Introduction
The Sultanate of Oman is the top investment destination in the Gulf for 2026, with its emerging real estate market presenting a golden opportunity with low prices and accelerated growth supported by official data. The sector recorded a growth of 29.5% in 2024, reaching 3.38 billion Omani Rials, with a projected CAGR of 9.19% to reach a housing market of 6.80 billion dollars by 2029, making it the best choice compared to other Gulf countries with saturated markets.
Record growth supported by official data
Real estate trading in Oman has seen a cumulative increase of 37.6% over 5 years (2020-2025), totalling 14.7 billion Omani Rials, with a contribution to GDP of 1.08 billion Rials in 2024 alone. South Al Batinah recorded a growth of 244.4%, while foreign trading reached 77.7 million Rials with a growth of 19.4%. In the first half of 2025, trading reached 1.3 billion Rials, confirming the continued momentum.
An emerging market with competitive prices before the explosion
The Omani real estate market is "fresh" compared to Dubai (where apartment prices can reach 2 million dirhams) or Riyadh, with apartments in Muscat starting from 35,000 Omani Rials (approximately 90,000 dollars), offering rental yields of 6-8% annually. Mordor Intelligence forecasts the residential market to grow from 4.38 billion dollars in 2024 to 6.80 billion by 2029, driven by 190,709 building permits (growing at 3.9% annually) and major projects.
Advantages that make Oman the best Gulf country
Political and economic stability:The World Bank ranks Oman as the most cost-effective country in the Middle East, with low operating costs and a competitive workforce.
Absence of income tax:Full returns for investors without deductions, with attractive tax policies.
Free foreign ownership:In tourist complexes and designated areas, with a 10-year renewable residency upon purchasing property worth 500,000 Rials.
World-class infrastructure:Highways, ultra-fast internet, and 'Surooh' projects like Sultan Haitham City (1 billion riyals investment).
Comparison of Oman with Gulf countries: the race for growth.
| The state. | Trading growth 2024. | Residential market size 2029. | Rental yields. | Average apartment prices. |
|---|---|---|---|---|
| Oman. | +29.5%. | 6.80 billion dollars. | 6-8%. | 35-70 thousand riyals. |
| Saudi Arabia. | +15%. | Saturated. | 5-6%. | 1-2 million riyals. |
| UAE. | +10%. | Saturated. | 5-7%. | 1-3 million dirhams. |
| Qatar. | +8%. | Stable. | 4-6%. | 2-4 million riyals. |
Oman excels with its rapid growth and low prices, with 4,876 Gulf ownership titles (2020-2024), mostly Emirati and Kuwaiti.
Drivers of the upcoming boom in 2026.
Oman Vision 2040 drives diversification away from oil, with future city projects (Yiti, Sultan Haitham), ITC tourism complexes, and real estate investment funds listed on the Muscat Stock Exchange. Electronic facilities, updates to ownership legislation, and support for mortgages (2.2 billion riyals in 2024) enhance liquidity. Gulf foreign investments (975 titles annually) affirm confidence.
Specific investment opportunities in Muscat.
Sultan Haitham City:15 million m², 20,000 housing units, near the largest Middle Eastern park.
Muscat Bay:Coastal apartments with high tourist returns.
Wadi Zaha:760 units at 90 million riyals, 60-month interest-free instalments.
In summary: Invest now before the boom.
The emerging Oman market offers early entry at 'fresh' prices before the expected rise, with legal security and government support. Be part of the best growing Gulf market – register for a free consultation today.