Market Trends of Oman Residential Real Estate Industry
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.
