Muscat: Oman has become the ultimate luxury haven for holiday makers and second home buyers alike.
Oman's vast range of striking visitor attractions, including ancient cities, stony deserts, rocky mountains, wadis and more than 2,000 kilometres of immaculate beaches is considered chic the world over. It was even named Destination of the Year 2008 by Vogue.
Mohammad Ayjaz of Hamptons International Oman says: "Oman offers an alternative to the normal Arabian identity, whether it's unparalleled scenic beauty, architectural or cultural perspective. Self-reliance and pride in cultural origin are prevalent in all aspects of life here."
With a population of approximately 2.3 million, Oman is being modernised and liberalised culturally and financially by its ruler Sultan Qaboos Bin Saeed.
Oman has one of the strongest economies in the Gulf; the government projects that GDP will grow 6 per cent this year, thanks largely to Vision 2020, which represents Sultan Qaboos's strategy for economic growth until 2020.
His appetite for real estate was stimulated by the 2004 property boom in Dubai and other parts of the Middle East.
As a result, he introduced legislation in 2004 — ratified in 2006 — allowing foreign nationals to purchase freehold property and land in designated tourist areas in Oman.
These projects, most of which are located in the capital Muscat, are referred to as Integrated Tourism Complexes (ITCs) and have inevitably fuelled greater demand for homes in the country.
Positive impact
"The impact of the Royal Decree pertaining to expatriates owning a home in Oman has been positive in attracting foreign direct investment in the country as well as opening up Oman as a tourist destination because of its scenic beauty and investment opportunities," says Ayjaz.
Oman has attracted more international property investors and holiday homeowners, and led to the evolution of an emerging and diverse property market.
"The introduction of ITCs was one of the key ingredients of planned growth in tourism levels," says Christopher Steel of Savills Oman.
"The Omani market offers a low-risk strategy for homeowners and wise property investors seeking a safe haven."
Steel, who refers to Oman as the "Switzerland of the Middle East", reports that around 70 per cent of people buying homes in ITCs are foreigners, mostly from the Indian subcontinent, Germany, Scandinavia and Britain.
The introduction of foreign buyers inevitably led to an increase in prices for properties between 2006 and 2008. But the market also has not been unaffected by the global financial turmoil.
Prices are reportedly as much as 25 per cent below their 2008 peak, which has led to some construction projects being put on hold.
"Prices for properties within ITCs dipped significantly from the highs of early 2008, but have now stabilised and are showing signs of recovery," says Matthew Wright of Cluttons Oman.
Oman, however, managed to steer clear of the high-risk, high-return, boom-bust investments which were so damaging to other property markets. This should stand it in good stead for the future.
John Roberts, of Craven Property Group, a property marketing consultancy, says the property market has already experienced an upsurge in activity this year.
Roberts said: "Sales slowed considerably during the global financial crisis as they did all over the world, but the market is recovering; sales have picked up since the turn of the year and [property] funds are now coming back into the country."
Realty development focuses on luxury
Muscat Hills Golf & Country Club: Newly completed apartments and villas in Oman's premier golf course development in the heart of Muscat with from two to five bedrooms.
The Wave, Muscat: A development of apartments, townhouses and villas on the coast to the north of Muscat International Airport.
The Malkai Barka: Majestic properties ranging from two-bedroom pool villas to six-bedroom estates overlooking the nine-hole Gary Player golf course. To be completed in 2012.
