Oman to deliver 62,800 residential units by 2030
BUSINESS REPORTER
MUSCAT, MAY 23
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 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. Oman 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 Oman Vision 2040's 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% 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 (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 Oman 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, Al Batinah South, Al Sharqiyah South and Musandam.
HIGHLIGHTS
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.
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