MUSCAT, SEPT 13
The total traded value of real estate in the Sultanate of Oman reached RO 1.434 billion in the first half of 2026, supported by steady sales, mortgage financing and growing demand for high-quality residential and logistics assets, according to a report by Hamptons International.
Completed sales contracts were valued at RO 688.1 million during the six months to June 30, averaging about RO 115 million a month. More than 34,000 sales contracts were registered, with monthly volumes ranging between about 4,200 and 6,400 transactions.
Mortgage contracts were worth RO 740.2 million, exceeding the value of outright sales and underlining the continued importance of bank financing to buyers and investors. A total of 13,383 mortgage contracts were registered.
June recorded RO 258.7 million in total property trading, including RO 136.2 million in sales and RO 122.1 million in mortgages. The month saw 6,153 sales contracts and 2,253 mortgage agreements.
Hamptons expects transaction volumes to remain robust in the second half, assuming stable economic conditions and continued mortgage availability. Residential and mixed-use developments, alongside strategically located commercial properties, are expected to attract the most investor interest.
Muscat’s residential sector was among the strongest-performing market segments during the first half, driven by population growth, economic diversification and the expansion of master-planned communities.
Demand remained healthy for apartments, townhouses and villas in integrated developments and established neighbourhoods. Foreign-buyer interest was concentrated in Integrated Tourism Complexes, including Al Mouj Muscat, Muscat Hills, Muscat Bay and Jebel Sifah.
Sultan Haitham City is also emerging as a major freehold investment destination, with new neighbourhoods broadening the range of properties available to international buyers.
Monthly asking rents for unfurnished two-bedroom apartments with facilities were highest at Al Mouj, at around RO 650, followed by Muscat Hills, Al Qurum and Madinat Qaboos at about RO 450. Comparable rents stood at around RO 250 in Al Khuwair and Al Ghubra.
The industrial and logistics market was one of the strongest commercial segments, supported by manufacturing, distribution and investment in ports, free zones and industrial cities. Demand increasingly favoured modern warehouses equipped for automation, high-bay storage and advanced supply-chain operations.
Average gross yields for warehouse and logistics properties stood at about 9.4 per cent, compared with 8.5 per cent for Grade A offices and 8.75 per cent for retail properties and prime homes in Integrated Tourism Complexes. Mixed-use buildings with a large residential component generated the highest average yield at 9.75 per cent.
The office market remained tenant-led but increasingly divided between modern Grade A buildings and older properties. Multinational companies, professional services firms and government-related entities favoured flexible floorplates, energy-efficient systems and ample parking. Offices measuring 500 to 750 square metres were particularly popular among small and medium enterprises.
Retail property remained broadly stable, with supermarkets, cafés, healthcare providers, fitness operators and neighbourhood services recording the strongest leasing demand. Prime malls maintained healthier occupancy, while older centres relied more heavily on rental incentives and refurbishment.
The outlook for the second half remains positive but quality-driven, Hamptons said. New property registration rules under Royal Decree No 56/2026 are expected to improve transparency, streamline transactions and strengthen investor confidence, while prime residential, logistics and mixed-use properties are likely to continue outperforming secondary assets.
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