Two new projects announced in Oman
Muscat: The Oman Real Estate Conference and Exhibition and Design & Build Week began under the patronage of His Highness Sayyid Belarab bin Haitham bin Tarik at the Oman Convention and Exhibition Center, during which two projects were announced - A'Thuraya City and the Al Jabal Al Aali Project.
Al Thuraya City was launched in the Wilayat of Bawshar as a smart city, and the first phase includes more than 2,600 housing units distributed across eight integrated neighborhoods, accommodating more than 8,000 people.
The city was designed according to quality of life standards and smart urban planning, adopting low-carbon environmental solutions.
At an altitude of 2,400 meters above sea level, the Al Jabal Al Aali Project was launched as a unique global mountain destination.
It spans an area of 11.8 square kilometers and includes three main villages accommodating more than 10,000 people.
The project combines luxury, a connection to nature, and a diverse cultural and living experience.
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Muscat Daily
24-05-2025
- Muscat Daily
Oman set to deliver 62,800 residential units, 5,800 new hotel rooms by 2030
Muscat – Oman is set to deliver 62,800 new residential property units by 2030, with 5,500 expected to come to market this year, in line with the country's strategic vision, according to new insight report from leading real estate and advisory consultancy, Cavendish Maxwell. According to Cavendish Maxwell's Oman Real Estate Market Performance report, published last week during Oman Design and Build Week, the sultanate is expected 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 increase existing capacity by approximately 25%. Oman's residential property inventory grew by 3.6% in 2024, with 38,400 new homes delivered, bringing the current supply to around 1.1mn units, the report showed. Most of this housing stock is located in Muscat, followed by Al Batinah North and South, and Dhofar. Expansion of the real estate, infrastructure, hospitality, and tourism sectors is a core component of Oman Vision 2040, which seeks to have non-oil sectors contribute 90% of the national economy by 2040. By that time, Oman's population – currently 5.3mn – is projected to reach 7.7mn, driven by growth in both Omani nationals and expatriates. Over 80,000 new homes are forecast to be delivered between now and 2040. However, Oman's rapid population growth could result in a future shortfall in housing stock, despite tens of thousands of new properties in the pipeline, said Cavendish Maxwell. The consultancy estimates that an additional 340,000 new homes will be required 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,' he said. '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,' Zadjali added. Occupancy trends According to Cavendish Maxwell, occupancy rates in Oman's residential sector remain stable, averaging 85.2% across all units. Villas and Arabic-style houses maintain a slightly stronger rate of 87.5%, compared to apartments at 80.8%. Apartment occupancy levels increased by 3% in 2024 compared to the previous year. Integrated Tourism Complexes (ITCs) are expected to play a pivotal role in shaping Oman's future, as they are the only locations in the country where non-Omani nationals may own freehold property. These developments also offer more accessible pricing compared to other key parts of the GCC, while delivering comparable rental yields. In line with Vision 2040, ITCs aim to bolster the economy and diversify the real estate sector. Several ITCs are currently under development in strategic locations such as Muscat, Dhofar, South Al Batinah, South Al Sharqiyah, and Musandam. According to the report, ITC apartment sale prices in Oman typically range from RO800 to RO1,100 per square metre – a more accessible rate than in other leading GCC cities, where prices in Dubai range from RO1,600 to RO2,100 per square metre; RO1,400 to RO1,850 in Abu Dhabi; and RO1,000 to RO1,300 in Doha. Rental yields at Oman's ITCs, at 5% to 8%, closely mirror those in Dubai, Abu Dhabi, and Doha. Meanwhile, villa prices range from RO750 to RO1,000 per square metre, compared to RO1,400 to RO1,850 in Dubai and RO1,350 to RO1,750 in Abu Dhabi. Tourism sector growth Tourism in Oman continues to grow, reflecting rising demand and confidence among both international visitors and domestic travellers. Oman's four airports handled 14.5mn passengers in 2024 – a year-on-year increase of 2.5%. Muscat and Salalah accounted for 12.9mn and 1.5mn passengers respectively, underlining Muscat's role as the primary air travel hub and Salalah's significance as a seasonal destination. Hotel guest numbers and revenues surpassed pre-pandemic levels in 2024, with 2.15mn guests staying at Oman's 3- to 5-star hotels – a 3.6% increase on 2023. With visitor numbers continuing to rise, Cavendish Maxwell forecasts a positive, stable outlook for the country's tourism sector. According to the report, Oman currently has approximately 270 hotels and resorts, offering around 24,000 rooms. More than half fall into the Upscale, Upper-Upscale, and Luxury categories. A further 5,800 rooms across 35 hotels and resorts are set to be added by 2030, with 54% of them in the Upper-Upscale and Luxury segments, indicating a shift towards high-value tourism.
Observer
21-05-2025
- Observer
Developers seek solutions to real estate challenges
MUSCAT, MAY 21 The real estate market in the Sultanate of Oman has witnessed notable activity in recent years, particularly with the launch of Smart City projects such as Sultan Haitham City, and integrated residential neighbourhoods under the 'Sorouh' initiative, all of which aim to provide a comprehensive urban environment aligned with the goals of Oman Vision 2040. However, this momentum faces several obstacles that threaten the pace of growth and investment in this vital sector chief among them being weak purchasing power among citizens, high construction costs, and land development challenges. In this context, the Observer spoke with several prominent real estate developers during the 20th Oman Real Estate Conference and Design and Build Week, where they outlined the major issues confronting the sector and proposed realistic solutions to enhance market efficiency. FINANCING: THE MAIN BOTTLENECK Nasser Al Badi, General Manager of Al Badi Investment Group, emphasized that the concept of integrated residential neighborhoods, introduced by the Ministry of Housing and Urban Planning about four years ago, marked a qualitative leap in the housing sector, with the pilot project 'Hayy Al Naseem' initially showing strong sales. However, he noted that it soon faced marketing difficulties due to citizens' limited access to financing. 'It's unrealistic to expect citizens to purchase homes costing between RO 25,000 and 50,000 when their monthly income barely covers basic needs. Banks lend to those earning RO 325 a month, then deduct OMR 150 in repayments—how can someone live on the remaining amount?' Al Badi lamented. He clarified that the problem isn't with the integrated neighborhood concept itself, but with the absence of financing mechanisms that align with citizens' incomes. He proposed long-term loans extending up to 50 years, with monthly deductions capped at 20–25% of income to ensure a dignified standard of living without overwhelming debt. Qais al Bahri, CEO of Dream Villa, described housing finance as the 'fundamental dilemma,' stating that the challenge isn't legal but financial—where loan ceilings are not in line with citizen incomes or current property prices. He suggested that collaboration with banks, as seen in Saudi Arabia, could create holistic financing solutions. RISING CONSTRUCTION COSTS The rising prices of construction materials, along with permitting and approval fees, have created additional pressure on both developers and buyers. Al Badi explained: 'To start a project, we have to pay thousands—RO 7,000 for mining approvals, RO 3,000 for environmental permits, and RO 18,000 for civil defense clearance. These fees ultimately inflate property prices.' Al Bahri attributed the increase to global factors beyond local control, stressing that reducing construction quality to cut costs is not an acceptable solution. MORE REGULATORY REFORMS NEEDED Both developers acknowledged notable progress in real estate laws over recent years. According to Al Bahri, the Ministry of Housing has become more flexible, offering easier eligibility for housing ownership. For instance, citizens can now purchase property even outside their native governorates, and support can reach up to RO 30,000 or even RO 50,000. Al Badi praised the Ministry's escrow account system, which he described as an important regulatory measure that helps prevent real estate fraud. ABUNDANT LAND BUT LIMITED INFRASTRUCTURE Commenting on claims of land scarcity in some governorates, Al Badi denied there is a shortage of land, stating: 'We have thousands of unused plots, but the real issue lies in the lack of infrastructure—areas without water, sewage, or electricity.' Al Bahri agreed, noting that 'owning land is not enough. The land must be livable with access to essential services, and this is what the Ministry has been focusing on recently.' Al Badi proposed a different approach to stimulate the real estate market, one that goes beyond direct subsidies. He suggested allowing expatriates and their families to reside and own property. 'The demand for housing is low because the population isn't large enough to drive the market. If we allowed expatriate families to settle and rent homes, thousands of apartments would be occupied, and local markets would flourish, similar to what we've seen in Dubai and Riyadh,' he explained. Oman's real estate sector currently struggles with a disconnect between strong government planning and the citizen's financial ability to keep up. While regulations have become more flexible, financial constraints remain the core issue—requiring joint intervention by the government and the banking sector to ensure the continuity of development projects and restore market balance between supply and demand. In light of these challenges, proposed solutions such as expanding banking options, reducing government fees, and increasing population density through inclusive residency policies may offer new opportunities for this vital sector in shaping Oman's urban and economic future.
Muscat Daily
19-05-2025
- Muscat Daily
Flagship cities unveiled in Jabal Akhdar, Bausher
Muscat – The Oman Real Estate Conference and Exhibition held alongside Design and Build Week kicked off on Monday under the patronage of H H Sayyid Bilarab bin Haitham al Said. A highlight of the opening day was the signing of nine strategic partnership and development agreements worth over RO2.3bn. During the opening ceremony, H H Sayyid Bilarab inaugurated two flagship projects – Al Thuraya City in Bausher, envisioned as a smart urban hub, and Al Jabal al Aali in Jabal Akhdar, designed as a global mountain tourism destination. Valued at RO 1.2bn, the Al Jabal al Aali project marks a major milestone in real estate and tourism investment in Jabal Akhdar. A partnership agreement was also signed for development of a health district within the project's Western Village with an investment of RO200mn. Covering 630,000sqm, the district will feature 500 residential and hotel units with total built-up area exceeding 100,000sqm reinforcing the project's positioning as an integrated health and ecotourism destination. Al Jabal al Aali in Jabal Akhdar Set 2,400m above sea level on the Hajar mountains, the 11.8sqkm Al Jabal Al Aali project boasts temperate climate, stunning vistas, and rich ecological diversity. It will offer over 2,500 residential units across three neighbourhoods and is expected to accommodate 10,000 residents. The project will include more than 2,000 hotel rooms and facilities capable of hosting up to 30,000 visitors during major events. Meanwhile, Al Thuraya City will be developed in three phases. Phase 1 spans more than 3mn sqm with total built-up area exceeding 831,000sqm. It will house over 8,000 people in 2,600 residential units across eight integrated neighbourhoods, featuring retail outlets, a 400-room hotel, schools, clinics, mosques, community centres, parks and sports facilities. Phase 2 will cover 3.6mn sqm and include 3,600 residential units across three neighbourhoods. An international design competition will be held as part of Phase 3 aimed at shaping the city's sustainable urban vision. A partnership agreement worth over RO240mn was signed at the conference to develop District No 6, a key neighbourhood within Phase 1 of Al Thuraya City in Bausher. Developed by Tathmeer Properties, the district will cover 285,000sqm and feature 1,000 residential units. Additionally, tenders worth RO13mn were awarded for landscaping, levelling and engineering consultancy works for Phase 1 of Al Thuraya City. Organised by Ministry of Housing and Urban Planning in collaboration with Oman Real Estate Association and Connect Company, the conference is one of the sultanate's leading platforms to promote investment opportunities and advance the real estate and construction sectors.
