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An Omani neighbourhood. There is growing demand for affordable housing in the country. Image Credit: Gulf News Archives

Muscat: The Omani government is embarking on a large-scale construction plan to provide affordable yet modern residential areas for nationals across all governates in the country.

The announcement, which was made on Wednesday by Ali Al Sunaidi, Minister of Commerce and Industry, comes amid a growing demand for affordable housing in the country. Al Sundaidi said the projects would be financed through mutual funds, private sector companies or joint partnerships between the government and private sectors.

His Majesty Sultan Qaboos Bin Said assigned the Supreme Council for Planning to oversee the projects. Ahmad Al Raisi, a Seeb resident, is very happy with the announcement.

Speaking to Gulf News, he said that finding affordable housing for Omanis has become a huge problem. “Married Omanis often have to live with their families because they cannot afford to rent a flat in Muscat,” he said.

Rashad Al Mawali, a Bausher resident, said that building such housing units will help the younger generation buy land plots and build houses for their future families.

He applied for a land plot in Muscat over seven years ago and still has not received one, like many other Omanis still waiting as there is a severe shortage of plots in the capital.

Every Omani national, according to the law, has a right to obtain a land plot for free. Juma Al Wahaibi, a resident of Yiti area of Muscat, lives in a small room with his four children in his family house.

“We are really suffering. I don’t have a land plot and my salary is to low to make ends meet for my family,” says Al Wahaibi.

There are 6,000 families currently still waiting for government housing and 30,000 families live in shared houses, according to the Ministry of Housing.

Under the new project, Omanis can apply for a housing loan with affordable prices from the Omani Housing Bank with interest not exceeds 3 per cent.

Omani families of social security category can obtain houses for free as they qualify for financial assistance from the government.

Mohammad Al Bausaidi, the chairman of Oman Real Estate Association says the new project will boost family stability.

“Its better for Omani nationals to obtain a house in a residential complext instead of obtaining a land plot because many Omanis cannot afford to build a house,” says Al Bausaidi.

The Ministry of Housing distributes only 2,000 land plots in Muscat annually. By this rate, it would take 60 years to issue permits to all applicants.

In fact, the government has plans to level mountains on the outskirts of the capital to make room for some 86,000 new land plots.

According to a study by the Supreme Council for Planning a land plot in Muscat averages between OMR 25,000 to OMR 40,000.

Some Omanis complain of poor services in their areas, including lack of roads, electricity, sewage and water in some plots.

Ahmad Al Muqbali, a resident of Sohar, told Gulf News that he took a loan to build his house, and now that it is finished there is no electricity and water.