Real Estate

Market pressures have continued to weigh on Oman’s real estate sector since oil prices fell from their historic highs, driving the sultanate to adjust to lower revenue by trimming budgets and paring back some investment. Growth in public payrolls and jobs – a key driver of real estate demand – slowed in 2016 as the government reduced spending by 7.5% to tackle a fiscal deficit surpassing 20% of GDP; weaker economic conditions have likewise constrained job creation in the private sector. This deceleration has put pressure on both demand and property prices. While residential rents in Muscat, normally a sector bellwether, were 20-25% below their 2014 peak in September 2017, there are hopes they are beginning to stabilise.