Oman's property market continues to be one of the Gulf region's quieter success stories, posting strong price growth through the first half of 2026 while regulators fine-tune the residency framework that underpins much of the foreign investment flowing into Muscat's waterfront developments. A fresh round of regulatory clarifications this summer has sharpened the picture of exactly who can buy what, and where.
Price and Market Trends
Oman's residential property prices have risen nearly 19% year-on-year in 2026, with apartments in prime destinations like Al Mouj Muscat posting even sharper gains. The Oman residential real estate market is estimated at USD 5.29 billion in 2026, up from USD 4.96 billion in 2025, with projections putting the market at USD 7.34 billion by 2031 — a compound annual growth rate of roughly 6.74% over that period.
Pricing shows a wide spread depending on segment: the median home price nationally sits around OMR 95,000, while the average is nearly 50% higher at OMR 140,000, pulled upward by luxury properties within Oman's Integrated Tourism Complexes (ITCs). By property type, villas continue to dominate, holding close to 67% of the residential market by share, though apartments are growing fastest, on track for a 7.36% CAGR through 2031, with luxury units expanding even quicker at a projected 7.56% CAGR over the same window.
Demand for luxury waterfront properties remains a standout trend, and turnkey apartments in expat-friendly areas like Al Mouj Muscat and Muscat Hills are moving quickly, typically clearing the market in 45 to 70 days, compared with roughly 90 days for typical resale properties nationwide.
Notable Recent News
1. Oman eased residency rules tied to property purchases in late June. According to the Oman Observer, Times of Oman, and Zawya, the Sultanate amended provisions of the Executive Regulations of the Foreigners Residence Law effective June 21, 2026. The changes introduce enhanced visa and residency privileges for foreign nationals who purchase land designated for construction, or real estate units still completing registration. Eligible buyers can now obtain visas without needing a local sponsor, based on a certificate from the competent authority — and critically, the eligibility now extends to the buyer's spouse, first-degree relatives, and legal representatives of a corporate entity that owns the property.
2. Officials moved quickly to clarify this is a residency change, not an ownership expansion. Following the amendments, Oman's Ministry of Housing and Urban Planning issued a clarification, reported by Siasat and others, stressing that the update relates strictly to residency rights and does not expand the legal scope of foreign property ownership. Foreign nationals can still only own property within designated developments — a list that includes Integrated Tourism Complexes, "future cities" such as Sultan Haitham City, Al Thuraya City, and Al Jabal Al Aali, and integrated residential neighborhoods like Surouh.
3. Foreign investor interest in Muscat keeps building. Coverage from regional property outlets continues to note growing foreign investor interest in Muscat specifically, citing the country's economic and legal stability as a differentiator within the wider Gulf region — a narrative reinforced rather than complicated by the government's move to tighten the clarity (if not the scope) of its foreign ownership rules.
Outlook
Oman's real estate market appears to be threading a careful needle: courting foreign capital through improved residency incentives while keeping actual ownership rights confined to a defined set of approved developments. That combination — strong price growth, fast-moving transactions in expat hotspots, and now easier residency pathways for buyers' families — should keep Muscat's designated zones attractive to foreign investors through the second half of 2026, even as the government signals it has no near-term plans to broaden ownership rights beyond the current ITC and "future city" framework.
Track Oman real estate daily: For up-to-date listings, price trends, and market data on the Oman housing market, visit https://omanhousingmarket.com/.
