MARKET REPORT

www.cavendishmaxwell.com
ABOUT
Established in 2008, Cavendish Maxwell is one of the largest and most respected property consultancies
in the region. An influential partner and trusted advisor to key stakeholders in real estate markets
throughout the Middle East and North Africa, we offer a comprehensive range of exceptional property
services across a diverse mix of sectors and asset classes.

Cavendish Maxwell is a fully certified member firm of the Royal Institution of Chartered Surveyors (RICS),
bringing together a world-class team of handpicked property consultants and surveyors, unmatched
elsewhere in the region.

Our team of highly qualified professionals is trusted by real estate market stakeholders throughout the
region, including international and domestic banks, property developers, governments, owners and
investors, asset managers and professional services firms. We service a diverse mix of specialist property
sectors including retail, offices, hospitality, healthcare, education, industrial and logistics.

Cavendish Maxwell also publishes independent reports, prepared to globally accepted standards, for
loan security, bank lending, audit, insurance reinstatement, dispute resolution, risk management, debt
recovery, performance analysis, purchase and sale advice, and third party reliance purposes.
FOREWORD
The Sultanate of Oman appointed a new leader in 2020 after the passing of Sultan
Qaboos bin Said, credited with transforming Oman into a prosperous country with a
peaceful foreign policy during his 49-year reign.

The swift and smooth appointment of his cousin Sultan Haitham bin Tariq as the
new ruler sent a clear message to the world about Oman’s intent to
maintain transparency and stability.

It is now clear that the new Sultan will continue Oman’s foreign policy as outlined
by the former ruler, with a focus on maintaining its strategic role as a mediator
in the region. Not only will he have to cautiously tackle international affairs, most
recently flared with increased tensions between the United States and Iran in the
strategically located Gulf of Hormuz, but also respond to domestic challenges such
as mounting debt, high unemployment levels and a generally sluggish economy.

In our latest report, we explore the effects of these developments on Oman’s real
estate sector, reviewing the performance of the residential, retail, office, industrial
and hospitality segments in 2019.

CONTENTS
4 Macroeconomic Overview

5 Demographic Overview

6 Real Estate Activity

8 Tourism Overview

10 Residential Market Overview

18 Office Market Overview

22 Retail and Entertainment

26 Hospitality Market Overview

30 Industrial Market Overview

34 Market Spotlight

36 A Word From Our Chief Economist

38 Key Services
 OMAN PROPERTY MARKET REPORT 2O19–2O2O

MACROECONOMIC
OVERVIEW

In 2018, hydrocarbon production was a major contributor to Oman’s Gross

Domestic Product (GDP), with Central Bank of Oman data showing a
contribution of 37%, more than doubling the 2017 levels.

According to World Bank data, Oman’s real GDP was estimated to decline to 0.3% in 2019 from 2.2% in 2018. Whilst
official figures on growth for the full year are not yet released, one of the drivers of the expected decline in 2019
were the oil production cuts that were put in place by the OPEC+ group of oil-producing countries, including Oman.

Whilst the lower contribution by the petroleum sector likely weighed on the economy’s expansion in 2019, the
World Bank in its December 2019 update estimated growth to expand to 3.7% in 2020, aided by increased natural
gas production from new fields. However, since then, concerns around the Covid-19 outbreak have deepened and
the Opec+ deal collapse has exerted downside pressure on oil prices.

Meanwhile, Oman’s diversification efforts are underway with the non-oil economy estimated to grow by 1.5%
in 2020 aided by the Tanfeedh programme, which focusses on developing sectors such as logistics, tourism,
transport, mining, manufacturing and fisheries.

OMAN GDP AT CURRENT PRICES 2015–JUN 2019 GDP PER CAPITA IN GCC COUNTRIES 2018

35,000 3-year CAGR*: 3.6%

30,000 30,000

25,000 25,000
GDP per capita (OMR)

20,000 20,000
Y-o-Y growth: -1.9%
GDP at current prices

15,000 15,000
(OMR million)

10,000 10,000

5,000 5,000
26,550
27,385

28,749

27,216

30,489

14,325

14,050

16,542

13,170

9,251

6,315
8,931

0 0

2015 2016 2017 2018 Jan– Jan– Qatar UAE Kuwait Bahrain Saudi Oman
Jun18 Jun19 Arabia

*Compound Annual Growth Rate

Source: Royal Oman Police; Ministry of Finance; National Centre for Statistics and Information; World Bank Data; Cavendish Maxwell 2020

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

DEMOGRAPHIC
OVERVIEW

OMAN POPULATION BY NATIONALITY

According to the National Centre for Statistics and DECEMBER 2019
Information (NCSI), the population of Oman stood
at 4.7 million as of December 2019 compared to 2.9
million in 2008.

In 2019, locals comprised 57.7% of total population whilst expats made up the
remaining 42.3%.
57.7%
In an attempt to increase the domestic participation of its labour force, Oman
has adopted a phased extension of a temporary visa ban on hiring expats in the
professions of IT, accounting and finance, sales and marketing, management and
human resources, insurance, media, medical, airports and engineering.

Between December 2018 and December 2019 alone, the total expat population in
Oman recorded a negative year-on-year (YOY) growth of 2.9%. However, backed
by a young local population whose skill-sets are being sharpened through several
government initiatives, Oman is set to display its investment value to global investors.

42.3%

TOTAL POPULATION IN OMAN 2008–NOV 2019

10-year CAGR: 3.9%

4,560,000

4,664,844
4,159,000

4,647,110
3,295,000

3,623,000

3,855,000
3,174,000

2,773,000

3,993,000

4,414,000

25%

20%
19%
5,000,000
4,500,000 15%
4,000,000 10%
11%
10%
3,500,000
6% 6%
3,000,000 4% 4%
3%
5%
1% 0.4%
2,500,000
0%
2,000,000
1,500,000 -5%
1,000,000
-13%
-10%
500,000
0 -15%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total population Y-o-Y growth

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

REAL ESTATE
ACTIVITY

Supported by the recovery in oil prices until 2019, Oman’s

real estate market gradually recovered, presenting several
opportunities for owners and tenants alike.

Real estate activity includes sale, grant, inheritance, exchange, mortgage, and
mortgage redemption, usufruct and division transactions.

According to the NCSI, the value of traded contracts during December 2019 in Oman
stood at over OMR 263 million, whilst collected fees amounted to over OMR 7 million.
The total value of sale contracts in 2019 stood at over OMR 70.6 million through 4,674
sale transactions.

Meanwhile, the total value of mortgage contracts showed an uptick of 13.5% from
OMR 1.6 million in December 2018 versus OMR 1.8 million in December 2019 through
relatively unchanged contracts.

After recording a steep drop to OMR 2.6 billion in 2017 from OMR 6.6 billion in 2016,
traded value of property in Oman improved slightly to OMR 2.7 billion in 2019.

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

REAL ESTATE ACTIVITY IN OMAN 2017-2018

Key Indicators for Oman’s 2019 End of Dec

Real Estate Sector Oct Nov Dec Total 2018 2019 % Change

Traded value of property (OMR million) 216 471 263 950 2,641 2,771 4.9

Fees collected for all legal documents (OMR million) 7 6 7 20 84 82 -2.4

Traded value of sales contracts (OMR million) 83 60 71 214 1,002 911 -9.1

Number of sales contracts 5,161 3,716 4,674 13,551 58,828 56,887 -3.3

Traded value of mortgage contracts (OMR million) 130 410 190 730 1,623 1,837 13.2

Number of mortgage contracts 1,535 1,118 1,139 3,792 16,027 16,017 -0.1

Traded value of barter contracts (OMR million) 3 1 2 6 16 23 43.8

Number of barter contracts 164 96 170 430 1,527 1,641 7.5

Number of properties issued 18,895 14,513 18,209 51,617 223,492 211,191 -5.5

Number of properties issued for GCC nationals 89 58 37 184 1,396 875 -37.3

TRADED VALUE OF THE PROPERTY IN OMAN DECEMBER 2016–2019

6,622

2,609

2,641

2,771

7,000 10%
5%
6,000 0% 1% 0%

-10%
5,000

-20%
4,000
-30%
3,000
-40%

2,000
-50%

1,000 -60%
-61%

0 -70%
2016 2017 2018 2019

Traded value of property (OMR million) Y-o-Y growth

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

TOURISM
OVERVIEW

As part of its diversification strategy, Oman is focusing on its

tourism industry as a key growth driver of the economy.

Tourism contributed 2.8% to Oman’s GDP in 2016. In the same year the government
launched the Oman Tourism Strategy (2016 -2040)‫زز‬. The strategy aims to boost the
share of the sector’s contribution to GDP to 6-10% by 2040, attracting 11 million local
and international tourists, and creating over 500,000 jobs through an investment of
OMR 19 billion.

In 2018, tourism contributed 2.9% to Oman’s GDP. Total tourism revenue in Oman stood
at OMR 1.4 billion of which inbound tourists contributed 49% at OMR 680 million. The
remaining 51% at OMR 700 million was derived from domestic tourism.

According to NCSI data, the number of visitors to Oman has increased over the last five
years, from 1.9 million in 2013 to 3.2 million in 2018 registering a positive CAGR of 11%.
Compared to 2017, the number of visitors coming to Oman recorded a year-on-year
growth of 2%. In 2019, Oman welcomed 3.5 million visitors.

Visitors from GCC countries made up the highest share at 45%, followed by Asians
at 21% and Europeans at 19%. Of the 2.3 million overnight visitors, 1.5 million stayed in
hotels and hotel apartments, 484,000 with relatives and friends, whilst the remaining
stayed in furnished flats and other accommodation.

Visitors spent a total of OMR 679.2 million of which accommodation represented the
bulk of expenses at 31%. Accommodation spending reached OMR 213 million in 2018
compared to OMR 183 million in 2017, registering a year-on-year increase of 15.6%.

Apart from increasing contribution towards GDP and generating employment

opportunities, Oman’s push for tourism is expected to support 1,200 tourism SMEs and
stimulate the overall local economy, readying it for future growth.

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

NUMBER OF VISITORS TO OMAN 2013–2018

5-year CAGR: 11%

1,922,000

2,225,000

2,635,000

3,207,000

3,179,000

3,241,000
3,500,000

3,000,000
Number of visitors

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2013 2014 2015 2016 2017 2018

GCC Other Arabs Asians Europeans Others

NUMBER OF VISITORS TO OMAN BY NUMBER OF VISITORS TO OMAN

PURPOSE OF VISIT 2018 BY TYPE 2018

2,500,000
11%

2,000,000
Number of visitors

11%

46% 1,500,000

1,000,000
32%
2,301,000

941,000

500,000

0
Leisure and recreation Business Overnight Same-day
Others
visitors visitors
Visiting relatives and friends

9
 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RESIDENTIAL
MARKET OVERVIEW

As Oman pushes ahead with its Omanisation drive, the number

of expats leaving the country as a result of visa bans for foreign
workers has increased, sending property rents and prices lower.

NCSI data showed that between December 2018 and 2019, the total number of expats decreased
2.9% from 2,030,194 to 1,972,088.

To adjust to the changing market scenario, some landlords and owners have lowered their asking
rents and prices, whilst offering better maintenance services. Consequently, they are witnessing
lower vacancies, compared with others who are less flexible or have poorly maintained
properties.

With increased availability, tenants and buyers are preferring to move to certain areas of Muscat
and other cities.

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OMAN PROPERTY MARKET REPORT 2O19–2O2O

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RESIDENTIAL OMR 105,000

OMR 142,000
OMR 187,500

OMR 297,500
PRICE PERFORMANCE
OMR 150,000 OMR 440,000

OMR 486,000
PRICE BY UNIT TYPE 2019
APARTMENT VILLA/TOWNHOUSE OMR 780,000

1 BR 2 BR

2 BR 3 BR

3 BR 4 BR

4 BR 5 BR

6 BR

OMR 100,000

OMR 120,000

OMR 25,000 OMR 75,000

Al Mouj

Al Khoudh

Ma’abela

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

OMR 74,000 OMR 222,000 OMR 48,000

OMR 88,000 OMR 245,000 OMR 55,000

OMR 70,000

OMR 220,000

OMR 240,000
OMR 73,000 OMR 240,000
OMR 380,000
OMR 108,000 OMR 371,000

OMR 135,000 OMR 558,000

OMR 303,000
OMR 210,000 OMR 695,000
OMR 352,000

OMR 463,000

OMR 50,000 OMR 130,000

OMR 180,000
Qurm
OMR 270,000

OMR 345,000

Shatti
Al Qurm

Madinat Al Sultan
Al Khuwair Qaboos
Azaiba

OMR 38,000

OMR 50,000

OMR 79,000

Muscat Hills

Bausher

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RESIDENTIAL OMR 500

OMR 700
OMR 790

OMR 1,200
RENT PERFORMANCE OMR 900 OMR 1,300

OMR 1,700

MONTHLY RENT BY UNIT TYPE 2019

APARTMENT VILLA/TOWNHOUSE

1 BR 2 BR OMR 160 OMR 350

2 BR 3 BR OMR 170 OMR 480

3 BR 4 BR OMR 240 OMR 520
5 BR

6 BR

Al Mouj
Al Hail
Al Khoudh
Ma’abela

OMR 125 OMR 250 OMR 175

OMR 150 OMR 350 OMR 200

OMR 200 OMR 300

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

OMR 230 OMR 550 OMR 165 OMR 400

OMR 300 OMR 680 OMR 195 OMR 490

OMR 425 OMR 950 OMR 230 OMR 600

OMR 235 OMR 500 OMR 230 OMR 500

OMR 280 OMR 610 OMR 410 OMR 700

OMR 365 OMR 830 OMR 375 OMR 800

OMR 860 OMR 900

OMR1,000

OMR 1,200

OMR 1,500
Qurm
OMR 2,200

Ruwi
Shatti
Al Qurm

Al Khuwair
Azaiba Madinat Al
Sultan Qaboos OMR 850

OMR 1,100

OMR 1,450

OMR 1,800
Muscat Hills

OMR 235 OMR 500 Bausher

OMR 295 OMR 600 OMR 305 OMR 500

OMR 315 OMR 700 OMR 400 OMR 650

OMR 720 OMR 760

OMR 850 OMR 1,000

15
 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RESIDENTIAL
UPCOMING SUPPLY
Oman is expected to receive additional supply of residential properties during 2020-2021. Some of the new developments
include Habitat in Al Khuwair with 44 residential units, 44 retail units and 118 office units, The Myriad Muscat with 1,476 units
and Al Hail Green Residential Development - Phase 2 containing 360 units.

Al Hail Green Residential Development - Phase 2 Musandam

Seeb
Khasab Al Batina
Seven blocks consisting G+5 buildings with 168 3-bed units.
Five blocks consisting G+7 buildings with 192 2-bed units.
Parking capacity for 440 cars. Al Buraimi

Suhail Bahwan Group

2020
360 Ad Dhahirah

BBH Towers - Airport Heights

Near Muscat International Airport
The Myriad Muscat
Four G+8 residential towers.
Seeb
Development consists of a small mall, gym, swimming pool,
children’s rest area and a hanging garden. Student-housing complex designed to accommodate over
2,500 residents.
Private Developer
Includes a supermarket, retail stores, food outlets and a
2020 fitness club.

Sandan Development and Strategic Housing Group (SHG)

2021
Oceana Luxury Sea Apartments
1,476
Muscat

Apartment size ranges between 65 and 161 sq m.

Apartment price to range between OMR 37,000
Al Muna Gardens
Bausher Highlands
and OMR 92,000.
OMR 22 million development consisting 3-4 bed villas.
Arabian Properties
Apart from retail and entertainment areas, it will have a
2020 nursery for children and commercial spaces for rent.
180
Zain Properties
2021
Duqm Frontier Town: Phase 2 A 122
Duqm

Second phase of the larger project of the construction The Residences at Mandarin Oriental
of mixed-use facilities on 270 ha of land. Muscat
Includes the development of commercial space, retail
areas, a hospital, a shopping mall and an international First high-end branded residence in Oman with
school. apartment sizes ranging from 75 to 260 sq m.

Eagle Hills Muscat

Duqm Development Company
2021
2020
155
500

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

Muscat
Integrated Residential Complex in Oman
Bausher

Rimal 2 to be spread across 44,000 sq m offering 1-3 bed apartments.

Ash Sharqiyah
Starting price of apartments is OMR 38,995 and commercial units are
available from OMR 27,995.
Oman Supreme Council for Planning
Ad Dakhiliya 2021
148

Habitat in Al Khuwair
Al Khuwair

The 75,000 sq m project is a mix of for-sale residential, commercial,

and open-air restaurants anchored with unique retail spaces.
The residential units are spread between 97 and 322 sq m whilst the
Al Wusta office units are between 58 and 295 sq m.

Tasmim
2021
44

Ras Al Hamra Residential Development Project (Phase 5)

Ras Al Hamra

The 281-ha RAHDP masterplan is divided into five phases.

Once complete, the development will have 1,067 units to accommodate
4,000-5,000 employees of Petroleum Development Oman (PDO) and
their families.
Dhofar
Petroleum Development Oman (PDO)
2022
800

Madinat Al Irfan (Masterplan)

Muscat

Mixed-use community spans over 4.5 million sq m.

Consists 100,000 sq m of retail and 700,000 sq m of office space apart
from residences.

Oman Tourism Development Company (Omran)

2021
More than 11,000 residential units

Developer Expected completion year Number of units

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

OFFICE
MARKET OVERVIEW

Against the backdrop of the tepid economic environment

combined with Oman’s protectionist policies, a number of
enterprises have found it difficult to sustain.

According to Invest Easy, a Ministry of Commerce and Industry (MOCI) platform established for the quick and easy set up of
companies, between 2016 and 2019, the total number of registered enterprises decreased from 38,070 in 2016 to 21,913 enterprises
in 2019, recording a negative CAGR of 17%. However, compared to 21,235 enterprises in 2018, the number increased in 2019,
registering a year-on-year growth of 3%.

Interestingly, the small and medium enterprises sector has thrived over the years, with the number of SMEs registered in the
Riyada Public Authority of Small and Medium Enterprise Development growing nearly 15% from 36,821 enterprises in 2018 to 42,163
enterprises in 2019.

To meet demand from this segment and the overall need for low-cost commercial space, flexible workspace providers and co-
working companies are responding with the opening of new or additional business centres. In 2019, leading global workspace
provider Regus announced the opening of its sixth business centre in Oman‫ز‬.

In November 2019 the government also introduced the Foreign Capital Investment Law to incentivise investments from foreign
players into Oman to stimulate local growth. Implemented in January this year, the law will ensure more money stays within the
local economy, which would be utilised to enhance the economy and the people’s standard of living.

OFFICE RENTS IN MUSCAT (PER SQ M PER MONTH)

Seeb/Airport Heights
OMR 4-8

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

NUMBER OF REGISTERED ENTERPRISES IN OMAN 2016-2019

3-year CAGR: -17%

38,070

25,569

21,235

21,913
40,000 5%
3%
35,000 0% 0%

30,000 -5%
-10%
25,000
-15%
20,000 -17%
-20%
15,000 -25%
10,000 -30%
-33%
5,000 -35%

2016 2017 2018 2019

Number of registered enterprises Y-o-Y growth

Qurm
OMR 5-8

Shatti Al Qurm
OMR 5-10 Ruwi/Wattaya
OMR 2-4

Azaiba Ghubrah
OMR 4-8 OMR 4-9
Al Khuwair/Bausher
OMR 4-7

Ghala
OMR 4-7

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

OFFICE
UPCOMING SUPPLY

iTower Office Building

Bausher

Seven-storey tower
17,454 sq m development
Gulf Muscat United
2020
71 offices sized between 42 sq m and 1,550 sq m

Muscat Hills : Business Tower One

Muscat
Seven-storey tower with 3 basement levels
32,000 sq m land area and 2,000 sq m build up area

Muscat Golf Course Project Company

2020
Spaces ranging from 70 sq m to 500 sq m

Taj Office Building

Ghala
12-storey solar-powered project
Built up area at 3,942 sq m

Teejan Investment and Development Company

2020-2021
3,942 sq m

Integrated Light Industries City (Masterplan)

Muscat
Sandan City - the first integrated city for light industries in Oman
Plot size 250,000 sq m and built up area 320,000 sq m
Over 2,400 shops, 400 offices and 1,800 residential units

Muscat Golf Course Project Company

2020
2000 sq m land area and 2000 sq m build up area

2021

Developer Expected completion year Area

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OMAN PROPERTY MARKET REPORT 2O19–2O2O

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RETAIL AND ENTERTAINMENT

MARKET OVERVIEW

Oman’s retail sector may currently be under pressure with rapid construction
of new malls across the country. adding further pressure on the supply side.
However, over the longer term, innovative retail concepts and online shopping
are expected to drive growth in the sector.

Similar to trends in other regional markets, e-commerce continues to grow at a rapid pace, despite in-store retail
dominating the landscape. One of the highest mobile penetration rates in the world coupled with a growing youth
population that is tech-savvy has helped enhance the popularity and growth potential of online retail.

With an aim to expand offerings beyond traditional retail, some malls are introducing entertainment facilities to cater to
the evolving needs of visitors. An example is the Oman Aquarium which opened up in the Mall of Muscat in 2019. With
over 30,000 marine animals and 1,000 types of fish spread over three floors, it is the largest aquarium in the Middle
East.

To provide visitors and shoppers with a unique shopping experience in Muscat, Oman has planned night markets in
at least four areas of the capital – Muttrah, Seeb, Bausher and Al Amerat. The move was aimed to re-ignite business
activity in these locations, whilst providing growth opportunities to SMEs and employment opportunities for Omanis.

An upcoming project to watch out for is the Village Square in Muscat Bay. Extending over 1,640 sq m, the new Village
Square will include facilities such as restaurants, cafes, a supermarket, a gym and retail stores. The development is
expected to be completed this year.

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RETAIL RENTS IN MUSCAT (PER SQ M PER MONTH)

Ma’abela Seeb Al Khoudh

OMR 4-7 OMR 8-15 OMR 9-15

Mawaleh South
OMR 9-16

Shatti Al Qurm
OMR 10-20

Qurm
OMR 10-20

Ruwi
OMR 6-10

Bausher
OMR 8-12

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

RETAIL AND ENTERTAINMENT

UPCOMING SUPPLY

Barka Marina
Barka

Phase 1: Fish, meat and vegetable market, management centre, cold stores, hypermarkets,
healthcare clinic, closed and open recreational facilities.
Stage 2: Event and family entertainment hall, shopping mall and cinema halls.
Stage 3: Hotel and private beach, resort, residential units, marina for 80 yachts, water sports centre.

Al Siyabi
Stage 1 and 2 - 2020 | Stage 3 - 2022

Mina Al Sultan Qaboos (Phase 1)

Sultan Qaboos Port, Muscat

Integrated mixed-use waterfront destination to include business and residential zones, a

destination mall, six hotels, recreation facilities and docking facilities for cruise liners and yachts.

Omran and DAMAC International

2020

Oman Renaissance Museum

Nizwa

Design includes three interconnected elements: the Plinth, containing the museum’s facilities; the
Gardens, a series of hidden oasis and the Jewel Box, containing the museum’s main galleries.
Oman Royal Court Affairs
2020

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

Muscat Bay’s Village Square

Muscat Bay

Restaurants, cafes, retail stores, supermarket, gym and parking capacity for 81 cars.

Saraya Holdings and Omran

2020

Mall of Oman
Muscat

145,000 sq m of retail space with 350 outlets, Oman’s largest Vox Cinemas, Magic Planet family
entertainment centre, Carrefour hypermarket and the largest indoor snow park in the country.
Majid Al Futtaim
2021

Hayy Al Sharq
Barka

Mixed-use development including three hotels, retail and residential areas, an integrated theme
park, wildlife park, water park, an equestrian center and an edutainment centre.

National Development and Investment Company (ASAAS)

2022

Developer Expected completion year

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

HOSPITALITY
MARKET OVERVIEW

According to Omran, the executive arm of the government for

tourism development, the country’s hotel capacity has expanded
over 80% in just under a decade in order to accommodate a thriving
tourism and hospitality industry.

Visitor numbers have displayed stable growth from 3 million in 2016 to 3.3 million in 2017 and 2018.
With 2.3 million of these being overnight visitors in 2018, Oman is preparing to offer plenty of hotel
supply across categories to cater to the varied needs of tourists.

Oman also secured the 58th place among 140 nations in the 2019 Global Travel and Tourism
Competitiveness Report by the World Economic Forum, moving up eight spots from the previous
ranking achieved in 2017. The biennial study measures the factors and policies that enable the
sustainable development of the sector, and thereby the wider economy.

As of December 2019, total occupancy rates in 3-5 star-hotels was 65.8% compared to 66.1% in
December 2018 showing a slight decrease. However, during the same period revenues rose 6.5% from
OMR 25.7 million in December 2018 to OMR 27.4 million in December 2019.

As of 2018, hotel establishments in Oman stood at approximately 412 including 23 hotels in the 5-star
category. According to Oman’s Ministry of Tourism (MoT), 31 hotels were expected to open in the
country in 2019, adding a total of 3,264 rooms to the market.

HOTEL GUESTS IN OMAN BY NATIONALITY AS OF DECEMBER 2019

Americans Oceanian
4% 1%

Other Arabs Africans

3% 1%

Others
4%

GCC Nationals
9%
Europeans

183,870 37%

Asians
14%

Omani‫سس‬s
27%

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OMAN PROPERTY MARKET REPORT 2O19–2O2O

27
 OMAN PROPERTY MARKET REPORT 2O19–2O2O

HOSPITALITY
UPCOMING SUPPLY

Al Mouj Rayhaan by Rotana Aloft Hotel

Al Mouj, Muscat Near Muscat International Airport
Accommodation ranges from luxurious rooms Hotel will introduce Aloft brand to Oman and help
and suites to hotel apartments. meet the demand for infrastructure development.
Golden Group Holding and Rotana New Rotana Enterprises
2021 2020
251 204

Swiss-Belinn Muscat Studio M Boutique Hotel

Azaiba Seeb
3-star hotel near Muscat International Airport offering Muscat Shaden is Millennium Hotels and Resorts’ first
an all-day-dining restaurant, meeting space, gym, Wi-Fi Studio M property in Oman. Located in Al Hail District,
access and 24-hour room service. the hotel will be spread across six floors.

Al Salaam International Hotel Al Madina Real Estate

2020 2020
128 302

Mandarin Oriental Hotel Avani Muscat Hotel

Shatti Al Qurm Seeb
Featuring five restaurants and bars, the Spa at Mandarin To be built over two phases and will include an all-day
Oriental and an outdoor swimming pool. dining restaurant, Avani Pantry, rooftop lounge, eight
meeting rooms, 1,000 sq m ballroom, swimming pool
Eagle Hills Muscat and health club.
2021
Minor Hotels and Safari International Group
150 rooms and suites | 156 residences
2020
160 rooms and suites | 90 serviced apartments

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

First InterCityHotel Jumeirah Muscat Bay

Al Khuwair Bandar Jissah

Rooms set across six floors along with a Talise Spa, bars, restaurants, conference and
restaurant and bar. banquet facilities, dive centre, watersports and
kids club.
Deutsche Hospitality
2020 Jumeirah Group
285 2020
206

Marriott St Regis
Al Mouj
Dhabab Resort
Corporate facilities, restaurants, VIP lounge, Qurayat
business centre, deluxe wellness centre,
Two swimming pools, spa, playground and multi-use
spas and health club.
halls with a capacity of 120 guests per room.
Marriott International
Oman’s Ministry of Tourism
2022
2020
271 luxury rooms | 170 branded residences
92

Developer Expected completion year Number of keys

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

INDUSTRIAL
MARKET OVERVIEW

Compared to 2018, the total number of businesses in industrial estates such

as Al Rusayl, Suhar, Raysut, Sur, Nizwa, Buraimi and Al Mazunah recorded
yearly growth ranging from 4% in Raysut to over 100% in Al Mazunah.

The Public Establishment for Industrial Estates - Madayn, which manages and operates the industrial cities, also recorded 60%
completion of the construction of Phase 2 of Al Mazunah Free Zone. The establishment was set up with the intention to develop
and position Oman as a leading regional centre for manufacturing, ICT, innovation and entrepreneurship excellence.

INDUSTRIAL ESTATE DISTRIBUTION

Total sq m rented and available by governorate

Al Rusayl Industrial Estate Suhar Industrial Estate Sur Industrial Estate

Al Rusayl Suhar Sur
OMR 1* OMR 1* OMR 1*
10,859,175 21,237,225​ 36,100,000
4,217,296 10,906,748 6,657,386
1,736,100 5,844,506 17,003,814
309 354 134

Raysut Industrial Estate Buraimi Industrial Estate Nizwa Industrial Estate

Raysut Buraimi Nizwa

OMR 1* OMR 1* OMR 1*

3,810,479 5,561,156 3,111,295
2,890,186 2,019,794 2,026,851
217,822 2,676,871 551,426
202 461 141

Rent per sq m per annum Total area sq m Area available for investment/lease sq m
*
Common Area Maintenance service is provided Rented area sq m Number of exisiting businesses

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

To attract and retain investors, Madayn provides incentives including exemption from tax on net profit for a period
of five years for industrial projects; exemption from customs duties and taxes on production inputs; provision of
developed and equipped lands with basic services; 24/7 operation possibility in Madayn’s cities; cooperation from
government bodies through Masar Investment Window; lease period of lands and facilities for up to 30 years,
renewable for the same period; right to sell and lease the buildings on the leased land and the right to involve new
partners in the lease contract, among others.

Recently, the Sohar Port and Freezone, which is among the four freezones in Oman marked 15 years of service.
Nearly 62% of Oman’s total imports entered through the port and freezone in 2017, alongside 42% of the country’s
exported volumes. In the same year, it also contributed to 4.8% of Oman’s total GDP.

Al Mazunah Industrial Estate Knowledge Oasis Muscat 

Mazunah Knowledge Oasis Muscat 
Shops and land available for rent. Rent ranges from 250 bissa OMR 7–9
to OMR 3 per sq m. 778,602
15,362,305 Office: 44,109 sq m
3,239,286 Lease contracts for office spaces last
760,714 for three renewable years
236 L​and: 304,284 sq m
Land contracts last for 30 renewable
Samail Industrial Estate years
Samail
208
OMR 1*
7,674,457
2,665,508
1,819,398
166

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

INDUSTRIAL
UPCOMING SUPPLY

Al Hadeetha Copper Mining & Copper Concentrated Plant (Masterplan)

Nizwa Sinaw highway, 160 km from Muscat
Al Hadeetha Investments and Al Tasnim Infrastructure Services
2019
OMR 27 million

Duqm Power and Desalination Plant

Duqm Special Economic Zone, Duqm
Oman Oil Company and Gulf Pacific Holding Company
Initial phase in 2020
OMR 185 million

Oman - Qatar Bus Assembly Project

Sezad
Karwa Motors
2020
OMR 104 million across all phases

Khazaen Economic City (Phase 1)

Barka

Phase 1 to include the first dry port in Oman, a free zone, and logistics and industrial complexes.
Oman Global Logistics Group
2020
First contract worth OMR 9.2 million awarded for infrastructure works

Gabbro Quarries Development Project

Khatmat Milaha

Qatar Primary Materials Company

2021

Duqm Refinery Project (Masterplan)

Duqm

Primarily designed to produce and recover naphtha, jet fuel, diesel, and LPG, the Duqm refinery
will include units for hydrocracking, hydrotreating, delayed coking, sulfur recovery, hydrogen
generation and Merox treating.

Duqm Refinery and Petrochemical Industries Company

2020–2021
OMR 3.5 billion

Developer Expected completion year Investment

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OMAN PROPERTY MARKET REPORT 2O19–2O2O

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

MARKET
SPOTLIGHT

From a small fishing settlement

to an industrial oil town

The Special Economic Zone Authority (SEZAD) manages, regulates,

and develops all economic activities in Duqm. It plans, designs, and
implements long-term strategies for infrastructural development Musandam
and attracts investments to promote a wide spectrum of economic Khasab Al Batina
activities.

Al Buraimi
Key among development plans in Duqm is utilising its strategic
location not only for economic activity but to also increase tourism
within the area. Duqm boasts beautiful beaches and moderate
weather and SEZAD has taken numerous initiatives to spur tourism
investments.

In 2019, SEZAD was granted powers of “Authority for Electricity

Regulation” and will regulate electricity and water.

Total Area (SEZAD): 2,000 sq km (the biggest

economic zone in the Middle East)

Available Units: Residential, commercial, industrial,

free-zone (SEZAD)

Development Unit type No. of BDR No. of units Monthly rent range (OMR)
Minimum Maximum
Duqm Frontier Town Apartment 1 250 660 660
Townhouse 3, 4 94 1,600 1,640
Say Village Apartment 1,2,3,4 20-40 per building 200 500
Villa 3,4 170 350 500

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

DUQM
Private sector organisations contributed over OMR 5.4
billion to projects in Duqm during 2018.

Numerous projects in Duqm have moved to UPCOMING SUPPLY

construction phase securing Oman’s non-oil future.

Renaissance Village, a key project, is self-sufficient and

can house up to 16,200 workers. Little India ITC
600,000 leasable
Population projected to increase drastically with the 2030-2035
development of large industrial, commercial and OMR 288 million
residential projects.

In 2004 the Duqm International Airport was established Oman Wanfang LLC
offering direct services with Oman Air to Muscat. 40,000
2035
Plans are underway to develop a railway network—
OMR 390 million
Oman Mineral Railway Plan—connecting different
regions including SEZAD
Al Madina Real Estate Company
741,000

Muscat Not Decided

OMR 283 million

Ash Sharqiyah Al -Hassad Investment Fund

Under construction
Ad Dakhiliya

Ad Dhahirah

Al Wusta

Dhofar Total area (sq m)

Expected completion year

Estimated Investment

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

A WORD FROM OUR

CHIEF ECONOMIST
Astute Omani real estate investors are focused now on the answers to
four important questions.

First, what is the correlation between economic diversification and

current real estate performance? Macro-economic indicators—
growth in particular—are likely to turn in less impressive results in
the short-term when a government pursues diversification from
hydrocarbons into other industries, especially if this is combined
with an emphasis on readjusting local labour markets away from
JULIAN ROCHE dependence on expatriates. This applies even to industries that have
CHIEF ECONOMIST regional comparative advantage, such as tourism, where Oman has
a head start. The evidence from the Omani market, judging from
cautious recent revival, is that this reset has now been thoroughly
priced in, with the market returning to fundamental trends, hence the recovery in transaction volumes
and even residential prices in some districts last year. The actual impact of diversification, however, is
yet to be experienced. We could call these three phases together the Tanfeedh effect.

Second, what will be the short-term impact of major long-term development projects? Khazaen
Economic City, Mina Al Sultan Qaboos Waterfront and the Quriyat ITC Project – all of these have a
development timeframe of more than 15 years, most probably 20 by the time all stages are mostly
completed. There is room for more generous visa treatment of investors and opportunities for the
extension of the Free Zone rules currently applicable in Duqm. Evidently, even significant growth in
future supply will not negatively affect prices if sufficient market confidence exists, which is the case
in some sectors such as logistics and tourism—numbers here were up by double-digits last year.

Third, what is the impact of the government’s budget deficit? Certainly, the rating agencies were
not kind last year, worried by debt-GDP metrics and the government’s expanded infrastructure
programme. But real estate investors have reason to evaluate macroeconomics more broadly,
incorporating forecasts of interest rates, unemployment and economic growth, rather than
concentrating on government deficits. Even the IMF now expects the deficits to moderate over the
next five years with a gradual reduction in the rate of increase of external debt and a decline in the
current account deficit .

Finally, from the standpoint of early 2020, naturally there is concern over the impact of the
Coronavirus. Judging from the economic impact of SARS, escalated for the rise in China’s global
economic footprint since then, as well as greater globalisation, economic projections will certainly
have to be revised downwards. But analysts need to be careful in their assessments of where the
impact will be most keenly felt, and when: most Omani tourism comes from the Gulf, for example, not
from Asia-Pacific, although the oil price has for the time being dipped lower than 2019 forecasts on
which ratings were based. Government expenditure has already been focused on infrastructure that
will support the real estate market and if global markets slow still further, the Omani government will
take compensating action. It is a complex, and currently evolving, macroeconomic picture.

Omani real estate investors will not be celebrating for some time yet. But careful attention to the
macroeconomics of the market will pay off.

1
https://www.imf.org/en/News/Articles/2019/07/03/pr19266-imf-executive-board-concludes-2019-article-iv-consultation-with-oman

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OMAN PROPERTY MARKET REPORT 2O19–2O2O

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 OMAN PROPERTY MARKET REPORT 2O19–2O2O

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40
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OMAN PROPERTY MARKET REPORT 2O19–2O2O

39
 Aditi Hariharan
Associate Partner Khalil Alzadjali
Strategic Consulting and Research Head of Oman

DUBAI ABU DHABI SHARJAH MUSCAT

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The information and analysis contained in this report is based on information from a variety of sources generally regarded to be reliable, and assumptions which are considered reasonable, and which was current at the time of
undertaking market research, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons.

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