Investing in Real Estate in Oman (2025)
Why is Oman becoming an attractive destination for real estate investment?
In recent years, Oman has become increasingly appealing to international investors due to its open economic policies, infrastructure development, and favorable investment environment for foreigners. Political stability, low inflation, high social security, and the absence of income and capital gains taxes make Oman a safe and profitable destination for real estate investment.
For many investors, buying property in Oman is not just about owning a stable and valuable asset, but also an opportunity to obtain long-term residency. Cities like Muscat and Salalah, where luxury and tourism projects are rapidly developing, are especially attractive.
The State of Oman’s Real Estate Market in 2024 and Forecast for 2025
According to the Omani Ministry of Housing, the total value of real estate transactions in 2024 exceeded OMR 3.13 billion, indicating consistent growth compared to previous years. Over 61,000 transactions were registered, mostly involving residential, commercial, and land properties.
Mortgage lending also saw a significant increase, reaching OMR 2.1 billion, a 44% growth compared to the previous year. This shows increased confidence in the market from both private investors and banks.
Market analysts predict that from now until 2029, the real estate sector in Oman will grow at an average annual rate of 9.2%. Although a slight slowdown is expected in early 2025, the overall outlook remains positive.
Property Ownership Rules for Foreigners in Oman
Under current regulations, non-Omani nationals are allowed to own property in designated areas only.
1. Freehold Ownership
Foreigners can obtain full ownership only in Integrated Tourism Complexes (ITC). Examples of such projects include:
Al Mouj Muscat
Muscat Bay
Sohar Gardens
In these projects, foreign buyers receive a full title deed and can sell, rent, or bequeath the property.
2. Usufruct Rights
In other areas, foreigners may only acquire property under a long-term usufruct agreement (usually 50–99 years). In this case, ownership remains with the government or an Omani citizen, but the buyer has full usage rights and may rent the property.
Steps to Buying Property in Oman + Required Documents
The process is relatively straightforward, but all legal steps must be followed:
Main Steps:
Select the property and agree on the price
Verify legal documents through a legal advisor or representative
Pay a deposit (usually 5–10% of the purchase price)
Apply for a No Objection Certificate (NOC) from the Ministry of Housing
Sign the final contract and complete payment
Register the transaction and receive the official title deed
Required Documents:
Valid passport copy
Proof of employment or income (if resident)
Contact info, residence address, and tax number (if any)
For company purchases: company registration, articles of association, and legal representative info
Costs Associated with Buying Property in Oman
One of Oman’s biggest advantages is its low and transparent transaction costs:
3% registration fee on the purchase price
NOC fee: approx. OMR 10
No annual property tax
No tax on rental income or capital gains
No VAT for residential properties
Can Foreigners Get a Mortgage in Oman?
Yes. Many Omani banks offer home loans to non-citizens. Key conditions include:
Loan up to 70–80% of property value
Repayment term: up to 25 years
Interest rate: around 7–8% per annum
Proof of steady income and bank statements required
Banks such as Bank Muscat, Bank Dhofar, OAB, and HSBC Oman offer these services.
Rental Yields and ROI in Oman
Rental yields for residential properties in Oman typically range from 6% to 8% annually. Although rental prices in some areas have dropped by 10–25% over the past 18 months, demand is starting to recover.
Popular Areas for Investment and Rentals:
Madinat Sultan Qaboos: popular with diplomats
Shatti Al Qurum: beachfront and near malls
Al Azaiba and Bausher: modern developments
Al Mouj Muscat: luxury, expat-friendly area
Residency Through Property Investment in Oman
Since 2021, Oman has launched a “Golden Visa” program for foreign investors.
Residency Conditions:
Invest OMR 250,000 to obtain a 5-year visa
Invest OMR 500,000 for a 10-year visa
Renewable if investment is maintained
Residency is usually granted only for ITC properties. Investors can also sponsor family members.
Risks and Considerations Before Buying Property in Oman
Before making a final decision, pay attention to the following:
Legal verification of property and NOC issuance
Careful market analysis (area price trends, rental demand, liquidity)
Choosing reputable developers or government-backed projects
Understanding the difference between freehold and usufruct
Final Thoughts: Is Buying Property in Oman a Smart Choice?
If you’re seeking a stable, tax-free market with reasonable returns and legal residency opportunities, Oman is a smart and promising option. With attractive investment incentives, luxury residential projects, and a steadily growing economy, Oman is securing its position among the emerging real estate markets in the Gulf region.
However, like any investment, success requires a clear strategy, proper legal due diligence, and full awareness of local regulations.