Muscat Daily

New de­ci­sion on sell­ing real es­tate to non-Oma­nis is­sued

- Our Correspond­ent Business · Investing · Real Estate · Urbanism · Urban Planning · Society · Department of Building and Housing · Residential Real Estate

H E Dr Khal­fan bin Said bin Mubarak al Shu’aili, Min­is­ter of Hous­ing and Ur­ban Plan­ning, has is­sued Min­is­te­rial De­ci­sion No 357/2020 re­gard­ing reg­u­la­tions on sell­ing res­i­den­tial real es­tate units un­der the usufruct sys­tem to non-Oma­nis in multi-storey com­mer­cial and res­i­den­tial build­ings in some lo­ca­tions in Mus­cat gov­er­norate.

The de­ci­sion per­tains to nonO­ma­nis - whose stay in the sul­tanate is not less than two years - sub­mit­ting a usufruct ap­pli­ca­tion.

It comes as part of a pack­age to stim­u­late in­vest­ments in the real es­tate sec­tor to achieve spe­cific growth rates to en­hance per­for­mance of re­lated ac­tiv­i­ties and achieve sus­tain­able devel­op­ment.

The de­ci­sion states that the seller will pay three per cent of the res­i­den­tial real es­tate unit’s value, and the buyer five per cent, upon its reg­is­tra­tion. Usufruct agree­ments are valid for 50 years, re­new­able for a pe­riod not ex­ceed­ing 99 years.

The de­ci­sion aims to cre­ate a com­pet­i­tive busi­ness en­vi­ron­ment at­trac­tive to in­vestors in the real es­tate sec­tor while also in­ject­ing cash into the mar­ket.

The usufruct sys­tem is one of the mea­sures em­ployed to di­ver­sify the econ­omy dur­ing the cur­rent oil price slump. It also aims to keep pace with global trends and in­vest­ments in the real es­tate sec­tor in the sul­tanate.

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