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commercial and investment plots of lands.
In the Omani real estate market, real estate
transactions by Gulf investors fell by
more than 25% due to a state of saturation
in the market. The report highlighted
the Omani government’s intervention to
boost investments and limit the negative
impact of the unjustifiable rise in land
prices owing to the growing influence
of real estate brokers’ practices. Such
unstable conditions in the Omani market
caused a large number of investors and
buyers to shy away from the market.
Rather, they seek to purchase ready-made
flats and villas, a tendency which typically
led property prices to soar by 20%-
40% in different parts of the Sultanate,
following the growing urban expansion
trend witnessed nationwide. Furthermore,
the report also referred to the factors
that have negatively affected the supply-
demand mechanism in the country.
On the whole, Gulf realty markets
face neither market nor
funding
illiquidity, but rather, is still affected
by the implications of the post-
global financial crisis era when the
property sector has witnessed a boom
since early 2012. Realty markets
recorded variable rises in price that
was justifiable only at times, driven by
cycles of high demand and low supply.
Conclusion
The report stated that fallingoil returns and
the decline in spending have significantly
contributed to the fluctuations witnessed
by Gulf property markets, noting that the
price slides recorded in some real estate
sectors by the end of the year are not to
be viewed as negative forecasts of the
coming period. The report stressed that
it is just as true that not every rise would
necessarily lead to demand-pull inflation,
as the situation differs fromone location to
another and from one country to another.
Mazaya Monthly Real Estate Report -
Week 3 - December 2016