Oman on track to deliver 62,800 residential units by 2030

Times of Oman

6 days ago

Muscat: The Sultanate of 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 to new insight from leading real estate and advisory consultant, Cavendish Maxwell.
According to Cavendish Maxwell's Oman real estate market performance report, published this week during Oman Design and Build Week, Oman 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%.
Oman's residential real estate inventory grew by 3.6% in 2024, with 38,400 new homes delivered, taking the current supply to around 1.1 million 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% of the economy by 2040. By then, Oman's population - currently 5.3 million - is expected to reach 7.7 million, 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% 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 trends
Occupancy rates in Oman's residential sector remain stable, averaging 85.2% across all units. Villas and Arabic houses maintain a slightly stronger rate of 87.5%, compared to apartments at 80.8%. Apartment occupancy levels rose 3% in 2024, compared to the previous year.
Integrated Tourism Complexes
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 800 to 1,100 OMR per square metre - a more accessible rate than other key areas of the GCC, where prices in Dubai range from 1,600 to 2,100 OMR/sq metre; 1,400 to 1,850 in Abu Dhabi and 1,000 to 1,300 in Doha. Rental yields at Oman's ITCs, at 5% to 8%, closely match those in Dubai, Abu Dhabi and Doha. Meanwhile, villa prices range from 750 to 1,000 OMR/sq metres, compared to 1,400 to 1,850 in Dubai, 1,350 to 1,750 in Abu Dhabi.
Branded residences
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 1,300 to 1,500 OMR/sq metre; St. Regis by Marriott, at 2,100 to 2,400; and Mandarin Oriental-branded residences at 2,400 to 2,600.
Oman tourism sector
Tourism is on the increase in Oman, reflecting growing demand and confidence from international visitors and domestic travellers. Oman's four airports handled 14.5 million passengers in 2024 - a year-on-year increase of 2.5%. Muscat and Salalah handled 12.9 million and 1.5 million 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 2.15 million guests staying at Oman's 3-5 star hotels in 2024 - a 3.6% jump on 2023. Hotel revenue rose 6.1% to 243 OMR. 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% in the Upper Upscale and Luxury segments, suggesting a shift towards high-value tourism.
Hotel occupancy rose by an average 2.4% in 2024, with the Upper Midscale and Midscale segments seeing the biggest jumps: 11.1% and 8.9% respectively. Average Daily Rates - ADRs - reached 53.4 OMR, with the Upper Midscale and Midscale sectors recording increases of 3.8% and 5.7% respectively.