Property for sale in Muscat

Rents have been skyrocketing in recent years, especially in Muscat and other high-demand coastal areas. In June 2008, inflation climbed to 13.7%, an 18-year high. Similar to other countries in the Gulf, Oman’s inflation has been driven by rising food prices and by rising rents. Get more information on property for sale in Oman.

Views on the Muscat real estate :

Housing rents in Muscat have more than doubled over the past year. In Ruwi, Muscat’s business district, monthly rents for one-bedroom apartments are now around OMR250 (US$650) to OMR300 (US$780), up from only OMR100 (US$260) a year earlier.

In Azaiba, Muscat’s coastal village, two-bedroom apartments rent for OMR500 (US$1,300) to OMR600 (US$1,560) per month; up from OMR250 (US$650) to OMR300 (US$780) a year earlier.

In June 2008 new rental regulations were introduced to protect tenant rights, because of the housing rents surge. Landlords may now only increase the rent every 3 years, and by a maximum of 7% of the annual rent value stipulated in the lease contract.

The law also bars landlords from evicting tenants before the agreed lease period. A minimum lease period of 4 years for residential property for sale and 7 years for commercial property for sale was imposed.

Despite the surging residential land prices in Oman, they are still among the cheapest in the Middle East. The growing number of expatriate workers, the liberalisation of real estate laws and the young demographics of Omanis led housing demand to rise. Huge oil revenues drive the strong economy and rising purchasing power. Foreign investments and healthy non-oil sectors added to the boom in the real estate market. On the supply side, soaring construction costs and land prices pushed property prices further.

In February 2006, a Royal Decree allowed foreigners and expat workers to own real estate in Oman, but only in Integrated Tourism Complexes (ITCs). Foreign property owners also automatically acquire residency rights for themselves and their immediate families, by virtue of the property for sale acquisition.