Markets / Network Territory
Oman is an important part of GCC and it serves as the destination of choice for many European tourists in the Middle East, due to its natural beauty. It is also a business hub to many manufacturers interested in exporting products to North America, as it has a Free Trade Agreement in place with the United States. The currency is pegged to the dollar and it is highly stable. Oman is considered to be one of the safest countries in the region. The country has experienced an 8% population growth in the past year, while the average growth year on year, seen between the 1950-2010 did not exceed 2-4%. This is a testament to the economic growth in the country.
The population is fairly young and educated, and its exposure to international markets such as Dubai and Abu Dhabi has influenced the business culture. The commercial real estate market is growing at a fast pace and investors find opportunities with higher rates of return from multi-national tenants, when compared to other neighboring countries.
This is partly due to the lower cost of living. According to NUMBEO, "You would need around $3,000 in Muscat to maintain the same standard of life that you can have with $5,200 in Dubai (assuming you rent in both cities).
Large-scale developments are generally funded by a partnership between government and local developers. Several areas are designated as FREEHOLD, which allows foreigners to purchase property in their personal name without a local partner. The housing market's strength is mainly fueled by the young population moving toward stability.
Rents in low to mid range housing remains strong due to the lack of inventory. A shortage in Class A Office space has forced many companies to convert residential villas on major roads to meet the demand. The rents remain stable and high-end offices in Shutti al Qurum area are in high demand.
The retail market is changing with large malls and modern open-area community centers entering the market, offering entertainment and a higher quality of shopping experience. The rents remain strong and occupancy is above 90% in this sector.
The economy is highly concentrated on oil revenue, therefore, the government is steering focus toward tourism and plans to increase its visitors by 30%, which will help the hospitality sector. The occupancy rates are well above 75% across different classes, and the number of four and five-star hotels are relatively low when compared to neighboring countries.
NAI Oman is a commercial real estate advisory firm, with a focus on education, healthcare, hospitality, office, and retail in the Sultanate of Oman. We provide assistance to institutional investors when dealing with private and government sector for leasing, acquisition, disposition, valuation, feasibility analysis, project management as well as property management services in Muscat and Salalah. With over two decades of experience in development across different verticals, our team can assist you in finding the right solution.
Industrial, Investment, Land, Office, Owner's Rep, Retail, Tenant Rep
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