The real estate market in the Sultanate of Oman is experiencing significant growth during 2024 and 2025, and is considered one of the fastest-growing markets in the Gulf region, with positive forecasts aimed at attracting more local and foreign investments. In this article, we present the key factors that make real estate investment in Oman a smart opportunity for investors seeking stability and rewarding returns.
Growth of the real estate market in Oman
The Sultanate of Oman registered robust growth in its real estate sector during 2024, with the volume of real estate transactions soaring by 29.5% to a value of OMR 3.3 billion. Transactions in the second quarter of 2025 reached approximately OMR 259.6 million.
This growth was particularly notable in the value of residential properties, with villas experiencing a 17.6% increase and apartments rising by 9.7%.
Furthermore, projections indicate a Compound Annual Growth Rate (CAGR) of 9.8% between 2024 and 2030, which is primarily driven by ongoing infrastructure development and the expansion of the tourism sector within Oman.
Increase in foreign investments and stimulating regulations
Foreign investments account for about 70% of real estate investments in Oman, and the current Omani law facilitates foreign ownership in selected areas while providing incentives for developers, which enhances confidence in the market. The existence of long-term visas linked to real estate investment attracts investors seeking stable and sustainable residency.
Oman Vision 2040 and economic diversification
Oman Vision 2040 includes a clear strategy for economic diversification away from oil, where the real estate sector plays a key role in building economic infrastructure and achieving sustainability. The demand for luxury properties is increasing with expectations of growth in villa and resort projects, enhancing opportunities for rental and investment returns.
Forecasts and performance of the residential sector
The residential real estate market holds the largest share of the market at 66.4% and is witnessing growth in land, apartment, and villa values, with notable performance in Muscat Governorate, which recorded a 38.1% increase in residential land prices during the second quarter of 2025. The increasing demand from expatriates and professionals in line with Vision 2040 is a significant driver for the market.
Conclusion
Real estate investment in the Sultanate of Oman in 2025 presents a unique opportunity that combines rapid market growth, legislative support, and economic diversification. By owning properties in selected areas, investors can achieve good rental returns and the potential for stable residency away from the fluctuations of other sectors. The real estate market in Oman is an example of safe investment and sustainable returns for both individuals and institutions.
In summary, real estate investment in Oman today is a smart strategic choice that combines economic growth, legal stability, and significant opportunities for expansion in the near future, making it one of the top investment destinations in the Gulf for 2024-2025.
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