Positive Trends

The Sultanate’s economic diversification programme, which is focused on moving the country away from its dependency on oil-based revenues is leading to tourism and industrial projects across Oman.

Consultancy Cavendish Maxwell in its annual Oman Property Market Report and Outlook for 2019 reveals several key insights into trends in the local real estate market, which will likely continue in 2019.

In the residential sector, prices continued to decrease as demand remained subdued overall. The report indicates that Muscat’s residential market continues to be oversupplied with apartment blocks, despite a gap in the market for high-quality villas and townhouses.

New regulations and incentives from Oman’s Ministry of Tourism have helped boost Oman’s hospitality sector. Cavendish Maxwell also notes that there are currently 72 hotels under construction in Oman, amounting to a total of 6,604 rooms. By the end of 2019, 55 of those developments are expected to be completed, adding 4,763 rooms to the Sultanate’s hotel supply, providing a much- needed boost to the tourism infrastructure.

Giving an industry perspective, Shashwar Al Balushi, CEO, Oman Society of Contractors says the economic condition is still low. “We envision the economy will pick-up during the first quarter of 2021. Only then we might see aggressive government spending,” he avers. To stimulate the economy in the present timeframe, the government needs to expedite the process of passing the baton to the private sector. “We feel this move requires simplification of procedures and processes and for the government to relinquish its role in the business and become more of a regulator.”