Real Estate
From The Report: Oman 2020
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Oman’s real estate market has continued to feel the effects of slower economic growth over the past year. Rental rates have declined by more than 25% since recent highs were reached in 2014, and 2019 saw prices continue to fall amid concerns about oversupply and expatriate workers leaving the country. The residential segment has been the most affected, with a large amount of recent developments placing pressure on rental and sales prices. However, with strong growth expected in the retail and industrial sectors, related real estate offerings present unique opportunities. The sector’s primary regulatory body is the Ministry of Housing. This chapter contains an interview with Nasser Al Sheibani, CEO, Al Mouj Muscat.

Articles from this Chapter

Overview

Pockets of opportunity: In an environment of low rents and occupancy rates, identifying areas that hold promise is key for investors and developers
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Oman’s real estate market has continued to feel the effects of slower economic growth over the past year. Rental rates have declined by more than 25% since recent highs were reached in 2014, and 2019 saw prices continue to fall amid concerns about oversupply and expatriate workers leaving the country. The residential segment has been the most affected, with a large amount of recent developments placing pressure on rental and sales prices. However, with strong growth expected in the retail…

Interview

Matching demand: Nasser Al Sheibani, CEO, Al Mouj Muscat, on residential trends, foreign property ownership and mixed-use developments
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Interview:Nasser Al Sheibani To what extent is oversupply an issue, and what are the trends within the residential segment? NASSER AL SHEIBANI: Oversupply is not the main issue per se; rather, the issue is the fact that real estate offerings do not correctly suit the market in terms of price points and style. For example, in Oman we are seeing an uptick in both young, married Omani couples and retirees who are looking for residential units in integrated tourism complexes (ITCs). Their respective…

Analysis

Integrated investment: Developers foresee mixed-use communities and new regulations boosting property uptake among expatriates
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As it eases its dependence on oil and gas, Oman has turned to integrated tourism complexes (ITCs) as a conduit for boosting construction, real estate and tourism activity. ITCs are mixed-use developments comprising residential areas, hotels, resorts, leisure activities such as golf, and other amenities, and are currently the only places where non-GCC nationals can purchase property in Oman. To date ITCs have proven a successful model in the country, generating around 3% of GDP as of 2018.…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
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Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
OBG
plus

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…