Despite the ongoing Iran war, Oman’s property market continued to demonstrate resilience during the second quarter of 2026, with transaction values rising and foreign investment remaining on an upward trajectory irrespective of the geopolitical volatility.
According to the “Oman Property Market Q2 2026 Report” prepared by global real estate services provider Savills, the total value of property transactions in the Sultanate reached RO1.43 billion by the end of June 2026, representing a 5.4% increase compared with the same period in 2025.
“The number of property contracts also increased by 12.2%, while mortgage activity remained broadly stable, declining marginally by 0.3%,” Savills said.
Talking about the uptick in foreign direct investment (FDI) in Oman’s real estate sector, the tally reached RO602.5 million by the end of Q1 2026, up 1.2% year-on-year, reflecting sustained investor confidence in the Gulf nation’s long-term real estate market.
The report, while giving a brief snapshot of Oman’s modest economic slowdown in Q1, found the Sultanate’s medium-term outlook on the positive territory.
“Oxford Economics forecasts GDP growth of 6.3% in 2027 and 7.1% in 2028, supported by higher oil production, resilient non-oil activity, continued government investment, and the country’s business-friendly policy environment,” Savills remarked.
Ihsan Kharouf, Head of Oman at Savills Middle East, commented, “Despite ongoing regional uncertainty, Oman’s property market continues to demonstrate resilience, supported by improving investor confidence, a stable economic environment, and continued government investment. The increase in transaction values and sustained foreign investment highlight the market’s long-term appeal, while ongoing infrastructure development and economic diversification continue to strengthen the country’s investment proposition.”
“The market’s medium-term outlook remains positive, with demand expected to be supported by Oman’s strategic location, expanding logistics sector, and continued policy initiatives aimed at attracting investment and sustainable economic growth,” the official added further.
“Within the residential market, established communities continued to demonstrate differing performance across rental segments. Al Mouj maintained its position as Oman’s premium residential destination, with average monthly apartment rents reaching RO664, while remaining the market leader in the four-bedroom villa segment with average rents of RO1,700,” Kharouf said.
The Sultanate’s established residential areas also recorded notable rental growth during the second quarter, with apartment rents in Qurum increasing by 16% and four-bedroom villa rents in Madinat Sultan Qaboos rising by 22%. As per Kharouf, the trend reflected sustained demand for well-managed accommodation alongside limited supply.
“Muscat’s office market also remained broadly stable during Q2 2026. Rental rates across the CBD and Qurum were unchanged, while Ghubrah and Azaiba recorded modest rental growth of 4%, reflecting continued occupier demand across established office locations,” Savills said.
In the coming days, Savills expects Oman to remain well positioned to benefit from evolving regional trade patterns. With ports in Salalah, Duqm and Sohar strategically located outside the Strait of Hormuz, the Gulf country continues to strengthen its role as a regional logistics hub, supporting increased demand for warehousing, logistics and trucking services while reinforcing the long-term outlook for the commercial property sector.