MUSCAT: Oman’s real estate sector is entering 2026 on a firmer footing, marked by a clear shift from speculative expansion to quality-driven, income-generating assets, according to the latest insights from Hamptons International. The market is showing “measured momentum”, supported by economic reforms and diversification initiatives under Oman Vision 2040.
The industrial and logistics segment has emerged as the standout performer, underpinned by the Sultanate of Oman’s growing role as a regional trade and logistics hub. Demand for warehousing, cold storage and build-to-suit facilities remained strong through late 2025, particularly in Suhar and Al Duqm. Modern industrial assets in Muscat are leading returns, with average gross yields reaching around 10 per cent, positioning the segment as one of the most attractive for investors heading into 2026.
Tourism-linked real estate is also gaining traction, reflecting the country’s diversification strategy. Hospitality revenues rose to approximately RO 297.3 million in 2025, up from RO 243.3 million a year earlier, supported by rising visitor numbers and a shift towards high-value tourism offerings. Premium developments, including mountain and eco-tourism destinations, are driving higher average daily rates, while Muscat continues to benefit from stable business travel demand.
In the residential segment, integrated lifestyle communities continue to outperform. Integrated Tourism Complexes (ITCs), such as Al Mouj Muscat, command rental premiums of around 10 to 15 per cent compared to standalone properties, supported by strong amenities and professional management. Residential developments offering facilities are generating yields of about 9 per cent, reflecting sustained end-user demand.
The office market, meanwhile, remains tenant-friendly overall, although demand for Grade A space is strengthening. Prime office rents in locations such as Al Mouj have reached approximately RO 7.5 per square metre, while older, secondary stock faces increasing pressure to upgrade amid evolving tenant expectations and ESG considerations.
Looking ahead, the outlook for the first half of 2026 remains cautiously optimistic. Investment activity is expected to stay selective, with a growing preference for assets offering stable income streams and long-term value. While capital values are likely to remain broadly steady, the market is increasingly rewarding high-quality developments aligned with urban regeneration and sustainability goals.
With controlled inflation, improving liquidity and continued infrastructure investment, Oman is reinforcing its position as a stable and defensive real estate market in the region.
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