Real Estate
From The Report: Oman 2017
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Sentiment in Oman’s real estate sector remains cautiously upbeat in the face of a downturn in the global price of oil and the consequent impact on government spending plans in the sultanate. Residential rental prices have softened in some areas, with landlords preferring to trim prices to avoid untenanted periods in their properties, but in new fashionable developments lettings and sales have been holding firm. This is particularly true in the planned communities known as Integrated Tourism Complexes, which have been popular with Omanis as well as international buyers. In the retail and hospitality sectors several ambitious projects are either in the planning stages or under way, driven by optimism among larger corporate investors about the medium-term prospects of a country with a rapidly growing population and a long track record of peace and stability. This chapter contains an interview with Nasser Al Sheibani, CEO, Al Mouj Muscat.

Articles from this Chapter

Overview

Steady breezes: Prices soften, but market fundamentals and long-term demand forecasts remain strong
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Sentiment in Oman’s real estate sector remains cautiously upbeat in the face of a downturn in the global price of oil and the consequent impact on government expenditure plans in the sultanate. Residential rental prices have softened in some areas, with landlords preferring to trim prices to avoid untenanted periods in their properties, but in new fashionable developments lettings and sales have been holding firm, according to estate agency records. This is particularly true in the planned communities…

Interview

The right direction: Nasser Al Sheibani, CEO, Al Mouj Muscat, on recent property development trends in the sultanate
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Interview: Nasser Al Sheibani How much concern is there among developers about oversupply in the market? NASSER AL SHEIBANI: It is no secret that the local market is going through a difficult period, given the overall macroeconomic situation of the country. The supply of property continues to grow despite the fact that demand is not growing nearly as quickly. This downturn has been exacerbated by a number of regulatory changes, including the municipality’s decision to raise taxes on real estate…

Analysis

Rule matters: Changes in fees and reporting requirements affect the market
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Faced with lower oil revenues than in previous years, it is perhaps unsurprising that the government of Oman should look to more vibrant areas of the economy as a source of additional tax revenues. However, when the Ministry of Housing hiked real estate transaction fees for sales and leasing in February 2016, from 3% to 5% of the land value, some real estate experts were concerned state revenues might fall and market transparency decrease. Their argument was that, faced with an increase in fees,…