Rents dropping significantly across Oman

Drop in property trade

While the COO’s optimistic statements may be welcomed by property builders across the Sultanate, it clashes with the ‘Oman Property Market Review’ report, which – in accordance to a report released by the Ministry of Housing – states that the total value of property traded (rentals and buying) in 2017 dropped to RO2.6 billion, which is a staggering 61 per cent drop from its values in 2016.

The demand, according to the ministry, is low due to the pressure on housing budgets resulting from taxation.

“When you have a problem, you have to admit it first. And finally, it has been admitted. So, now we will have come up with solutions to tackle the issues,” says Nauf.

“As an Omani, I see my country as a land of opportunities. I see what is happening now – the situation is hard and we are in the middle of a crisis – however, the opportunities in Oman are amazing and are ever-increasing. Now people are more aware and knowledgeable.

“Tibiaan Properties is doing rather well in terms of sale, returns, investment and revenue. We have managed to have a growth during this period (2017 and first quarter of 2018).

“To be honest, yes, 2017 was a tough year. We have seen some indicators for a good growth, even though it is a slight increase.

“The scene is like this: People do have money; maybe it’s not in a surplus, but there is still a substantial amount being put into properties. I’m not saying all of them have, but the one per cent of the community that have the money want to invest it,” she explains, before telling us that there has been a strong increase in the number of foreign investors looking to invest in the Sultanate.

“A lot of people are also coming from outside. For instance, we have Qataris and Kuwaitis coming in to invest here. And it’s not just in Tibiaan but in many other industries too.

“The economy in Qatar, for instance, is really great and they’re trying to expand to other markets. They like the country and the people, and they trust us.”

In 2017, more than 33,000 GCC citizens owned lands in the Sultanate for various purposes.

Oman’s geographical location – which puts it bang in the middle of the trade hub that connects the GCC to the Eastern hemisphere – also adds to the allure of the country.

“Logistics and tourism are the two strong pillars that were in focus in the Tanfeedh, and is what sets Oman apart from a lot of other countries in the region,” she adds.

And as Oman’s GDP growth is set to rise to 5.2 per cent next year, aided by the introduction of natural gas production at the Khazzan gas field and the opening of the new airport in Muscat, we can only expect the real estate market to stabilise over the forthcoming months.

But for those who are looking to rent out flats, there’s no better time to do so than now.