Muscat Oman Real Estate
Oman's real estate sector is getting a boost as expats in the country buy homes as a form of long-term investment, the Ministry of Housing and Urban Planning (MHUP) said.
Property prices are also quite reasonable, with a three-bedroom villa with pool costing $650,000. The newly built residential areas will offer one-bedroom apartments priced between $1,500 and $2,200 per square foot. The average price of a one bedroom apartment is USD 1300 (O MR) in Al-Qasr, formerly known as Wave. A two-bedroom apartment costs $74,000 ($192,000) for a two-bedroom, while a three-bedroom apartment costs $2,400 ($250,800) and a four-bed apartment costs $2,400 ($2,800).
Hai al-Naseem, also known as Barka Integrated Residential Project, is located in Al-Qasr, a residential area in the city of Muscat, the capital of the United Arab Emirates. It is currently proven that high density residential areas and high levels of residential construction perform more resiliently. By comparison, low-growth residential and business districts, such as Abu Dhabi and Dubai, are more resilient and can point the way forward.
Al-Ismaili explained how this would help the country's real estate sector: "It will be good because it will bring in more money and benefit the real estate sector. It is expected to have a positive impact on the economy of Muscat and to support investment in real estate development projects.
The fall in real estate demand caused by the falling number of guest workers could be mitigated, for example, by greater freedom of labor in Oman, Al-Ismaili said. Real estate appraisals and mortgage contracts remain a key concern for Oman due to the lack of enforcement of rules.
Another way for investors to get a foothold in the real estate market is through the Real Estate Investment Funds (REIFs), which were launched in 2018. Residents of Oman, expats and Omani nationals are allowed to purchase property development projects listed on Muscat Securities Market. This is one of the ways the government is pursuing to attract foreign investment into the country. In order to keep up with global trends by controlling the movement of money, the ministry makes these available for sale in such properties for use in the country's real estate sector.
After purchasing a property in Oman, the buyer can pay all the formalities he or she has to complete, such as taxes, insurance, taxes and duties on the property.
The introduction of VAT could increase the cost of real estate transactions and construction projects, but the rules for the tax have not yet been published, so it is unclear whether it will apply to the real estate sector or not. Still, the move is part of the government's efforts to attract foreign investment and revive the housing market. In addition to the continuing interest in the development of the ITC, there has been an increasing interest in Oman from foreign investors in recent years. The Oman Real Estate Expo, which will take place in Muscat in 2021 and is aimed at investors and developers, has shown strong interest from foreign companies in investment in real estate in Saudi Arabia and Oman, as well as other countries.
In terms of growth and price growth, the country's real estate market is led by North Al-Batinah, Muscat governorate and the capital Oman, with the highest number of mortgage transactions, followed by governors Al-Qasr and Al-Qadir, and the Omani cities of Dhofar and Salalah. In the first half of this year, North al-Batinsah recorded the highest number of sales transactions in Oman since the ITC was introduced in April, according to the latest figures from the Ministry of Finance. The muscaterers continue to record a high number of sales transactions, followed in recent years by the development of real estate projects in the city and the construction of new residential projects.
In the first half of this year, North al-Batinsah, Al-Qadir, Dhofar and Salalah recorded a 13% decrease in rental prices compared to the same period last year and a 14% increase for Dh of the city of Muscat. However, the growth in industrial activity and residential development in these areas, which is expected to affect the purchase and rental price, has created demand for the sought-after and very expensive residential properties in Muscaterers and the construction of new residential projects in these areas.
Ihsan Kharouf, head of Savills Oman, said expats played a significant role in influencing demand for property. Property advice Savill said he expected rental prices to rise in Muscat due to increasingly challenging economic conditions. Commenting on the impact of the exodus of foreigners, Ihsans Kharsouf, head of Savilling Oman, said: "The expatriates have played an important role in influencing claims for property." Expatriates have played an important role in developing Muscaterers and building new housing projects in these areas.
The ministry had consulted with private companies in the real estate sector to set conditions and regulations. He said: "If there are foreigners in Oman who buy property on their behalf without knowing their contractual arrangements, they are known. The main companies are Alargan and Towell Investment Company, which focus on middle income and affordable housing, and a number of other companies.