The Omani real estate market needs
further laws and regulations that ensure
the sector's participation in the economic
growth of the Sultanate, and the
reduction of abuses, price manipulation
and fraud in buying and selling. It would
be useful for the real estate sector to
have specialized real estate information
centers that could assist investors, real
estate companies and all relevant parties.
Al Mazaya’s report touched on the
mobility seen by the Omani real estate
sector during the current period, and
showed that the sector still faces many
obstacles and challenges that limit its
growth and diversity. Chief among these
is the absence of a central agency that
organizes the real estate sector, and
these statements have been reported by
the Chairman of the Board of Directors
of the Omani Real Estate Society.
Mazaya Monthly Real Estate Report - June 2014
3
The real estate sector sees many real estate
events and projects which have multiple
targets and uses, a matter which requires a
clear vision for the future of the Omani real
estate market and an improvement in the
level of transparency and attractiveness of
investment opportunities through a national
strategy for urbandevelopment that directs the
urban activity in the long term, in such a way
that fits the pace of urban development and
the current and expected population growth.
According to the breadth of the real estate
activity, it has become necessary to provide
real estate data, information and indicators
that reflect the reality of the real estate sector
in all its details and can be used and utilized
by real estate investors and developers. The
added value of Omani real estate activities is
reported to have amounted to SR 610 million
in 2012, with a 4.5-% increase on an annual
basis, while the volume of the foreign direct
investment in the construction sector added
up to SR 414 million, with an annual growth
rate of up to 14% during the same period.
The
sector's
contribution
to
GDP
reached
nearly
6%.
Al Mazaya’s report says that the
investment attractiveness of the Omani
real estate market has been distributed
among investors from the UAE and
Kuwait. According to the data of the Real
Estate Registry at the Ministry of Housing,
the total equity issued to Kuwaiti investors
amounted to 224 bonds, and to UAE
investors, 73 bonds. This is attributed to
the activity of the Omani real estate sector;
the Gulf investments in the real estate
market amount to 38% of total real estate
investments. During the first quarter of
this year, the real estate data have shown
a 94-% rise in trading, amounting to SR
687 million, compared with SR 354 million
in the same period in 2013. Data issued
by the National Center for Statistics and
Information demonstrated that the value
traded for the sales contracts by the end of
the first quarter of this year rose by 84.7%
and SR 289 million, compared with SR
156.5 million in the same period in 2013.
The Omani real estate sector is reported
to have benefited from the strength of the
total economic activity during the past few
years, with properties issued by theMinistry
of Housing reaching 203 in number during
2013. The transaction value amounted
to more than RO 2 billion, with a 34-%
increase compared to its level in 2012. It is
to be taken into account that the majority
of real estate activity is concentrated in
Muscat and North Batinah, due to the
availability of long-term incentives for the
real estate sector which are related to
the high proportion of expatriate labors
and the balance between interest rates,
construction costs and flexibility foreign
ownership laws, which help elevate
the real estate prices permanently.
Al Mazaya’s report says that the applicable
laws of foreign ownership in the Sultanate
have contributed to raising land prices
by 20% in 2013 compared to 2012.
