and South Al Batinah, including the USD 40 million Rathath Boulevard project in Dhofar and the Aames Bay Development in Musandam, valued at RO6.9 million.

Oman Residential Real Estate Market Trends

Government Initiatives and Infrastructure Development

The Omani government's aggressive infrastructure development initiatives are significantly driving the real estate market. In June 2023, the launch of Sultan Haitham City marked a major milestone, with plans to construct 20,000 new residences across 19 integrated residential communities, complete with comprehensive amenities including 23 mosques and 11 health facilities. This development demonstrates the government's commitment to creating sustainable urban communities that cater to modern living requirements while maintaining cultural values. The project's comprehensive planning includes essential services like healthcare facilities designed to serve varying population capacities, with two health centers capable of serving 20,000 patients and six centers serving 10,000 patients each.

The Ministry of Housing and Urban Planning's commitment to developing integrated housing projects across multiple governorates further strengthens the market momentum. In January 2023, the ministry signed eight new contracts worth over OMR 150 million (USD 389.55 million) across Muscat, North Al Batinah, and South Al Batinah. These projects include the construction of integrated cities featuring 1,050 homes in the Wilayat of Amerat and 1,350 housing units in the Halban district, both equipped with modern utilities and comprehensive community facilities. Additionally, the development of three waterfront projects in South Batinah, covering areas of 10,990 square meters and 222,441 square meters in Barka and 180,425 square meters in Mussanah, demonstrates the government's focus on creating diverse residential options.

Growing Expatriate Population and Tourism

The expanding expatriate population and tourism sector are driving substantial growth in Oman's real estate market. From 2023 onwards, there has been a sustained increase in expatriate numbers, leading to heightened demand for rental accommodation throughout Muscat. The government's progressive policies, including the introduction of the usufruct system allowing expatriates over 23 years old to purchase housing units in multi-story residential buildings for 99 years, have created new market opportunities. This system provides significant benefits, including the right to own housing units personally or in partnership with first-degree relatives, access to financing with real estate collateral, and the ability to sell residential units after four years.

The tourism sector's growth has catalyzed the development of integrated tourism complexes (ITCs) and luxury residential properties. Leading real estate developers in Oman, like Muriya, have responded to this trend with projects such as Amazi in Hawana Salalah and Fanar Views, offering waterfront living options with high potential returns in the year-round rental market. These developments combine residential offerings with tourism amenities, including hotels, retail outlets, and recreational facilities. For instance, the Fanar Views project provides fully furnished, serviced townhouses and villas with access to hotel amenities, beaches, and sports facilities, catering to both permanent residents and tourists seeking premium accommodation options.

Strategic Urban Planning and Sustainable Development

Strategic urban planning initiatives are fundamentally reshaping Oman's residential real estate landscape. The Greater Muscat master plan, scheduled for completion in early 2023, represents a comprehensive approach to urban development, focusing on land use optimization, population distribution, economic growth, and the integration of public transport networks. This master plan particularly emphasizes the development of sustainable green spaces that support community prosperity while protecting the natural environment, making it a significant driver for residential real estate development. The integration of parts of Barka into Greater Muscat has created new opportunities for residential development in previously underutilized areas.

In February 2023, the Ministry of Housing and Urban Planning launched ambitious plans to develop future sustainable cities in Salalah, Nizwa, Sohar, and Muscat, covering an area of 5 million square meters. These cities are designed to accommodate between 50,000 to 130,000 people, with housing units ranging from 10,000 to 30,000 per development. The planning emphasizes the creation of integrated urban communities with essential services and modern amenities. This strategic approach to urban development includes the allocation of 23,000 residential land plots and the processing of over 30,000 applications for ownership verification and registration, demonstrating the government's commitment to sustainable urban growth and housing accessibility.

Segment Analysis: By Type

Villas/Landed Houses Segment in Oman Residential Real Estate Market

The villas and landed houses segment continues to dominate the Oman residential real estate market, commanding approximately 66% market share in 2024. This segment's prominence is particularly evident in premium locations like Muscat Hills and Al Mouj, where high-end villas with outdoor gardens and private swimming pools remain highly sought after. The segment's strong performance is supported by increasing demand from both local and international buyers seeking spacious living environments. Recent developments like the Sultan Haitham City project, which includes numerous luxury villas, and the LA VIE project in Muscat Hills, featuring premium residential units, demonstrate the robust growth potential in this segment. The preference for villas is further reinforced by changing lifestyle preferences post-pandemic, with more families prioritizing larger living spaces and private outdoor areas. Additionally, the demand for residential housing in these areas has contributed to rising house prices in Oman.

Condominiums/Apartments Segment in Oman Residential Real Estate Market

The condominiums and apartments segment is experiencing the fastest growth in the Oman residential real estate market, with projections indicating approximately 7% growth from 2024 to 2029. This accelerated growth is driven by several factors, including urbanization trends and the increasing demand for affordable residential property options in major cities. The segment is witnessing significant developments, particularly in integrated tourism complexes like Muscat Bay, which offers luxury apartments with world-class amenities. The growth is further supported by government initiatives promoting affordable housing and the development of smart cities. Recent projects like the Hayy al Sahil in Quriyat, which includes 400 housing units in its first phase, and the Residences at Mandarin Oriental, featuring 156 premium branded residences, exemplify the segment's dynamic expansion and diversification. The availability of Oman apartments for sale in these developments highlights the segment's appeal to a diverse range of buyers seeking property for sale in Muscat Oman.