Oman’s real estate market is teeming with townships and residential units. In fact, the construction of numerous projects is underway. However, despite the supply of superior quality residential units, the property prices are on a decline. This begs a pertinent question – Is the Sultanate’s real estate market losing its foothold?
Oman’s Real Estate Scene
Oman has several impressive residential villas, townships, and units, to offer. Some areas have even become hotspots of sorts. Al Mouj Muscat’s township, for instance, has become a prime real estate locale. Its latest addition, the Ghadeer villas, have experienced strong demands. Whilst the already well-established Muscat Hills, Al Hail township, and Madinat Ilam, remain comfortable with their tenant intake.
The reach of the real estate development project has spread substantially in Oman. Tasmim real estate is set to construct its Habitat residential and commercial complex in Al Khuwair, located close to central Muscat. While the buzz-worthy Little India project has broken ground in Duqm, the recently developed special economic zone in Oman. The Sultanate’s real estate developers are not shy to explore the potential of areas that were previously uninhabited.
Oversupply – No Demand
A pressing issue for the real estate market in Oman is perhaps the oversupply of properties. Quite simply, the market may be oversaturated. The economic downturn, on the other hand, has led to a growing decline in the demand for freeholding properties. Investors may even be wary of buying these properties because of the lack of tenancy and no guarantee for a sound resale value of the estate in the future.
In order to tackle these hurdles, the Government of Oman has introduced a couple of solutions. With a lull in the investment by Omani locals, expats and foreign investors are the most reliable bet. The Government has relaxed its ownership policies, expanding the designated areas open to foreign investment. The Big Little India project, for instance, has been built specifically to cater to expats living in Oman. Some residencies, like Muscat Bay, have also offered flexible and interest-free payment plans, to coax its potential buyers.
Oman’s real estate market seems to be tiding on despite the economic slump. The Sultanate’s economic diversification in the form of emerging freeholding properties and real estate investments, given the application of right strategies, may outperform several other sectors.