Tuesday, 31 Jan 2023
Economic recovery to have positive impact on Oman’s real estate market

Economic recovery to have optimistic influence on Oman’s genuine estate industry

Cluttons’ Muscat Spring 2018 Property Market Outlook report indicated the government’s robust push to increase all round financial development has resulted in a quantity of really encouraging developments for the home industry, such as the a lot-anticipated choice to enable the creation of a genuine estate investment fund (REIF). This will pave the way for investments in huge-scale genuine estate projects at substantially reduce value points and with far higher liquidity, in comparison to much more conventional genuine estate investment, according to the report.

Faisal Durrani, head of analysis at Cluttons, stated, “The increased ability of institutions and individuals to invest in income-generating real estate assets has the potential to provide a significant boost to the real estate sector in Oman, particularly since the regulations require that at least 75 per cent of REIF’s assets must be invested in Oman.”

Cluttons report highlighted that rental prices in Muscat seem to have stabilised, with a marginal 1.1 per cent decline in typical prices in the very first 3 months of this year. The biggest drops in rental values throughout the very first quarter had been observed in Azaiba, North Ghubrah, Muscat Hills and Madinat as Sultan Qaboos, whilst Bausher, Shatti al Qurum and Qurm registered a rise.

Cluttons expects demand, in the quick to medium term, to be impacted by the Ministry of Manpower’s choice to temporarily ban the issuance of function permits in crucial sectors. “However, if we continue to see gains in oil prices, the economy will continue to be driven upwards, ultimately boosting the residential market, particularly in terms of demand,” Matthew Wright, head of consultancy and industrial at Cluttons Oman, stated.

According to the report, workplace rents remains flat, with typical headline rents holding steady in the city’s crucial submarkets throughout the very first quarter of 2018.

“Even in a market that has faced uncertainties and setbacks in the form of a demand slump following the shock oil price rout four years ago, there are still occupiers who are drawn to high quality buildings and are committed to upgrading space,” Wright stated.

Information Source: Muscat Daily

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