Real Estate
From The Report: Oman 2018
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Market pressures have continued to weigh on Oman’s real estate sector since oil prices fell from their historic highs, driving the sultanate to adjust to lower revenue by trimming budgets and paring back some investment. Growth in public payrolls and jobs – a key driver of real estate demand – slowed in 2016 as the government reduced spending by 7.5% to tackle a fiscal deficit surpassing 20% of GDP; weaker economic conditions have likewise constrained job creation in the private sector. This deceleration has put pressure on both demand and property prices. While residential rents in Muscat, normally a sector bellwether, were 20-25% below their 2014 peak in September 2017, there are hopes they are beginning to stabilise.

Articles from this Chapter

Overview

Prime property: Pockets of opportunity emerge in a market with exposure to oil price swings, yet solid fundamentals
OBG
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Market pressures that have weighed on Oman’s real estate sector since oil prices fell from their historic highs three years ago continue to affect its performance, and the state has adjusted to lower revenues by trimming budgets and paring back some investments. Growth in public payrolls and jobs – a key driver of real estate demand – slowed in 2016 as the government reduced spending by 7.5% to tackle a fiscal deficit surpassing 20% of GDP, and weaker economic conditions have likewise…

Analysis

Action plan: Changes at a key sector institution aim to streamline processes, increase confidence and revive the industry
OBG
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Four initiatives under way at the Ministry of Housing (MoH) could have a considerable impact on the broader real estate sector over the course of 2018, namely the centralised processing of transactions, passage of new regulations, software to ease information collection and create indices, and an affordable housing programme. “The aim is to help organise and better regulate a market that has long been fragmented, giving investors new confidence in the end state of their project,” Said…