The issue of housing and living expenses for college and university students in Oman is often a prickly one, particularly with regard to those coming from outside Muscat Governorate. Apartment and student housing prices are high due to inflation in annual rents and the services that must be provided to this group.
The real estate situation has begun to change slightly after several years following the Covid-19 pandemic, which led to a decline in property prices. Official data from the National Centre for Statistics and Information indicates that the residential property price index in the country rose by 7.3% in the first quarter of 2025 compared to the same period last year. Real estate prices also recorded a year-on-year growth of 10.8%.
Despite these price increases, the number of real estate transactions (sales deals) decreased by approximately 2.5% by the end of March 2025 compared to the same period in 2024. Generally, prices are rising, particularly in Muscat Governorate, driven by demand and limited supply in certain categories. However, the number of transactions still indicates that the market needs greater liquidity to stimulate sales in the real estate sector.
The economic factors contributing to the increased demand for student housing in Muscat are related to the scarcity of student accommodation. There is also a lack of dedicated studies addressing this sector. Meanwhile, the demand for student housing, especially in the capital, Muscat, continues due to the growing number of university students.
More than 51,000 students have registered at the Unified Centre for Higher Education Admissions for the current academic year 2025/2026. The number of students in both public and private universities is also growing nationwide, coinciding with the increasing number of high school graduates.
Consequently, the demand for housing near universities, or in affiliated private residences is rising leading to high demand for furnished apartments and rooms, or for shared accommodation.
Locations in Muscat with well-developed infrastructure and related services; and proximity to universities and educational institutions, see increased demand. This makes nearby housing important for reducing commuting costs and time, making these areas more attractive for student housing and thus increasing demand.
Some real estate developers believe that the demand for university housing exceeds the supply in certain locations near universities, driving up rents. Others see this as an investment opportunity, given students' desire for ready-made accommodation close to campus, with essential services such as internet, security, cleaning and easy access to transportation.
This type of housing is more expensive, which raises the average rent. Furthermore, the influx of international students increases rental prices and demand for units designated for local students. Furthermore, residential units require extensive annual maintenance due to the large number of people living in a single building, necessitating significant funds for routine upkeep.
Some believe it is crucial to have data on the number of students who will be enrolling in universities well in advance. This would allow investors in the sector to develop the necessary student housing units. Additionally, the Ministry of Housing and Urban Planning could lease residential land to those wishing to build such student accommodations in the future, thus addressing these challenges and providing students with the necessary housing near their universities.
With economic diversification and the establishment of private and international universities, or branches of foreign universities, the demand for students from outside Muscat Governorate and even from outside Oman increases, further driving up the demand for temporary or educational housing.
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