Oman’s Muscat property market recorded average price growth of 18% in 2025 and is maintaining strong momentum through 2026, driven by Gulf investors diversifying beyond saturated Dubai and Abu Dhabi markets, Asian buyers attracted by Oman’s integrated tourism complexes and residency-by-investment programme, and a growing community of expatriate professionals drawn by the Sultanate’s improving business environment and quality of life credentials.
The Muscat real estate cycle is now firmly in an expansion phase, supported by macroeconomic tailwinds — Oman’s fiscal balance has turned positive, government debt is declining, and the IMF projects GDP growth of 4.4% for 2026 — as well as a series of structural reforms under Vision 2040 that have made property ownership by foreigners significantly more accessible than at any point in Oman’s history.
Integrated Tourism Complexes: Foreign Ownership Gateway
Oman’s Integrated Tourism Complexes (ITCs) allow foreigners to own freehold property and obtain residency rights linked to property value — a framework that has attracted buyers from India, the UK, Germany, Russia and China, alongside Gulf nationals seeking a second home in a cooler, less crowded alternative to Dubai. The Wave Muscat, Al Mouj Muscat and Saraya Bandar Jissah are among the ITC developments that have recorded strong sales in 2025–26.
Prices per square metre at premium Muscat ITC developments remain 35–50% below comparable premium developments in Dubai, creating an obvious value argument for buyers who believe Muscat’s infrastructure, lifestyle and economic fundamentals support sustained price appreciation — while offering rental yields of 5–7% annually on furnished units catering to the growing expatriate professional market.
Muscat’s Business Hub Potential
Muscat’s real estate story is increasingly linked to its emerging business hub status. Oman’s Special Economic Zones — including Duqm and Salalah — are attracting significant industrial and logistics investment, creating professional employment that drives residential demand in Muscat and its satellite cities. Oman Air’s network rebuild post-COVID and the country’s improved connectivity are also positioning Muscat as a viable base for professionals working across the wider Gulf region.
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Primary source: Oman’s National Centre for Statistics and Information.
