Oman real estate: 62,800 new homes by 2030 as foreign ownership, affordable prices and surging population point to boom

Oman is poised to deliver 62,800 new residential real estate units by 2030, with 5,500 coming to market this year in line with the country’s strategic vision, according a Cavendish Maxwell report.

According to Cavendish Maxwell’s Oman real estate market performance report, the Sultanate is set to add 5,800 hotel rooms to its current inventory over the next five years, with 35 new hotels and resorts scheduled to open by 2030.

The new rooms will boost current inventory by around 25 per cent.

Oman’s residential real estate inventory grew by 3.6 per cent in 2024, with 38,400 new homes delivered, taking the current supply to around 1.1m units, the report shows.

Most of the residential supply is in Muscat, followed by Al Batinah North and South, and Dhofar.

Expansion of the real estate, infrastructure, hospitality and tourism sectors is part of Oman Vision 2040, which aims for non-oil sectors to account for 90 per cent of the economy by 2040.

By then, Oman’s population, currently 5.3m, is expected to reach 7.7m, driven by increasing numbers of both Omani nationals and expatriates.

More than 80,000 new homes are projected to be delivered between now and 2040.

However, Oman’s rapid population growth could mean a shortfall in residential property supply in the future, despite tens of thousands of new properties in the pipeline, says Cavendish Maxwell, which predicts that another 340,000 new homes would be needed to support a sustainable, 90 per cent occupancy rate.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said: “Oman is undergoing a meaningful economic transformation, with strong momentum in non-oil sectors and a growing population driving demand across real estate and infrastructure.

“Vision 2040 is not just a plan – it’s a commitment to a sustainable, knowledge-driven, globally competitive future. As the country moves forward with the 2040 agenda, stimulating investment in the real estate sector will be of increasing importance.

“Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience, while at the same time supporting national development priorities.

“However, given the possibility of demand outpacing supply, proactive planning will be essential in avoiding a potential shortfall.

“Oman’s tourism sector is also poised for continued, stable growth, with international visitors on the rise and thousands of new hotel rooms in the pipeline. Backed by Government initiatives, growing investor confidence and favourable demographic trends, Oman’s real estate, tourism and hospitality sectors are well positioned for sustained, long-term development.”

Occupancy rates in Oman’s residential sector remain stable, averaging 85.2 per cent across all units.

Villas and Arabic houses maintain a slightly stronger rate of 87.5 per cent, compared to apartments at 80.8 per cent.  Apartment occupancy levels rose 3 per cent in 2024, compared to the previous year.

Integrated Tourism Complexes (ITCs) are set to play a pivotal role in shaping Oman’s future, as, unlike anywhere else in the country, they allow non-Omani nationals to own a freehold property and offer more affordable prices than other key parts of the GCC, with similar rental yields.

In line with Vision 2040, ITCs aim to strengthen the economy and diversify the real estate sector. Several ITCs are under development in key locations like Muscat, Dhofar, South Al Batinah, South Al Sharqiyah and Musandam.

ITC apartment sales prices typically range from OR800 to 1,100 ($2,080-2,860) per square metre – a more accessible rate than other key areas of the GCC.

In Dubai prices range from range from OR1,600 to 2,100 ($4,160-5,450 ) per sq metre; OR1,400 to 1,850 ($3,640-4,800) in Abu Dhabi and OR1,000 to 1,300 ($2,600 – 3,380) in Doha.

Rental yields at Oman’s ITCs, at 5 per cent to 8 per cent, closely match those in Dubai, Abu Dhabi and Doha.

Meanwhile, villa prices range from OR750 to 1,000 ($1,950 – 2,600) per sq m, compared to OR1,400 to 1,850 ($3,640 – 4,800) in Dubai, OR1,350 to 1,750 ($3,500 – 4,550) in Abu Dhabi.

Branded residences are making their mark in Oman, catering to investors and end-users seeking premium living in high end properties. Sales prices vary depending on brand and location.

Current options include La Vie by Tivoli Hotels and Residences, where prices range from OR1,300 to 1,500 ($3,380 – 3,900 ) per sq m; St. Regis by Marriott, at OR2,100 to 2,400 ($5,450 – 6,250); and Mandarin Oriental-branded residences at 2,400 to 2,600 ($6,250 – 6,750).

Tourism is on the increase in Oman, reflecting growing demand and confidence from international visitors and domestic travellers. 

Oman’s four airports handled 14.5m passengers in 2024, a year-on-year increase of 2.5 per cent.

Muscat and Salalah handled 12.9m and 1.5m passengers respectively, highlighting Muscat’s role as the country’s primary air travel hub, and Salalah’s strength as a seasonal destination.

Hotel guests and revenue surpassed pre-pandemic levels in 2024, with 2.15m guests staying at Oman’s three to five star hotels in 2024, a 3.6 per cent jump on 2023. 

Hotel revenue rose 6.1 per cent to OR243 ($631). With guest numbers continuing to rise, Cavendish Maxwell predicts a positive but stable outlook for the country’s tourism sector.

Oman is currently home to around 270 hotels and resorts, with 24,000 rooms between them.  More than half are in the Upscale, Upper-Upscale and Luxury segments. 

Another 5,800 rooms across 35 hotels and resorts are set to come online by 2030, with 54 per cent in the Upper Upscale and Luxury segments, suggesting a shift towards high-value tourism.

Hotel occupancy rose by an average 2.4 per cent in 2024, with the Upper Midscale and Midscale segments seeing the biggest jumps:  11.1 per cent and 8.9 per cent respectively.

Average daily rates  reached OR53.4 ($139), with the Upper Midscale and Midscale sectors recording increases of 3.8 per cent and 5.7 per cent respectively.

This article is originally published in Arbian Business.