Oman’s residential leasing market is experiencing a positive trend, with occupancy rates increasing in well-managed assets, according to Ihsan Kharouf, Head of Savills Oman. Despite a decline in expatriate numbers, tenants are transitioning from quick-fix accommodations to longer-term homes. The recent Oman Real Estate Expo showcased strong attendance and market confidence for the upcoming period, signaling positive news for the real estate market. The office market in Oman is also showing positive momentum, with Savills recording the best commercial leasing numbers in a decade.
In terms of the retail sector, Kharouf categorizes it into three segments – prime retail, secondary retail, and localised/community/destination retail. Prime retail is performing strongly with waiting lists, while secondary retail tenants have a strong negotiating position due to oversupply. Localised, community, or destination retail is performing well, with key money being exchanged to accommodate some tenants. Kharouf notes that the launch of the Muscat Structure Plan and the announcement of numerous new projects in major cities will have a significant impact on the real estate landscape.
The real estate exhibition in Oman for 2024 was the best in terms of attendance, exhibitors, and scale that Kharouf has ever seen. These exhibitions serve as a barometer for the market, reflecting current conditions and indicating market confidence for the future. The positive momentum in the office market continues from 2023, with a delicate balance between supply and demand. Owners are leveraging active market intelligence in pricing to ensure maximum occupancy, according to Kharouf.
Kharouf emphasizes that market confidence can be self-fulfilling and the upcoming period in the Omani market looks dynamic with the launch of the Muscat Structure Plan and new projects in major cities. The real estate landscape is expected to see significant changes as a result of these developments, presenting opportunities for investors and stakeholders in the industry. It is clear that the Omani market is entering a period of growth and transformation, with key players like Savills playing a crucial role in shaping the future of the real estate sector.
Overall, Oman’s residential leasing market is buoyant, with positive trends in occupancy rates and market confidence. The office market is also showing positive momentum, reflecting a delicate balance between supply and demand. The retail sector is categorized into prime, secondary, and localised/community/destination retail, each performing differently in response to market conditions. The launch of the Muscat Structure Plan and new projects in major cities will have a significant impact on the real estate landscape, shaping the future of the industry in Oman. Investors and stakeholders should keep an eye on these developments for potential opportunities in the growing Omani market.
