Significant uptick in real estate transactions last year: ORA
Published: 03:03 PM,Mar 01,2025 | EDITED : 07:03 PM,Mar 01,2025
The Oman Real Estate Association (ORA) held its annual meeting at the weekend.
The Oman Real Estate Association (ORA) has outlined plans to organise a conference and exhibition during the upcoming Khareef Dhofar events. It is also discussing with a consultancy firm the preparation of a study on the impact of value-added tax (VAT) on real estate transactions. This announcement was made during the association’s annual meeting, held at W Muscat Hotel on Thursday, attended by association members, officials from the Ministry of Housing and Urban Planning, real estate sector stakeholders, and media representatives.
The meeting featured discussions on real estate market developments, challenges in real estate financing, and initiatives aimed at diversifying housing options and facilitating access for citizens. These efforts are expected to sustain the sector’s positive impact.
Younis bin Khasib al Harrasi, ORA Chairman, stated that civil society organisations serve as comprehensive work platforms that aim to promote sustainable development. They are a fundamental component of civil work in any modern state, and their effectiveness depends on the efforts of each member.
He emphasised that the real estate sector witnessed significant momentum last year, with a noticeable increase in transaction volumes, reflecting investor confidence and the sector’s ability to maintain strong growth. He noted that various regulatory improvements and measures have positively stimulated real estate activity, increasing demand. He stressed that initiatives to diversify housing options and facilitate access for citizens would contribute to sustaining this positive impact. Furthermore, when such initiatives are accompanied by streamlined processes for obtaining serviced residential lands or financial support for eligible individuals wishing to own properties within development projects, it would not only drive market growth but also enhance social security and citizens’ well-being.
He added that with the continued positive momentum and the recent announcement by the Central Bank of Oman regarding updated regulatory measures, which have made RO 4.5 billion available to banks for housing and construction loan financing, there is great anticipation for a swift and effective response from financial institutions. This would enhance citizens’ ability to own properties, thereby supporting the real estate market and elevating transaction levels, with far-reaching effects on supply chains and the national economy. To maximise the positive impact of financial solutions, it is essential that funding initiatives also extend to companies operating in the real estate sector. Many of the financing initiatives introduced in recent years have not included real estate companies, despite the sector’s extensive projects, economic significance, and ability to create diverse employment opportunities for Omanis—whether through direct employment, business contracts, or opportunities for Omani entrepreneurs.
Al Harrasi further explained that the Oman Real Estate Association has been actively engaging with various partners through initiatives and activities aimed at raising awareness, strengthening the role of real estate companies, contributing to sector-related strategic plans, and providing input on legal and regulatory projects. He highlighted the association’s partnership with the Ministry of Housing and Urban Planning and Connect Company in organising the Oman Real Estate Conference and Exhibition. He also mentioned the association’s initiatives concerning VAT on real estate transactions, particularly on first-time sales of residential properties. In collaboration with a consultancy firm, the association is exploring the possibility of conducting a study on this matter to provide professional recommendations to the Tax Authority, aligned with regional best practices. The goal is to introduce measures that would ease the financial burden on homebuyers and mitigate the rising cost of living.
Al Harrasi announced the association’s plans to organise an annual real estate exhibition and conference in Salalah during the Khareef season. He emphasised that Dhofar Governorate has exceptional potential that needs to be highlighted and optimally utilised. The event will be held in collaboration with various stakeholders, including the Dhofar Governor’s Office, the Ministry of Housing and Urban Planning, and Dhofar Municipality, among others.
Engineer Khalid bin Nasser Al-Mahrouqi, Director General of Real Estate Development at the Ministry of Housing and Urban Planning, stated that the ministry will launch a new data platform to guide investors in the real estate sector. The first phase of the platform will provide limited information.
He pointed out that the “Tameer” platform serves as the primary mechanism for dealing with all real estate developers in Oman. The Oman Real Estate Association has played a role in educating developers about its importance. He emphasised that any developer selling off-plan properties without opening an escrow account is in violation of regulations and will be referred to the Public Prosecution.
He also highlighted the presence of hidden commercial activities in the real estate development sector, revealing that over 500 companies engaged in real estate development are not registered with either the Ministry of Housing and Urban Planning or the Oman Real Estate Association. As a result, numerous legal cases related to this issue are currently being handled in the courts.
Al-Mahrouqi further noted that more than 900 homeowners’ associations are registered in Oman, a positive indicator. However, 20% of these associations face challenges, and the ministry is working on correcting their governance and improving the electoral process within them.
Ali Al Aisai, Registrar of the Real Estate Register at the Ministry of Housing and Urban Planning, spoke about the Real Estate Registry Office, explaining that the Urban Observatory is a collection of data that assists decision-makers and urban planners. He mentioned the ministry’s initiative to delegate real estate registry-related documentation to real estate brokerage firms in collaboration with the Ministry of Labour. This initiative is expected to generate 300-400 job opportunities across Oman.
He highlighted that Oman’s real estate development sector is still evolving compared to other countries. He also confirmed that the Real Estate Regulation Law has now reached the State Council and has been formulated with input from all relevant stakeholders. The ministry is open to further discussions to ensure consensus on the executive regulations of the law. He stressed the importance of awareness to overcome challenges in the real estate sector, noting that the regulations will cover property valuation and real estate brokerage.
Al Aisai also pointed out that real estate brokerage is set to become a regulated profession with a structured evaluation system. Additionally, property valuation offices offer significant opportunities for Omanis, with training institutes providing certification courses in property valuation. Moving forward, the ministry aims to govern the real estate sector and explore more employment opportunities for Omanis.
When asked about fraudulent activities in the sector, he assured that the ministry has mechanisms to enforce regulations and curb fraud in real estate transactions.
Dr Matar al-Buraiki, Director of Homeowners' Associations at the Ministry of Housing and Urban Planning, stated that the ministry will implement new measures to reduce developers’ influence over homeowners’ associations and streamline their election processes.
The meeting featured discussions on real estate market developments, challenges in real estate financing, and initiatives aimed at diversifying housing options and facilitating access for citizens. These efforts are expected to sustain the sector’s positive impact.
Younis bin Khasib al Harrasi, ORA Chairman, stated that civil society organisations serve as comprehensive work platforms that aim to promote sustainable development. They are a fundamental component of civil work in any modern state, and their effectiveness depends on the efforts of each member.
He emphasised that the real estate sector witnessed significant momentum last year, with a noticeable increase in transaction volumes, reflecting investor confidence and the sector’s ability to maintain strong growth. He noted that various regulatory improvements and measures have positively stimulated real estate activity, increasing demand. He stressed that initiatives to diversify housing options and facilitate access for citizens would contribute to sustaining this positive impact. Furthermore, when such initiatives are accompanied by streamlined processes for obtaining serviced residential lands or financial support for eligible individuals wishing to own properties within development projects, it would not only drive market growth but also enhance social security and citizens’ well-being.
He added that with the continued positive momentum and the recent announcement by the Central Bank of Oman regarding updated regulatory measures, which have made RO 4.5 billion available to banks for housing and construction loan financing, there is great anticipation for a swift and effective response from financial institutions. This would enhance citizens’ ability to own properties, thereby supporting the real estate market and elevating transaction levels, with far-reaching effects on supply chains and the national economy. To maximise the positive impact of financial solutions, it is essential that funding initiatives also extend to companies operating in the real estate sector. Many of the financing initiatives introduced in recent years have not included real estate companies, despite the sector’s extensive projects, economic significance, and ability to create diverse employment opportunities for Omanis—whether through direct employment, business contracts, or opportunities for Omani entrepreneurs.
Al Harrasi further explained that the Oman Real Estate Association has been actively engaging with various partners through initiatives and activities aimed at raising awareness, strengthening the role of real estate companies, contributing to sector-related strategic plans, and providing input on legal and regulatory projects. He highlighted the association’s partnership with the Ministry of Housing and Urban Planning and Connect Company in organising the Oman Real Estate Conference and Exhibition. He also mentioned the association’s initiatives concerning VAT on real estate transactions, particularly on first-time sales of residential properties. In collaboration with a consultancy firm, the association is exploring the possibility of conducting a study on this matter to provide professional recommendations to the Tax Authority, aligned with regional best practices. The goal is to introduce measures that would ease the financial burden on homebuyers and mitigate the rising cost of living.
Al Harrasi announced the association’s plans to organise an annual real estate exhibition and conference in Salalah during the Khareef season. He emphasised that Dhofar Governorate has exceptional potential that needs to be highlighted and optimally utilised. The event will be held in collaboration with various stakeholders, including the Dhofar Governor’s Office, the Ministry of Housing and Urban Planning, and Dhofar Municipality, among others.
Engineer Khalid bin Nasser Al-Mahrouqi, Director General of Real Estate Development at the Ministry of Housing and Urban Planning, stated that the ministry will launch a new data platform to guide investors in the real estate sector. The first phase of the platform will provide limited information.
He pointed out that the “Tameer” platform serves as the primary mechanism for dealing with all real estate developers in Oman. The Oman Real Estate Association has played a role in educating developers about its importance. He emphasised that any developer selling off-plan properties without opening an escrow account is in violation of regulations and will be referred to the Public Prosecution.
He also highlighted the presence of hidden commercial activities in the real estate development sector, revealing that over 500 companies engaged in real estate development are not registered with either the Ministry of Housing and Urban Planning or the Oman Real Estate Association. As a result, numerous legal cases related to this issue are currently being handled in the courts.
Al-Mahrouqi further noted that more than 900 homeowners’ associations are registered in Oman, a positive indicator. However, 20% of these associations face challenges, and the ministry is working on correcting their governance and improving the electoral process within them.
Ali Al Aisai, Registrar of the Real Estate Register at the Ministry of Housing and Urban Planning, spoke about the Real Estate Registry Office, explaining that the Urban Observatory is a collection of data that assists decision-makers and urban planners. He mentioned the ministry’s initiative to delegate real estate registry-related documentation to real estate brokerage firms in collaboration with the Ministry of Labour. This initiative is expected to generate 300-400 job opportunities across Oman.
He highlighted that Oman’s real estate development sector is still evolving compared to other countries. He also confirmed that the Real Estate Regulation Law has now reached the State Council and has been formulated with input from all relevant stakeholders. The ministry is open to further discussions to ensure consensus on the executive regulations of the law. He stressed the importance of awareness to overcome challenges in the real estate sector, noting that the regulations will cover property valuation and real estate brokerage.
Al Aisai also pointed out that real estate brokerage is set to become a regulated profession with a structured evaluation system. Additionally, property valuation offices offer significant opportunities for Omanis, with training institutes providing certification courses in property valuation. Moving forward, the ministry aims to govern the real estate sector and explore more employment opportunities for Omanis.
When asked about fraudulent activities in the sector, he assured that the ministry has mechanisms to enforce regulations and curb fraud in real estate transactions.
Dr Matar al-Buraiki, Director of Homeowners' Associations at the Ministry of Housing and Urban Planning, stated that the ministry will implement new measures to reduce developers’ influence over homeowners’ associations and streamline their election processes.