Muscat: While setting conditions for ownership of real estate properties by non-Omanis, the Ministry of Housing and Urban Planning affirmed that the move will not affect the privacy of Omani society and its culture.
“Ownership of properties or investments by foreigners will be limited to certain specified areas. The privacy of Omani society and its demographics are of prime importance”, said an official at the ministry.
According to the regulations issued by the ministry, the assigned units, based on a usufruct system, in any building for non-Omanis must not exceed 40 cent of the residential units. This is in addition to limiting the number of buyers of one foreign nationality to a maximum of 20 per cent of the residential units.
The new usufruct properties, said the official, will result in a competitive business environment that will attract investments in the real estate sector increasing its contribution to the national economy.
The usufruct period can last for up to 50 years, and later be extended for a 99-year span.
A recent introductory workshop organized by the Ministry of Housing and Urban Planning dealt in detail on the ownership rights for non-Omanis under the usufruct system for expats in multi-storied residential and commercial buildings.
According to the regulations discussed at the workshop unless represented by the Department of Regulating Offices and Real Estate Brokers, the property owned by a non-Omani cannot be disposed of until the expiry of four years his residence permit in the Sultanate has expired.
At the same time, the owners reserve the right to engage mediators like a law firm, a realtor, or the like, to manage, rent, or oversee their assets, even if they are staying out of the Sultanate, but the unit cannot be mortgaged for the sole purpose of financing.
The regulations also stipulate that only one unit can be owned by any individual. Non-Omanis, who buy under the usufruct system, can share ownership with their parents, siblings or children. They can also transfer usufruct rights to their legal heirs.
While the building should have at least four floors, each flat must consist of at least two rooms, with utilities. The regulations also require that the real estate property on sale is not older than four years from the date of the completion certificate. The building must have at least four residential floors, and that the building must be located within the areas determined by the ministry.
The property price offered for sale to a non-Omani shall not be less than RO 35,000 in any of the governorates, except the Governorate of Muscat, where the price should be above RO 45,000.
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