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Oman's real estate sector has demonstrated remarkable growth in the fourth quarter of 2024, reflecting the nation's strategic economic initiatives and increasing investor confidence.
Main points:
- Significant Increase in Transaction Values:
- By November 2024, the total value of real estate transactions reached OMR 3.13 billion (approximately $8.13 billion), marking a 28.1% year-on-year increase.
- Rise in Sale and Mortgage Contracts:
- Sale contracts experienced a 3.1% annual increase, totaling OMR 1.1 billion.
- Mortgage contracts saw a substantial 47.9% growth, amounting to OMR 2.02 billion.
- Growth in Property Dealings:
- As of August 2024, property dealings rose by 5.4%, reaching OMR 1.93 billion (about $5 billion).
- Increased Foreign Investment:
- Properties issued to GCC nationals increased by 12.3%, indicating a growing interest from neighboring countries.
Factors Driving Growth:
- Government Initiatives: Oman's government has implemented policies to attract foreign investment, including easing property ownership laws for non-Omanis and offering tax incentives for developers.
- Economic Diversification: Efforts to diversify the economy away from oil dependency have led to increased investments in sectors like tourism, logistics, and technology, boosting demand in the real estate market.
- Infrastructure Development: Significant investments in infrastructure projects, such as new roads and airports, have enhanced the appeal of Oman's real estate market.
- Favorable Mortgage Terms: Low interest rates and accessible mortgage options have made property purchases more attainable, stimulating market demand.
Outlook:
The positive trajectory of Oman's real estate market is expected to continue, supported by strategic government policies, economic diversification efforts, and ongoing infrastructure development. The sector's robust performance in Q4 2024 underscores its resilience and attractiveness to both domestic and international investors. As Oman advances its Vision 2040, focusing on sustainability and innovation, the real estate market is poised for sustained growth, offering promising opportunities for investors and stakeholders alike.
