Outlook appears bright for

the global halal economy

Oman's real estate market has been quietly gaining momentum over the past two years, and the latest data suggests the sector is entering a new phase of activity. Prices are rising again, transactions are picking up and government policies are slowly drawing in more foreign buyers.

A market regaining its footing

The scale of the price recovery is striking. Official figures show that Oman's real estate price index rose about 13.9% year-on-year in the fourth quarter of 2025, one of the strongest increases the market has seen in years. Muscat is leading the charge, with its price index surging 41.3%, followed by a 6.3% increase for Al-Batinah South and 4.8% for Musandum, according to the National Centre for Statistics and Information.

Villa prices rose 20.6% over the same period, while residential apartments were up 0.6%. After a period of relatively weak demand earlier in the decade, this increase suggests that confidence is returning to the market.

Transaction activity confirms that the market is heating up. The value of traded property jumped 27.1% in January compared to the same period last year, reaching OMR235.8 million (U.S.$613.27 million), while the trade value of sales contracts rose 37.5%, according to the latest NCSI data.

The traded value of mortgage contracts jumped 20% and the volume of contracts soared 27.8%, suggesting strong investor interest and positive sentiment around the housing market. Real estate's contribution to GDP at current prices also rose 1.1%, reaching OMR821.3 million (U.S.$2.13 billion) in the first nine months of 2025.

Demand is being supported by a mix of economic and demographic factors. Oman’s property market is expected to continue expanding over the coming years, with a spate of residential, mixed-used projects and integrated residential neighbourhoods that are expected to total 57,300 residential units till 2030, and 80,500 by 2040, according to real estate broker Cavendish Maxwell.

This growth is partly tied to infrastructure spending and long-term development plans under Vision 2040, which aim to diversify the economy and develop tourism, logistics and new urban areas. In this context, real estate can be seen as a direct expression of the country's broader economic ambition.

Opened for business

Foreign investment has been another important driver. Oman has gradually opened parts of its real estate sector to international buyers through designated zones known as Integrated Tourism Complexes, where foreigners can purchase property on a freehold basis.

The country’s 10-year renewable Golden Visa, which requires property ownership, is expected to support end-user and investor demand in the sales market over time, with its full impact anticipated to emerge gradually. One of the seven routes to a Golden Residency is the purchase of real estate in Integrated Tourism Complexes (ITCs), with a minimum threshold of OMR500,000 (U.S.$1.3 million) for 10-year residency and OMR250,000 (U.S.$650,000) for 5-year residency. These relatively high entry thresholds are designed to attract capital-rich investors as well as to tie residency to meaningful economic commitment.

Building at scale

At the same time, the market itself is changing. Demand is shifting toward lifestyle developments – waterfront communities, integrated resorts and mixed-use districts that combine housing, retail and tourism. Cities like Muscat, Salalah and Duqm are seeing more projects built around this concept.

One of the most significant projects is Sultan Haitham City, a government-backed smart city being built on roughly 14.8 million square metres on the outskirts of the capital, with investments exceeding ORM750 million (U.S.$1.95 billion) in the initial stages. The project will eventually include around 20,000 residential units for about 100,000 residents, alongside schools, healthcare facilities and commercial areas. Development is planned in four phases running from 2024 to 2045, reflecting the government’s long-term strategy to expand urban housing and modern infrastructure.

Another prominent sustainability-focused development is The Sustainable City – Yiti, a mixed-use project located about 30 kilometres from central Muscat. The development will include over 1,650 eco-friendly homes, urban farms, renewable energy systems and extensive green infrastructure designed to support net-zero living by 2040.

These developments illustrate how Oman's property market is increasingly built around large, master-planned communities that blend housing, tourism and sustainability. The country is quietly positioning itself as an established real estate destination.