Oman has announced its Vision 2040 strategy, which aims to have at least 11.7 million international and domestic tourists in 2040. This makes investing in the Oman real estate market beneficial, as it’s possible to gain high returns from renting your property.
In this article, we’ll cover the main benefits connected to investing in the Oman real estate market, the key locations, and the types of real estate opportunities.
Key Takeaways
- The main benefits of buying property in Oman are its favorable market, tax system, growth potential, and the prospect of receiving a residency,
- The main types of real estate investment opportunities in Oman are residential property, commercial property, tourism property, and industrial property.
- The key locations for buying real estate in Oman are Muscat, Salalah, Sohar, and Nizwa.
Oman Real Estate Market
Numbeo states that the high quality of life index in Oman is 209 out of 240, which is a very high indicator, making living in Oman an attractive option. That’s one of the reasons why buying a property in Oman is beneficial for both investors and individuals who just want to enjoy life.
According to Statista, Oman's real estate market is expected to reach a value of $298.60 billion in 2024. The leading segment is residential real estate, with a projected volume of $214.40 billion for 2024. Within the next 5 years, this segment is expected to have an annual growth rate of 3.70% and reach $358.00 billion by 2029.
As for the segment of commercial property in Oman's real estate market, it is also on the rise, fueled by the government's Vision 2040 strategy, which aims to diversify the economy away from oil dependence. Thanks to this vision, lots of investment is made in infrastructure, logistics, tourism, and manufacturing, which leads to the demand for commercial and industrial properties.
Benefits of Buying Property in Oman
Here are the main benefits of buying property in Oman:
Favorable Market
One of the greatest advantages of Oman’s real estate market is its affordable prices. Compared to other CGI countries, property prices in Oman are relatively lower, making this country an attractive option. For example, in its capital Muscat, the average price per square meter ranges from 800-1000 Omani Rials (2080-2600 USD).
Growth Potential
As we’ve already mentioned before, the segments of both residential and commercial real estate in Oman are on the rise. With nearly three million tourists in 2022, the tourism sector continues to grow. Moreover, the government is investing $51 bn in the tourism sector, expecting a high influx of tourists. This means that there will be significant opportunities to rent out properties and achieve high returns.
Favorable Tax System
Owning property in Oman comes with tax advantages such as no capital gains tax for personal purchases. Additionally, the primary tax associated with buying property in Oman is the property transfer tax which is only 3% of the property’s sale price.
Receiving Residency
By investing a specified minimum amount of money in the Oman real estate market, you can receive residency for 2 different validity-duration options: either for 5 or 10 years. If you want to have a 5-year residency, you should invest at least 250,000 Omani Rials in one of the following ways:
- Open or buy a company
- Buy a real estate
- Buy government bonds
If you want to receive a 10-year residency, the minimum investment amount will be 500,000 Omani Rials.
Types of Real Estate Investment Opportunities
By 2040, Oman aims to develop many sectors of the economy, including tourism, industry, services, and technology and innovation. This creates a great opportunity for those who want to invest in Oman real estate. As an investor, you should first look at property investment opportunities. The main 4 types are:
Residential Property
Residential properties in Oman include apartments, villas, and townhouses. Investing in this type of property is popular not only among locals but also expats due to the increasing demand for housing in urban areas like Muscat. The demand is driven by a growing economy and the government which aims to encourage homeownership. Residential properties in Oman usually promise a high rental income, especially if they are in prime locations, such as Shatti Al Qurum, Al Mouj, Jabel Sifah, Muscat Hills, and Muscat Bay.
Commercial Property
Commercial properties include office spaces, retail outlets, and mixed-use developments. As Oman continues to grow, many investors and businessmen establish business hubs in a region with growing economic potential. Key areas for commercial investment include Muscat Central Business District and Rusayl Industrial Estate. The real estate sector here has promising opportunities for those who want to expand their business in Oman.
Tourism Property
As mentioned above, tourism in Oman is experiencing significant growth․ In 2022, the country will host more than 3 million tourists. According to Oman’s Vision 2040 strategy, the country will be expecting about 11.7 million international and domestic tourists in 2040. To meet the expectation, the government is investing $51 bn in this sector. With a high influx of tourists, the prices of accommodations are expected to increase. Considering this factor, investing in hospitality real estate, such as hotels and resorts, can gain significant profit. The most popular tourist areas in Oman are Jebel Sifah and The Wave Muscat.
Industrial Property
Thanks to industrialization and economic diversification, Oman is expecting high growth making industrial properties like warehouses, factories, and logistics centers highly requested. Having access to major shipping routes and proximity to regional markets makes industrial real estate a good option for investors. Some of the key locations for buying industrial property are Sohar, Rusayl, Salalah, Nizwa, and Al Mazunah.
Popular Locations for Real Estate Investment
Oman comes with a wide range of investment opportunities, with several key locations standing out for their potential in terms of growth. So if you’re thinking about buying real estate in Oman, consider the following destinations.
Muscat
Being the capital of the country, Muscat is one of the most popular cities for buying real estate. Muscat offers great options in both residential and commercial properties.
Residential Property: The highest demand for housing is especially in areas like Qurum, Al Mouj, and Shatti Al Qurum, where luxury villas, and apartments attract both expatriates and locals.
Commercial Property: Business districts like Ruwi and CBD offer spacious office spaces and retail outlets.
With excellent infrastructure and services, it’s a great choice for those seeking balance in cost and quality.
Salalah
Salalah is famous for its monsoon season (Khareef), rich cultural heritage, stunning landscape, and good climate, which make the city the most preferred location for tourism property. The real estate market is in high demand, especially during the vacation season. Making a long-term investment in hotels and resorts can produce a high profit.
Sohar
Thanks to its strategic location, Sohar is also known as a “Gateway to the Gulf”. The city has proximity to ports, becoming an industrial city and offering a wide range of commercial and industrial real estate. It’s also a good destination for those who want to expand their business.
Nizwa
Nizwa is one of the oldest and historic cities in Oman. Thanks to its cultural significance, the city became one of the best to consider investing in a tourism property.
In addition, Nizwa also offers a wide range of residential properties, making it a good destination for both tourists and investors.
FAQ
How much are real estate purchase taxes in Oman?
The primary tax associated with buying property in Oman is the property transfer tax which is 3% of the property’s sale price.
Can foreigners buy property in Oman?
Yes, foreigners are eligible to buy property in Oman. As an investor, you’ll just need to consider that there may be restrictions for some of the areas.
Is it safe to buy property in Oman?
Buying property in Oman is safe if you pay attention to the documentation, and conduct property background checks. Make sure that the property is in good condition and that the person who wants to sell you the property has the right to do so.
Is real estate in Oman a good investment?
Yes, investing in real estate is considered one of the most promising options in Oman. By buying real estate in Oman, you can not only apply for a golden visa but also rent it. Having an increasing number of tourists, this country promises high returns.
How long does it take to get a Golden Visa in Oman?
Getting a Golden Visa in Oman usually takes 4-6 weeks. Depending on the case, this period may lengthen a bit.
Conclusion
To sum it up, in this article, we’ve covered the most important information regarding buying real estate in Oman, including the main benefits of investing in Oman's real estate market, and the key locations for buying property there. Having a favorable market, investor-friendly tax system, and growth of potential, you can find a balance in quality and cost while investing in property there.
