Oman’s Real Estate Boom: A New Frontier for UAE Buyers and Regional Investors

Dubai: Oman is emerging as one of the Gulf’s most promising real estate markets, with ambitious plans that are catching the attention of investors and property buyers across the UAE and GCC. According to a recent report by real estate consultancy Cavendish Maxwell, the Sultanate is gearing up for a significant transformation, with plans to deliver 62,800 new residential units and 5,800 hotel rooms by 2030.

This large-scale development push aligns with Oman Vision 2040, which aims to diversify the country’s economy and enhance its appeal as both a residential and tourism destination.

Why UAE Investors Should Take Notice

Oman offers a compelling alternative for regional investors: affordable property prices, attractive rental yields, and the opportunity for freehold ownership through Integrated Tourism Complexes (ITCs)—designated areas where foreign nationals can legally own property.

In 2025 alone, Oman is expected to deliver around 5,500 new homes, building on a 3.6% increase in residential supply in 2024. Despite this, projected population growth—from 5.3 million today to 7.7 million by 2040—indicates that demand could soon outpace supply, especially in urban hubs like Muscat and Dhofar.

“Oman is undergoing a meaningful transformation,” said Khalil Al Zadjali, Head of Oman at Cavendish Maxwell. “The focus isn’t just on increasing housing supply—it’s about aligning development with Vision 2040’s broader goals of a diversified, knowledge-based economy.”

Spotlight on ITCs

Integrated Tourism Complexes are increasingly seen as a gateway for foreign investors. These zones allow for full foreign ownership, competitive pricing, and solid rental yields of 5% to 8%, rivaling returns in more mature markets like Dubai and Abu Dhabi.

• ITC apartment prices: 800–1,100 OMR/sq.m
• Dubai apartment prices: 1,600–2,100 OMR/sq.m
• Villa prices in ITCs: Starting at 750 OMR/sq.m

Luxury and branded residences are also gaining traction, with projects such as La Vie by Tivoli, St. Regis Residences, and Mandarin Oriental-branded homes targeting affluent buyers seeking lifestyle appeal and capital appreciation.

Hospitality Sector on the Rise

Tourism is a cornerstone of Oman’s economic diversification strategy. Over the next five years, the country aims to open 35 new hotels and resorts, increasing its hotel room inventory by 25%. These developments are concentrated in coastal and cultural hubs, further enhancing Oman’s attractiveness to both tourists and long-term investors.

Long-Term Outlook

While the real estate pipeline is robust, Cavendish Maxwell estimates that Oman will need an additional 340,000 homes by 2040 to maintain sustainable occupancy levels of 90%—a figure that far exceeds current development plans. This gap presents an opportunity for early movers, especially in high-demand ITC zones.

A Market Poised for Growth

Oman’s real estate sector is at an inflection point. With increasing infrastructure investments, government support, and pricing that remains accessible compared to other Gulf markets, Oman is positioning itself as a viable long-term investment destination.

For UAE residents, GCC nationals, and international buyers alike, the time may be right to explore Oman—not just for short-term returns, but for the potential of long-term value.