Overview
Oman has progressively opened its real estate market to foreign buyers, creating designated areas where non-Omanis can acquire freehold and usufruct property rights. The Sultanate’s property market offers diverse options ranging from luxury residential developments to commercial and mixed-use projects. Foreign ownership is permitted in Integrated Tourism Complexes and other designated zones approved by the Ministry of Housing and Urban Planning. The property registration system is administered through the Ministry of Housing, which maintains the official land registry. Real estate investment in Oman can qualify investors for residency permits, adding to the appeal for international buyers.
Key Facts
Foreign nationals may purchase property in designated Integrated Tourism Complexes such as The Wave Muscat, Muscat Hills, and Jebel Sifah. Usufruct rights for up to 99 years are available in certain areas for non-GCC nationals. GCC nationals enjoy broader property ownership rights across the Sultanate. Property transactions require registration with the Ministry of Housing and payment of applicable registration fees. Mortgage financing is available from Omani banks for both residents and qualifying non-residents. Property ownership in an ITC with a minimum value can qualify the buyer for a renewable residency permit.
Regulatory Framework
Property ownership by foreigners is governed by Royal Decrees and regulations issued by the Ministry of Housing and Urban Planning. The Real Estate Registration Law establishes the legal framework for property transactions and title registration. All property sales must be documented through notarised contracts and registered with the official land registry. Developers of Integrated Tourism Complexes must obtain specific approvals and meet regulatory standards before offering units to foreign buyers. Condominium and strata title arrangements are governed by dedicated regulations addressing common area management and owner associations.
Opportunities
Oman’s developing tourism infrastructure creates demand for hospitality-linked real estate investments. New ITC developments are being planned in coastal and mountain locations offering premium lifestyle amenities. Commercial real estate in Muscat and Sohar benefits from growing economic activity and urbanisation. Rental yields in Oman remain competitive compared to regional markets, particularly in the capital area. Government investment in infrastructure including roads, airports, and utilities supports property value appreciation.
Considerations
Property due diligence should include verification of title, zoning compliance, and developer credentials. Transaction costs include registration fees, agent commissions, and potentially value-added tax on commercial properties. Foreign ownership is restricted to designated areas, and purchasing outside these zones is not permitted for non-GCC nationals. The rental market can be cyclical, and investors should assess occupancy rates and demand trends before purchasing income-generating properties. Engaging a licensed real estate broker and qualified legal counsel is strongly recommended for all property transactions.