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The Sultanate of Oman is poised to deliver 62,800 new residential real estate units by 2030, with 5,500 set to come to market this year, in line with the country’s strategic vision, according to new insight from leading real estate and advisory consultancy, Cavendish Maxwell.
According to the firm’s Oman Real Estate Market Performance Report, released during Oman Design and Build Week, Oman will also add 5,800 hotel rooms over the next five years, with 35 new hotels and resorts scheduled to open by 2030. This will boost the current hotel inventory by around 25 per cent.
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Housing inventory and distribution
Oman’s residential real estate inventory grew by 3.6 per cent in 2024, with 38,400 new homes delivered, bringing the total supply to approximately 1.1 million units. Most of the residential supply is located in Muscat, followed by Al Batinah North and South, and Dhofar.
This expansion supports Oman Vision 2040, which targets 90 per cent of the national economy being driven by non-oil sectors by 2040. The population, currently at 5.3 million, is projected to reach 7.7 million by then, driven by both Omani nationals and expatriates. Over 80,000 new homes are expected to be delivered between now and 2040.
Demand to outpace supply?
Despite the pipeline of tens of thousands of new properties, Cavendish Maxwell warns of a possible shortfall in supply, citing rapid population growth. The consultancy estimates that 340,000 new homes will be required to maintain a sustainable 90 per cent occupancy rate in the long term.
“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,” Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said.
“As the country advances with the 2040 agenda, stimulating investment in the real estate sector will be increasingly important. Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience. However, given the possibility of demand outpacing supply, proactive planning will be essential to avoid a potential shortfall,” Al Zadjali added.
Occupancy rates holding strong
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 occupancy rate at 87.5 per cent, compared to apartments at 80.8 per cent. Apartment occupancy levels rose by 3 per cent in 2024 compared to the previous year.
Integrated Tourism Complexes a key driver
Integrated Tourism Complexes (ITCs) are playing a key role in shaping Oman’s real estate future. These are the only areas where non-Omani nationals can own freehold property and are typically priced more affordably than comparable locations in the GCC, while offering similar rental yields.
Aligned with Vision 2040, ITCs aim to support economic diversification. Key ITCs are under development in Muscat, Dhofar, South Al Batinah, South Al Sharqiyah, and Musandam.
Apartment sales in ITCs generally range from OMR800 to OMR1,100 per square metre, compared to 1,600–2,100 in Dubai, 1,400–1,850 in Abu Dhabi, and 1,000–1,300 in Doha. Rental yields at Oman’s ITCs range from 5 to 8 per cent, comparable to GCC peers. Villa prices range from OMR750 to OMR1,000 per square meter, again lower than Dubai (1,400–1,850) and Abu Dhabi (1,350–1,750).
Branded residences gaining traction
Branded residences are increasingly popular, offering premium options for investors and residents. Notable developments include:
- La Vie by Tivoli Hotels and Residences: OMR1,300–1,500 per square meter
- St. Regis by Marriott: OMR2,100–2,400 per square metre
- Mandarin Oriental Residences: OMR2,400–2,600/sq metre
Tourism on the rise
Oman’s tourism sector continues to grow, with strong demand from both international and domestic travellers. In 2024, the country’s four airports handled 14.5 million passengers – a 2.5 per cent year-on-year increase. Muscat led with 12.9 million passengers, while Salalah managed 1.5 million, underscoring its status as a seasonal destination.
Hotel sector outperforms pre-pandemic levels
Oman’s hotels welcomed 2.15 million guests in 2024 – a 3.6 per cent increase from 2023. Hotel revenues rose by 6.1 per cent to OMR243. Cavendish Maxwell forecasts a positive but stable outlook for the tourism sector.
The country currently has around 270 hotels and resorts, offering 24,000 rooms, more than half of which fall into the Upscale, Upper-Upscale, or Luxury segments. An additional 5,800 rooms across 35 hotels are planned by 2030, with 54 per cent in the higher-end segments, indicating a pivot towards premium tourism.
Hotel performance metrics improving
Hotel occupancy rose by an average of 2.4 per cent in 2024. The Upper Midscale and Midscale segments saw the highest gains – 11.1 per cent and 8.9 per cent respectively. Average Daily Rates (ADRs) reached OMR53.4, with Upper Midscale and Midscale hotels seeing ADR increases of 3.8 and 5.7 per cent respectively.
