Oman’s Ministry of Housing and Urban Development has submitted plans for new structures totalling 4,800 housing units.
Strong momentum in the Sultanate of Oman’s real estate sector is expected to continue as trends evolve, suggesting that the real estate market is back on investors’ radar.
After a slowdown in demand due to the pandemic, the real estate market has noted a recovery since the third quarter of last year, supported by a solid structural foundation and a gain in demand.
Along with a number of decisions and measures, the Omani government’s new property regime that allows foreigners to own outdoor homes in incorporated resorts (ITCs) is expected to attract capital investment to the real estate market.
Dr. Khalid bin Saeed al Ameri, chairman of the board of directors of the Economic Association of Oman, in a discussion consultation last week, invited proposals from real estate experts to propose visions that can increase the attractiveness of the sector for investors.
“The flexibility of laws, laws, and regulatory and incentive measures adopted in the real estate sector has a direct role in stabilizing real estate markets and maintaining investor confidence,” he said.
The assembly reviewed purchasing power, such as the effect of value-added tax on residential sales, the availability of financing and interest rates, as well as the availability and clarity of data, such as daily transactions, clarity of investment instructions and long-term plans in the real estate sector.
The consultation addressed generation in the real estate sector, programs and crowdfunding.
The total traded price of real estate activity exceeded RO 1300 million at the end of July this year, and the total traded price of assets only increased last July to reach 213. 1 million Omani riyals, an increase of 27. 4% until June 2022.
Dr. Khalid said fees collected for all legal transactions amounted to RO 35 million, a low of 37. 8% at the end of July last year, while the negotiated price of sales contracts increased by 0. 1% at the end of July 2021, reaching RO 688 million.
The number of contracts reached 40,110 million RO contracts, 18. 9% less.
The aim of the Government of Oman is more to make housing available to all. The push for “housing for all citizens” has fueled demand for housing and, in turn, generated much-needed money in the sector.
Oman’s Ministry of Housing and Urban Planning has submitted plans for five new structures totalling 4800 dwellings, serving some 24,000 people, following the good fortune of its first housing progression allocation incorporated in Barka in the public-private partnership (PPP) model.
The ministry unveiled new opportunities for real estate companies and establishments in real estate development (both national and international) that have experience, skills, monetary and administrative capabilities in real estate development and who wish to compete, register an “Expression of Interest” develop.
Last week, the ministry announced five additional new sites for asset developers in Musandam, Dhofar, South Al Sharqiyah, North Al Sharqiyah, North Al Batinah and South Al Batinah governorates.
According to consulting and information company Mordor Intelligence, the residential real estate market in Oman is expected to register a compound annual expansion rate (CAGR) of more than 13% in the period from 2022 to 2027.
This forecast for the Oman real estate market comes amid a report published through Next Move Strategy Consulting that the global real estate market generated $9. 52 billion in 2021 and is expected to succeed at $14. 55 billion through 2030, with a CAGR of 4. 8% from 2022 to 2030. .
In its perspective, the Central Bank of Oman said in a report that, in many other jurisdictions, the real estate market in Oman has followed a different course in recent years.
“Changes in the population profile of the pandemic have put pressure on certain segments of Oman’s real estate market that were showing symptoms of oversupply even before the pandemic began,” Apex Bank said in its 2022 Financial Stability Report.
Due to Covid-19, as highlighted in the report, Oman’s real estate sector continued to feel the consequences of slowing economic growth in 2020. The residential sector has been the hardest hit, with a number of new developments and downward pressure on rental and sale prices. .
“Since recent highs in 2014, rental rates have fallen more than 25% and costs continued to fall in 2019 amid fears of an oversupply and expat workers fleeing the country,” the report says.
Expats make up only about 40% of Oman’s population and represent a giant share of the country’s residential demand. While Oman’s population has continued to grow, the expat population, a large user of residential rental properties, declined by 15% in the first year of the pandemic that affected the call for real estate.
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