Modern laws, rising returns drive real estate growth

The Sultanate of Oman is poised for a new phase of real estate growth in 2026, driven by economic diversification, modern legislation, and major urban development projects that solidify its position as a promising investment destination in the region. With rising demand for residential, commercial, and tourism properties, the sector continues to attract local, Gulf, and international investors seeking stable returns and long-term growth opportunities.

Indicators from National Centre for Statistics and Information confirm the market’s prosperity, with the Oman Real Estate Price Index recording a 15.9% increase during the first quarter of 2026 compared to the same period last year, a clear indication of strong demand and continued investment activity.
Furthermore, the value of real estate transactions rose to RO 678.1 million by the end of March 2026, achieving 18.4% year-on-year growth, reflecting the market’s dynamism and investor confidence in the sector’s future.

In the residential real estate sector, the index rose by 17.6%, driven by a 21% increase in residential land prices, a 9% increase in villa prices, and a 4.4% increase in apartment prices. Commercial real estate also saw growth, at 10.5%, due to rising prices for industrial and commercial land.
Muscat Governorate led the real estate growth, topping the list of Omani governorates in terms of residential land price growth, registering a remarkable 43.6% increase during the first quarter of this year. It was followed by Al Buraimi Governorate at 25.9%, Musandam at 17.6%, and Dhofar at 10.8%.

This rapid growth reflects the increasing demand for modern residential projects and integrated communities that offer a sophisticated living environment and comprehensive services for citizens, residents, and investors.
The real estate sector is one of the main beneficiaries of the objectives of Oman Vision 2040, which focuses on diversifying the economy and enhancing the contribution of non-oil sectors such as tourism, logistics, and manufacturing. The expansion in these sectors is expected to increase demand for modern offices, commercial facilities, and staff housing, opening up new investment opportunities with lucrative returns.

The Omani market is witnessing the launch of several major projects combining residential, hospitality, and smart services.
These include integrated tourism complexes, Sultan Haitham City, the AIDA project in Yiti, and Wadi Zaha, in addition to logistics projects linked to special economic zones.

In the Duqm Special Economic Zone, the first phase of the Maysan Square – Duqm Residence project was inaugurated. This phase comprises 104 residential units and 130 commercial units, with investments exceeding 10 million Omani rials and participation from investors from 22 countries.
In a significant step towards developing the real estate environment, Royal Decree No. (56/2026) was issued, promulgating the new Real Estate Registry Law. This law represents a major shift in the sector’s digital transformation and enhances investor confidence.

The law grants full legal validity to electronic records and documents and mandates the registration of real estate ownership rights, thereby enhancing transparency, protecting rights, and increasing the reliability of real estate transactions.
The law also allows for the registration of properties in the names of non-Omanis, companies, and legal entities, subject to regulations.
This strengthens the market’s attractiveness to international investors and boosts the flow of foreign capital.
Ali al Issai, Secretary of the Real Estate Registry in the Ministry of Housing and Urban Planning, stated during the Ministry’s media briefing that the growth witnessed in the real estate and investment sector in the Sultanate of Oman today is a result of the regulatory and planning environment that has strengthened investor confidence and increased the attractiveness of the real estate market.

The Ministry affirmed that the new law constitutes a fundamental pillar for building a more efficient and stable investment environment, supporting real estate development projects, off-plan sales, and future urban expansion.
The Omani government continues to develop the real estate investment system by facilitating ownership procedures for foreigners within integrated tourism complexes and freehold areas.
The market’s attractiveness is further enhanced by the absence of capital gains tax on real estate, in addition to residency programmes linked to real estate investment.

The Omani real estate market is characterised by a diversity of investment opportunities that cater to various investment strategies. Among the most prominent are:
Residential units and integrated complexes: Apartments and villas within integrated tourism complexes are witnessing increasing demand, particularly in modern projects that incorporate smart city and sustainability concepts.
Tourism and Hospitality Properties: With the continued growth of the tourism sector, hotel apartments and coastal resorts in Muscat and Dhofar stand out as some of the sectors offering the highest rental returns.
Offices and Commercial Spaces: The expansion of foreign and local companies is supporting demand for modern offices and commercial spaces in major cities and economic zones.
Logistics and Industrial Properties: This category benefits from the continued growth in ports and special economic zones, particularly in Al Duqm and Suhar, providing long-term investment opportunities.