Overview
Oman’s real estate sector presents a distinct investment profile within the GCC — less speculative than Dubai, more affordable than Abu Dhabi, and backed by genuine demand drivers including population growth, tourism development, and Vision 2040 infrastructure spending. Foreign real estate ownership was historically restricted but has been progressively liberalised through the Integrated Tourism Complex (ITC) framework, which permits non-Omani nationals to purchase freehold property within designated mixed-use developments. The sector is regulated by the Ministry of Housing and Urban Planning, with the Muscat Municipality overseeing construction permits and zoning in the capital.
Key Facts
Foreign nationals may purchase freehold property in designated Integrated Tourism Complexes including Al Mouj Muscat, Muscat Bay, Hawana Salalah, Jebel Sifah, and select developments in Duqm. Property purchase above specified thresholds qualifies the owner for a renewable residency visa. There is no property tax in Oman, though municipal fees apply to some transactions. Rental yields in Muscat typically range from 5-8 percent for residential properties, above average for the GCC. Off-plan purchase protections have been strengthened through escrow account requirements for developer sales. The Central Bank of Oman regulates mortgage lending, with foreign buyer financing available from selected commercial banks at competitive rates.
Regulatory Framework
The Integrated Tourism Complex framework is governed by Royal Decree, with each ITC operating under a master developer licensed by the Ministry of Tourism and the Ministry of Housing. Foreign buyers within ITCs receive freehold title registered with the Ministry of Housing. Outside ITCs, foreign ownership is generally restricted to usufruct rights (long-term leases of up to 99 years) rather than freehold. Commercial property leasing is available throughout Oman without ownership restrictions. Real estate brokerage is regulated, and agents must be licensed. Property registration transfers require notarisation and Ministry of Housing processing, typically completed within 15-30 business days.
Opportunities
Muscat’s residential market benefits from undersupply in mid-range housing as population growth outpaces construction. Salalah’s tourism-linked property market offers lower entry prices and exposure to the Dhofar tourism growth story. Duqm’s industrial development is driving demand for worker accommodation and commercial property. The ITC pipeline includes several new developments in planning stages, offering pre-launch pricing opportunities. Commercial warehousing and logistics property demand is rising in the Sohar-Barka corridor and the Duqm SEZ.
Considerations
Real estate liquidity in Oman is lower than in Dubai — properties may take longer to sell, and transaction volumes are modest by GCC standards. The rental market is sensitive to expatriate workforce cycles, with demand fluctuating as government spending and project pipelines evolve. Currency exposure is minimal given the rial’s dollar peg, but investors should monitor fiscal policy developments that could affect government spending and, consequently, property demand. Due diligence on developer track records and ITC master plan delivery is essential, as some planned ITCs have experienced delays.