Real Estate

Savills Middle East has published its Oman Property Market Report – Q4 2025, offering an in-depth overview of macroeconomic conditions and key trends shaping the residential and office real estate markets in Muscat.

According to the report, Oman’s economy continued to demonstrate steady growth, with gross domestic product reaching OMR 26.6 billion by the third quarter of 2025, reflecting a 2 per cent year-on-year increase. Growth was supported by improved performance across both oil and non-oil sectors, providing a stable backdrop for real estate activity.

The property market recorded total transaction values of OMR 2.8 billion as of the end of November 2025. Contract volumes increased by 17.9 per cent year on year, indicating sustained buyer confidence and continued market participation.

Savills noted broadly stable rental performance across Muscat’s residential and office markets. Prime lifestyle destinations, particularly integrated tourism complexes such as Al Mouj, continued to command premium rents, most notably in the villa segment. While some apartment submarkets experienced modest rental softening, overall tenant demand remained resilient, with limited evidence of major changes in occupier behaviour.

The office sector remained balanced, with rental rates holding steady across key submarkets. This stability reflects aligned supply and demand dynamics, underpinned by cautious development activity and consistent occupier requirements.

The report also examined structural developments influencing the market, including the formalisation of the short-stay accommodation sector and the introduction of long-term residency incentives linked to property ownership. These measures are expected to support occupancy levels and underpin sales demand over the medium to long term.

Commenting on the findings, Ihsan Kharouf, Head of Oman at Savills Middle East, said the country’s real estate market continues to benefit from a resilient economic environment and steady demand across both residential and office segments. He added that while lower-grade apartment stock has seen some rental softening, established locations such as Bowsher and prime integrated tourism complexes like Al Mouj continue to attract premium pricing, particularly for villas.

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