Oman real estate boom: What it means for UAE buyers, investors

Dubai: If you're keeping an eye on regional property markets, Oman may be worth a closer look. The Sultanate is quietly laying the groundwork for one of the Gulf’s most ambitious real estate and tourism transformations, with 62,800 new homes and 5,800 hotel rooms planned by 2030, according to a new report by real estate consultancy Cavendish Maxwell.

For prospective buyers, renters, or investors across the UAE and GCC, Oman’s property pipeline offers something increasingly rare in the region: affordable housing, stable returns, and long-term investment potential, particularly through its Integrated Tourism Complexes (ITCs), which allow foreigners to own freehold property in designated areas.

According to Cavendish Maxwell, 5,500 new residential units are expected to be delivered in 2025 alone, building on a steady 3.6% increase in supply in 2024. But despite these numbers, rising population forecasts mean supply could still fall short in the years ahead. Oman’s population is expected to grow from 5.3 million today to 7.7 million by 2040—creating strong, sustained demand for housing, particularly in urban hubs like Muscat and Dhofar.

“Oman is undergoing a meaningful transformation,” said Khalil Al Zadjali, Head of Oman at Cavendish Maxwell. “It’s not just about building homes, but aligning with Vision 2040’s goals of creating a knowledge-based, diversified economy. Real estate and tourism are central to that.”

For many non-Omani buyers, Integrated Tourism Complexes are the gateway to property ownership in the country. ITCs allow freehold ownership by foreigners, offer competitive pricing compared to the rest of the GCC, and deliver rental yields of 5% to 8%, rivalling returns in Dubai and Abu Dhabi.

Typical ITC apartment prices range from 800 to 1,100 OMR/sq metre—a significant value compared to Dubai (1,600–2,100 OMR) or Doha (1,000–1,300 OMR). Villas in ITCs also come in lower, with prices starting at 750 OMR/sq metre.

Branded residences, another emerging trend in Oman, are also entering the mix. Luxury options now include La Vie by Tivoli, St. Regis Residences, and Mandarin Oriental-branded homes, catering to high-end buyers seeking prestige and potential capital gains.

Alongside residential growth, Oman is ramping up its hospitality offering. Over the next five years, the country plans to add 35 new hotels and resorts, increasing hotel room supply by 25%. Much of this growth is concentrated in coastal and cultural destinations that support Vision 2040’s tourism-led diversification.

For buyers and investors across the region, Oman presents a real estate market at a turning point. With growing infrastructure, supportive government policies, and pricing that remains accessible compared to larger Gulf cities, the opportunity may lie not just in short-term gains—but in long-term growth.

While Oman’s pipeline is strong, the market still faces pressure. To maintain sustainable occupancy levels of 90%, Cavendish Maxwell estimates 340,000 more homes will be needed by 2040—far beyond current delivery plans. That gap could mean opportunities for early movers, particularly in high-demand areas and sectors like ITCs.

Whether you're a UAE resident looking to invest abroad, a GCC national considering a second home, or an international buyer exploring new markets, Oman is positioning itself as a viable and increasingly attractive destination. The groundwork is being laid—literally—for something big.