Oman property market grows despite regional tensions as real estate transactions hit $3.73bn

Oman’s property market recorded OR1.434bn ($3.73bn) in real estate transactions in H1 2026 as foreign investment and demand remained resilient.

Oman’s property market continued to expand during the first half of 2026, with transaction values increasing despite regional geopolitical tensions and foreign investment continuing to rise.

New figures from the National Centre for Statistics and Information (NCSI), alongside Savills’ Oman Property Market Q2 2026 report, show stronger sales activity, resilient investor confidence and a positive medium-term outlook supported by economic growth, infrastructure investment and the Sultanate’s expanding logistics sector.

The traded value of real estate in Oman rose by 5.4 per cent to OR1.434 billion ($3.73bn) by the end of June 2026, compared with OR1.360 billion ($3.54bn) during the corresponding period in 2025, according to NCSI statistics.

Savills reported that the total value of property transactions reached OR1.43bn ($3.72bn) by the end of June, while the number of property contracts increased by 12.2 per cent. Mortgage activity remained broadly stable, declining by 0.3 per cent.

Oman real estate growth

NCSI data showed:

• The traded value of sales contracts increased 12.2 per cent to OR688m ($1.79bn) from OR613m ($1.59bn)
• The number of sales contracts rose 6.9 per cent to 34,017, compared with 31,831 a year earlier
• The traded value of mortgage contracts declined 0.3 per cent to OR740.2m ($1.92bn) from OR742.2m ($1.93bn)
• The number of mortgage contracts increased 25.7 per cent to 13,383, compared with 10,647 during the same period in 2025
• The traded value of swap contracts rose 20.3 per cent to OMR5.8m ($15.1m) from OR4.8m ($12.5m), although the number of swap contracts fell 39.3 per cent to 362 from 596

Meanwhile, the number of title deeds issued fell 8 per cent to 101,700, compared with 110,551 a year earlier. Title deeds issued to citizens of GCC countries declined 22.4 per cent to 541, down from 697.

Savills said foreign direct investment (FDI) in Oman’s real estate sector reached OR602.5m ($1.57bn) by the end of the first quarter of 2026, representing 1.2 per cent year-on-year growth.

The consultancy said the increase reflected continued investor confidence in the Sultanate’s long-term property market despite ongoing regional geopolitical tensions.

The report also noted that while Oman experienced a modest economic slowdown during the first quarter, the medium-term outlook remains positive.

Premium residential communities

According to Oxford Economics forecasts cited by Savills, GDP is expected to grow by 6.3 per cent in 2027 and 7.1 per cent in 2028, supported by higher oil production, resilient non-oil activity, continued government investment and a business-friendly policy environment.

Within the residential market, Al Mouj retained its position as Oman’s premium residential destination.

Average monthly apartment rents reached OR664 ($1,727), while average rents for four-bedroom villas stood at OR1,700 ($4,421).

Elsewhere, apartment rents in Qurum increased 16 per cent, while four-bedroom villa rents in Madinat Sultan Qaboos rose 22 per cent, reflecting sustained demand alongside constrained supply.

Muscat’s office market remained broadly stable during the second quarter, with rental rates across the CBD and Qurum unchanged. Ghubrah and Azaiba recorded rental growth of 4 per cent, reflecting continued occupier demand.

Logistics sector outlook

Savills said Oman remains well positioned to benefit from changing regional trade patterns.

With ports in Salalah, Duqm and Sohar located outside the Strait of Hormuz, the country is strengthening its position as a regional logistics hub, supporting demand for warehousing, logistics and trucking services while reinforcing the long-term outlook for commercial real estate.

Ihsan Kharouf, Head of Oman at Savills Middle East, said: “Despite ongoing regional uncertainty, Oman’s property market continues to demonstrate resilience, supported by improving investor confidence, a stable economic environment and continued government investment. The increase in transaction values and sustained foreign investment highlight the market’s long-term appeal, while ongoing infrastructure development and economic diversification continue to strengthen the country’s investment proposition.

“The market’s medium-term outlook remains positive, with demand expected to be supported by Oman’s strategic location, expanding logistics sector and continued policy initiatives aimed at attracting investment and sustainable economic growth.”