According to statistics published by Oman’s National Centre for Statistics and Information, the real estate price index in the Sultanate increased 17.3% year-on-year in the third quarter of 2025, compared to the same quarter in 2024, with the commercial and residential real estate price indexes going up by 14.6% and 18.7%, respectively, on a year-on-year basis.
Commercial land prices increased 19%, whereas the industrial counterpart witnessed land prices going up by 5.5%. Prices of retail shops, however, decreased 8.5%. Residential land prices increased 19.6%, followed by apartment (22.4% hike) and villa (16.5% hike) segments, while prices of other housing types decreased 0.5%.
The rise in Oman’s real estate price index comes amid broader momentum across property markets in the broader Gulf region, where residential activity remained resilient in Q3 2025. Higher demand in major cities across this part of the world, supported by population growth and ongoing infrastructure investment, helped underpin price gains, even as some markets faced tighter financing conditions.
Muscat saw the biggest increase in residential land prices (48.3% compared to the third quarter of 2024), followed by Musandam (29.7%), Dakhliyah (12.3%), North Batinah (8.1%), South Batinah (8.7%), and Dhofar (4%). Residential land prices decreased in Dhahirah (-25.8%), Buraimi (-24.6%), Al Wusta (-13.3%), and North Sharqiyah (-4%).
The hospitality sector, on the other hand, accelerated faster than real estate, with 18% revenue growth reaching record levels. Three to five-star hotels particularly drive expansion, capturing growing international visitor flows. The sector, along with the property segment, now represents a cornerstone of the Sultanate’s non-oil economic growth.
Infrastructure development fuels this momentum with over 9,600 new hotel rooms planned by 2030. Room inventory sets course to surpass 40,000 rooms by 2027, positioning the Gulf country as a regional tourism powerhouse. Guest volumes at premium hotels increased approximately 10% year-over-year through October 2025.
Muscat right now leads regional rankings as Asia’s third most attractive real estate destination. Average property prices in Oman’s capital currently range from 80,000 to 200,000 Omani Riyals in upscale areas like Bousher and Al Ghubrah. Luxury accommodation and short-term rental markets are increasingly attracting the flow of institutional capital. To sweeten things further, Oman has also introduced “Golden Visa” programmes, tied to property investment, which is further stimulating residency demand from high-net-worth individuals in the Sultanate.