Oman Luxury Residential Real Estate Market Size
| Study Period | 2024 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | |
| CAGR | 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oman Luxury Residential Real Estate Market Analysis
The Oman Luxury Residential Real Estate Market is valued at about USD 1 Billion and is expected to register a CAGR greater than 6% during the forecast period.
- Dar Global, the luxury international real estate developer announced the launch of sales for AIDA, a unique mixed-use gated community located in Muscat, Oman. AIDA features a Trump golf course and offers the ultimate luxury golf, residential, and hospitality experiences. AIDA is a joint development project between Dar Global and OMRAN Group, Oman's leading tourism development company. The project spans over 3.4 million square meters and is located in the heart of Muscat, overlooking the Sea of Oman. The project's gross development value is USD 2.4 billion, with phased construction taking place over ten years.
- COVID-19 had impacted the Oman luxury residential real estate sector, as this sector in Muscat experienced declined demand due to pandemic restrictions. Despite the disruption, now the market is in the recovery phase. The luxury residential real estate market is experiencing significant growth, such as the potential growth of the hospitality and travel sector due to relaxed restrictions and vaccines rolled out.
- The Hay Al Naseem project, the first of the integrated Villa housing developments in Oman being developed under Al Souroh, will serve as a broad model for the new developments. Hay Al Naseem is spread across 350,000 square meters. It functions as a mixed-use development with apartments, villas and townhouses, commercial facilities, public spaces, and recreational services.
- Omran and Saraya Holding Oman, Muscat's premier resort village, is currently developing a residential project under the name of Muscat Bay. This is a natural, peaceful place that will be home to 435 exclusive residential units that combine attractive waterfront and mountainside views with easy access to modern amenities. In addition, two five-star hotels will form the major leisure components of Muscat Bay, providing guests with a luxurious retreat where the mountains meet the Arabian sea.
Oman Luxury Residential Real Estate Market Trends
Supply of Residential Buildings
As the demand for luxury brand housing units continues to rise, Eagle Hills Muscat, a joint venture between Eagle Hills Abu Dhabi and Ezz International, opened a new sales centre in the Sultanate of Oman. The first premium brand residences in the Sultanate of Oman and the first "Residences at Mandarin Oriental" project in the area were built to offer a five-star lifestyle. It is situated along Shati Al Qurm in Muscat's city centre. Through its harmony with the spirit of Muscat, whether in the city's overall scale or its minute details with its distinctive design, the project adds an artistic touch to the site's inherent qualities.
Despite fluctuating oil prices and the impact of the coronavirus pandemic continuing to threaten Oman's economy and real estate sector, Al Mouj Muscat stated the demand for ultra-luxury properties remains stable. The debut of the development's latest ultra-luxury gated community, Golf Beach Residences, a collection of six-bedroom villas and mansions within the integrated tourism complex, was met with "great demand," according to Arabian Business.
The 19 villas are being introduced in the Shatti District's northern sector of Golf Beach Residences, flanked on each side by the St Regis Hotel, which is set to open at the end of 2022. Murooj Lanes, an 'entry level' property, was launched in Q4 of 2020, and roughly 300 flats were sold out in 48 hours, demonstrating the significant demand for luxury residential properties.
Expatriates over the age of 23 can purchase housing units in multi-story residential and commercial buildings under the usufruct system for 99 years if they hold a valid residence permit for at least two years.
While the Omani population has continued to grow steadily, expatriate numbers started to drop gradually. The expatriate population has started to stabilize over recent months, but there is the potential for further reductions in numbers due to the long-term economic impacts of the pandemic and a growing focus on the Omanisation of the workforce, particularly for white-collar positions.
Current evidence is that there is a significant and growing supply/demand imbalance while many of the luxury residential units developed over recent years have been ill-considered in terms of location, design, quality, and/or target market. The proportion of well-considered, good-quality, as a result of the supply and demand mismatch, average rental values have been consistently declining across the city. Villas generally performed slightly better, with average reductions of 20% to 30% over the last 18 months. The more limited supply of villas/townhouses in the more exclusive locations of Shatti Al Qurum, Muscat Hills, and Al Mouj showed the most resilient performance due to restricted supply relative to good demand.
Increase of Luxury Residential Properties
The launch of Nikki Beach Resort & Spa Muscat was announced by Nikki Beach Global, a luxury hospitality brand. Along with the resort, Nikki Beach Muscat will also include homes because of a partnership with Omran Group and an adjacent beach club. The five-star hotel is scheduled to open in the autumn of 2023 and has already won awards for "Best New Hotel Construction and Design Oman" and "Best New Hotel Construction and Design Arabia" at the International Property Awards. The opening of the beach club will coincide with that of the homes.
Al Mouj Muscat is a master-planned lifestyle community, home to 8,000 residents from 85 nationalities. It has redefined urban living in the region with an impressive portfolio of oceanfront residential properties, a vibrant dining and retail district, and world-class leisure amenities. Zunairah was designed and constructed to reimagine a market-leading, ultra-premium luxury beachfront home product, offering families the opportunity to enjoy a unique and exclusive beachfront gated community, located at the edge of the ocean. The design of Zunairah was inspired by one-on-one meetings, where the designs connect with buyers and ignited their interest in the possibilities that the homes would bring. Details such as a garden suite that can be adapted, for example, an outdoor kitchen or music room or gym, reflects individual style and allows owners to customise the space to create a home to suit every aspect and stage of family life. This close contact continued throughout, including a bespoke handover ceremony for each family.
Oman Luxury Residential Real Estate Industry Overview
The Oman Luxury residential real estate market is fragmented with many players. Some of the major players in the market are AL Hudu Real Estate Oman, Aqwaas Real Estate, Tibiaan Properties, Saraya Real Estate, Savills Oman - Muscat, etc. The growing presence of international funds and foreign capital is increasingly attracting domestic developers to have joint ventures to gain a foothold in the country and enhance their financial strength and management expertise.
Oman Luxury Residential Real Estate Market Leaders
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AL Hudu Real Estate Oman
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Aqwaas Real Estate
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Tibiaan Properties
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Saraya Real Estate
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Savills Oman – Muscat
*Disclaimer: Major Players sorted in no particular order
Oman Luxury Residential Real Estate Market News
- March 2023: Tibiaan Properties and Al Tamman Real Estate Company, a subsidiary of Muscat Overseas Group, signed a contract to develop and market the first commercial development of its kind in the Dhofar Governorate specifically in Al Saada area, Salalah. This project will include commercial units dedicated to various activities such as office spaces, retail spaces, restaurants, cafes, etc. This cooperation comes into place to deliver premium projects in Dhofar Governorate, where demand is rising for quality real estate projects. The project name 'Ajwaa' is an Arabic word that refers to the beautiful weather Salalah is enjoying throughout the year, thus reflecting the opportunities this project offers to investors in both corporates and individuals capacity.
- April 2022: Barka Real Estate Development Company and Tibiaan Properties Company announced the launch of an integrated commercial project - Massar - in the wilayat of Barka in the South Batinah governorate. H E Dr Khalfan al Shuaili, Minister of Housing and Urban Planning, a number of senior officials and business owners witnessed the launch.
Oman Luxury Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Market Scenario and Consumer Sentiments
- 4.2 Luxury Residential Real estate Buying Trends Socio-economic and Demographic Insights
- 4.3 Government initiatives and regulatory Aspects for the Luxury Residential Real estate Sector
- 4.4 Insights into Interest Rate Regime for General Economy and Real estate Lending
- 4.5 Insights into Rental Yields in the Luxury Residential Real Estate Market
- 4.6 Insights into Affordable Housing Support provided by Government and Public-Private Partnerships
- 4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
- 4.8 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
- 5.1 Market Drivers
- 5.2 Market Restraints/Challenges
- 5.3 Market Opportunities
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5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Threat of New Entrants
- 5.4.2 Bargaining Power of Buyers/Consumers
- 5.4.3 Bargaining Power of Suppliers
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Condominiums and Apartments
- 6.1.2 Villas and Landed Houses
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6.2 By Key Cities
- 6.2.1 Muscat
- 6.2.2 Dhofar
- 6.2.3 Musandam
- 6.2.4 Salalh
- 6.2.5 Rest of Oman
7. COMPETITIVE LANDSCAPE
- 7.1 Market Overview
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7.2 Company Profiles
- 7.2.1 AL Mouj Muscat
- 7.2.2 Alfardan Heights
- 7.2.3 Wujha Real Estate
- 7.2.4 Al-Taher Group
- 7.2.5 Maysan properties SAOC
- 7.2.6 Noor Oman
- 7.2.7 Harbor Real Estate
- 7.2.8 Royal Estate World
- 7.2.9 Al Madina Real Estate Company Muscat
- 7.2.10 Better Homes*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
Oman Luxury Residential Real Estate Industry Segmentation
The Oman Luxury Residential Real Estate Market is segmented by Type (Apartments and Condominiums, Villas, and Landed Houses), and by Key Cities (Muscat, Dhofar, Musandam, and the rest of Oman). The report offers market size and forecasts for the Oman Luxury Residential Real Estate Market in value (USD Billion) for all the above segments. The report offers market size and forecasts for the Oman Luxury Residential Real Estate Market in value (USD Billion) for all the above segments.
| By Type | Condominiums and Apartments |
| Villas and Landed Houses | |
| By Key Cities | Muscat |
| Dhofar | |
| Musandam | |
| Salalh | |
| Rest of Oman |
Oman Luxury Residential Real Estate Market Research FAQs
What is the current Oman Luxury Residential Real Estate Market size?
The Oman Luxury Residential Real Estate Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Oman Luxury Residential Real Estate Market?
AL Hudu Real Estate Oman , Aqwaas Real Estate, Tibiaan Properties, Saraya Real Estate and Savills Oman – Muscat are the major companies operating in the Oman Luxury Residential Real Estate Market.
What years does this Oman Luxury Residential Real Estate Market cover?
The report covers the Oman Luxury Residential Real Estate Market historical market size for years: . The report also forecasts the Oman Luxury Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Oman Luxury Residential Real Estate Industry Report
Statistics for the 2024 Oman Luxury Residential Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oman Luxury Residential Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
