MUSCAT: Oman’s real estate market witnessed robust growth in the latest period, with the residential sector driving most of the gains. Villa prices surged by 17.6 percent, making them the strongest performers, while residential land prices rose 11.3 percent. Apartment values increased 9.7 percent, and other types of homes edged higher by 1.7 percent. Analysts attribute this growth to strong domestic demand, favorable financing options, and ongoing urban development initiatives aimed at enhancing housing availability and quality across the Sultanate.
The commercial property sector also saw notable gains, with an overall increase of 8.8 percent in the index. Commercial land prices climbed 7.3 percent, retail property values increased by 4.1 percent, and industrial land registered the steepest rise at 16.1 percent. Experts suggest that this growth is tied to expanding business activity, rising investment in industrial zones, and the development of modern retail and logistics infrastructure, positioning Oman as an attractive commercial investment destination.
At the governorate level, Muscat experienced the most significant gains, with residential land prices jumping 38.1 percent, the highest nationwide. Other regions such as Al Dakhiliyah, South Al Batinah, Musandam, and South Al Sharqiyah also saw positive trends, albeit at lower percentages. These variations highlight regional differences in development demand, urbanization rates, and strategic investment in residential projects, reflecting the Sultanate’s broader efforts to balance housing growth across all governorates.
However, not all regions mirrored this upward trend. Al Buraimi recorded the sharpest decline, with residential land prices falling by 37.7 percent. Al Wusta and Al Dhahirah saw decreases of 24.7 percent and 24.2 percent, respectively, while Dhofar, North Al Batinah, and North Al Sharqiyah experienced milder drops. Market analysts note that these declines are influenced by limited local demand, slower infrastructure projects, and regional economic conditions, suggesting that targeted policy measures may be necessary to stabilize property values in these areas.
