The Future Of Buying Property In Oman: Trends And Predictions

Oman's real estate market is forecasted to reach an astonishing US$310.74 billion by 2025. The residential sector again leads the Oman real estate sector, with a value of US$226.25 billion. This development directly comes from the government's Vision 2040 program, which targets diversifying the economy, attracting foreign investment, and enhancing sustainable urban planning.

At the forefront of this change, DarGlobal, our prestigious luxury real estate company, is a central force behind this change. Our ambitious projects under AIDA align with the Vision 2040 Plan and help investors reshape Oman property investment. In this detailed guide, we will discuss the current state of Oman’s real estate market, the latest trends in buying property in Oman, high ROI-led investment opportunities, and future insights.

Current State of the Oman Real Estate Market

Oman's housing market has been witnessing sustained and steady expansion, thanks to the government's economic diversification initiatives in the real estate sector. The growth is further supported by the rising demand for residential and commercial properties and government-sponsored schemes encouraging foreign ownership and investment.

With the help of Vision 2040, Oman is now aiming to attract $50 billion in foreign direct investment (FDI) to create a business-friendly environment across sectors. This has allowed the government to quickly reach major milestones like the completion of the OMRAN Waterfront Project and integrated tourism complexes (ITCs). Not just that, the growth of Oman's real estate market is mostly driven by the developers and investors investing in Duqm Special Economic Zone and Muscat's Madinat Al Irfan. These zones have attracted many domestic and foreign investors, especially in real estate projects. 

Trends in Buying Property in Oman

Oman’s real estate market has been evolving and reshaping rapidly due to evolving consumer preferences and favorable government policies. Here are some prominent trends:

1. Overseas Ownership on the Rise

Oman’s government decision to ease foreign ownership rules has proven to be the best for reshaping their property market. Expats can now buy freehold properties in areas like Al Mouj Muscat, gaining long-term residency in the process. This change has made owning a home in Oman more accessible and even appealing for global buyers and institutions.

Many foreign nationals are also drawn to Integrated Tourism Complexes (ITCs), where there are many luxurious projects. The golf courses, private beaches, and resort-style living, etc. offer more than just a home, they promise a lavish lifestyle. For investors, the perks and incentives in Oman's housing market make things even smarter.

2. Rising Demand for Luxury Properties

Oman’s wealthy residents and affluent expats are driving up demand for high-end homes. Upscale projects, such as our Fairway Villas and Trump Golf Villas, are catching the eye of investors seeking premium properties with exclusive amenities.

But it’s not just about money, it’s about living in a space surrounded by smart technology and automated systems along with scenic beauties. Buyers are after homes with waterfront views, golf course access, and private pools to create a stronger market for resort-style living experiences. This is why developers have been creating more elite, community-focused neighborhoods.

3. Growth of Sustainable and Eco-Friendly Developments

Today, as the plans for Vision 2040 progress, developers have been keen to ensure that residential and commercial projects integrate energy-efficient systems, solar panels, and water-saving technologies. This shift aligns with Vision 2040’s sustainability goals and attempts to make eco-friendly properties a sought-after investment option. 

Our projects like AIDA Oman are leading the way by offering luxurious yet sustainable living experiences. Not just that, to boost up the process, Oman’s government offers incentives and many tax benefits for eco-friendly construction methods for both developers and investors alike. 

4. Preference for Smart Homes

Today, buyers in Oman no longer want just beautiful homes, they want smart, aesthetically pleasing and traditionally accurate architecture for their home. Today, developers are working on properties that offer automated lighting, temperature control, and also, Oman’s architecture. Even older homes are getting upgrades. Smart locks, voice-activated systems, and remote monitoring are becoming common to add the sense of convenience with modern living.

Investment Opportunities in Oman Real Estate

Oman's real estate market presents lucrative investment opportunities in key areas including:

1. Integrated Tourism Complexes (ITCs)

According to the insights, Oman has issued 19 ITC licenses, with investments valued up to US$11.37 billion. These projects include over 42,500 housing units and 16,500 hotel rooms. This makes Oman a prime investment zone for foreign buyers seeking freehold ownership.

2. Special Economic Zones (SEZs)

The Duqm SEZ witnessed a 55% increase in new investments, reaching about OMR 2.1 billion in 2024. SEZs offer 100% foreign ownership, tax exemptions, and 30-year tax-free profits to drive Oman property investment.

3. Muscat’s Prime Locations

Areas like Shatti Al Qurum and Al Mouj are seeing rising property values and strong rental yields. Our projects in Muscat, such as Fairway Villas and Marriott Residences, under AIDA are transforming the city into a premium real estate hub to attract high-net-worth investors.

Future Predictions for the Oman Housing Market

The Oman housing market is expected to undergo dynamic changes, fueled by Vision 2040 and emerging trends, including:

1. Stable Growth in Property Values

In the next five years, Oman's property values will appreciate by 4-6% per annum. This consistent increase is driven by increasing demand, government support, and foreign investments. Also, tourism and freehold rights growth will propel stable property value appreciation.

2. Growth of Smart and Sustainable Communities

As Vision 2040 favors sustainable urbanization, upcoming housing developments will focus on:

• Smart technology integration (energy efficiency, automated security)
• Green infrastructure, such as solar panels and water conservation systems.
• Eco-friendly housing developments, keeping pace with international sustainability trends.

3. Greater Foreign Investment in Freehold Properties

The government's move to ease ownership regulations has drawn in more expatriate investors. ITCs, which enable foreigners to own freehold properties, will experience a huge rise in demand to give the Oman real estate market a boost.

4. Increase in Affordable and Mid-Segment Housing

The need for cheap and mid-range properties is also likely to increase as Oman's middle class keeps on growing. Developers are likely to provide cheaper residential space as the demand increases for first-time homebuyers and young households. 

5. Greater Rental Yields in Prime Locations

Prime locations such as Muscat, Al Mouj, and Qurum will continue to provide rental yields of 6-8%, which will remain appealing for buy-to-let investors. With growing tourism and expatriate residence, rental demand in these locations will continue to be strong.

Conclusion

The real estate sector of Oman has the potential to lead the residential market in the entire Middle East region for domestic and overseas investors. The country's Vision 2040 offers many government incentives and huge infrastructure projects led by luxury developers.

Our luxury real estate company, DarGlobal, leads the way in this revolution with high-end projects like AIDA to establish new standards for luxury property. Our focus on world-class smart amenities, green-friendly yet culturally appropriate designs, and international appeal across countries has helped us become one of the top destinations for global investors. If you want to invest in Oman’s real estate market, explore our exclusive projects and discover exceptional opportunities today!