Real estate in Oman

One of the biggest countries in the Middle East, the Sultanate of Oman holds tremendous potential in terms of trade, industrial growth and of course, real estate. As a result of a long maritime history and interaction with various cultures, Oman can rightfully claim that it is the friendliest country in the Gulf basin. Today, Oman is one of the fastest growing economies in the Gulf, thanks to prudent government planning, responsible expenditure as well as heavy investment in the non-oil sector.

Unlike other countries in the Middle East, Oman boasts lush green terrain in certain areas that spell out the promise of a relatively calm and unhurried lifestyle. This country is home to vast agricultural farms that are a vital source of fruits and vegetables to the rest of the GCC. With extensive geographic and climatic diversity, fertile coastal zones and mountains, Oman has the most versatile terrain in the Gulf. As the country is poised to develop further, the local real estate sector is going through an exciting phase.

Oman is attracting foreign investors, not only from the GCC and Asia but also from distant Europe, due to the low cost of its land, high economic growth potential, easy availability of beachfront plots and good infrastructure. Of late, Oman has been investing heavily in its tourism, infrastructure, specifically in its airline, roads and airports. Foreign participation in the tourism industry has also been increasing due to government incentives to investors.

Property ownership in Oman

Market studies reveal that total investments into the real estate sector in Oman reached US$ 2 billion in 2007, up from US$ 0.75 million in 2005. Industry reports indicate the average price per square meter for residential land in Oman increased by 253 per cent, reaching US$ 135 per square meter in 2007 compared to just US$ 38 in 2005.

On 22nd February 2006, Sultan Qaboos Ruler of the Sultanate of Oman issued a Royal Decree declaring that expatriates and foreign nationals may purchase land and property in Oman within ‘tourist designated areas' either for accommodation or investment.

Foreign buyers of freehold property are also guaranteed renewable residency rights along with immediate family. If you buy property in Oman, please rest assured that you will not be bothered by the traffic chaos and congestions of the neighboring states. Omani cities are quiet and peaceful, yet modern with all contemporary urban amenities. The inheritance rights are determined by the prevailing inheritance laws of the buyers' countries of origin. 

Over the last five to ten years tourism in Oman has taken off in a big way, with remarkable growth being experienced recently. There has been an increase in direct, non-stop flights from key international markets which have identified the potential of Oman as both a tourist and business destination. This boom in the tourism sector is reflected in the real estate industry as well.

Property Investment in Oman - Advantages

• Oman has zero taxation
• Rental market in tipped in favor of landlord
• Strong economic growth of the country
• Exceptional performance of tourism sector
• Freehold property ownership

The Government of Oman is drafting a law to attract foreign investments and is on a liberalization drive to expand the markets. Many multinational companies have taken advantage of the situation and established bases in Oman, especially its capital city, Muscat. This has boosted rents and consequently the rental yields.

Home finance

In Oman, banks provide attractive mortgage packages at low interest rates. Also, it is possible to avail of Islamic finance.