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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 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.