Buoyed by continuous investment programmes and constant efforts to revive Oman’s real estate market by the government, the sector is on path of recovery.
The value of total real estate transactions in the country rose by 4.2 per cent year-on-year from January 2017 to January 2018, touching RO 1.01 billion, according to the National Center for Statistics and Information (NCSI). Earlier, the real estate sector was projected to grow by 3.6 per cent this year.
Additionally, contribution of travel and tourism sector to Oman’s GDP has been forecast to grow by 6.3 per cent in 2018, and then by an average of 5.9 per cent per year up to 2028 to reach a value of
RO 3.3 billion, which accounts for a contribution of 8.9 per cent to the total GDP.
A report published by the Oxford Business Group (OBG) said the real estate sector in the Sultanate is witnessing a major change.
Mohamed Zayd Azeez, a leading real estate adviser to major realtors in the region, says with continued economic recovery in the Sultanate, the country is expecting a number of projects to be announced, including major hotel operators coming in.
“Moreover, demand for such properties are still strong as the spending power of people have considerably increased and would like to get more value for their money. So there has been a shift of trend. People living in older properties are now moving to newer modern properties offering more facilities,” Zayd Azeez adds.
In the past three years, the first quarter of 2018 saw a marginal decline of only 1.1 per cent, indicating the market may be nearing the bottom of the session. “We view this projected improvement as a seismic shift in the fundamental make-up of the Sultanate’s economy and certainly one that puts the economy on a path to more widespread diversification,” said Faisal Durrani, Head of Research at Cluttons International Property Consultants.
He explained that the leading leases in this sector have experienced a period of relative calm after falling by 20-25 per cent.
He further pointed out that in order to benefit from higher incomes, the country has been encouraging new investment on the background of improved economic conditions, while hospitality sector in the Sultanate continues to outperform other sectors by allowing full foreign ownership.
The government in January announced regulations for real estate investment funds to allow more individual investors to invest in real estate which contributes to increase in liquidity in the market and pushing towards further development.
The regulations in the Sultanate allow 100 per cent foreign ownership of real estate investment funds, he added.
For real estate investment funds, the government adopted a successful move in 2006 to allow international investors to own real estate.
One of the main features of Integrated Tourist Complexes (ITCs) is that non-Omani citizens can buy residential properties, while developers are providing more recreational and recreational facilities such as golf courses, marinas and beach clubs.
Additionally, the government’s goal of attracting 21 million tourists by 2035 is up from 8 million in 2015 as part of the efforts to diversify the economy, which means the prospects for real estate sector remain strong with the near completion of many new projects in the next six months.
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