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Mazaya Monthly Real Estate Report -
Week 3 - May 2016
GCC Investment in Oman
When it comes to foreign investment,
it is a well-known fact that GCC
nationals account for the largest
ratio of real estate ventures, into the
Sultanate. This has typically included
investments directed at undeveloped
land and tourism projects. Al Mazaya’s
Report points out that demand from
GCC investors has seen a marked
increase, in these areas, over the
past few years – a direct result of the
Sultanate's economic and political
stability,
continued
government
spending, and uninterrupted urban
growth in major cities. Competitive
land prices and market liquidity are
also key factors in motivating GCC
investors to look towards Oman.
It isworthmentioning that whileOman is
not a significant oil producer, compared
to most of its GCC neighbours, the
Omani real estate market is not immune
to the effects of declining energy
prices and revenues. There is also a
tendency in the Omani government
towards
rationalising
continued
spending on development projects;
however, a deficit in the government
budget, for the current year, was
recently announced, with 84 per cent
of total revenues from oil accounting
for spending on development and
service projects. That said, Al Mazaya
Report is confident that the Omani
real estate market remains among
the best investment opportunities
in respect of real estate units for
middle-income nationals. A rise in the
demand for such properties, due to an
increase in the Sultanate’s population,
is largely being driven by the young
adult and first-time buyers’ category.
Residential Real Estate Sector – Oman
In terms of the residential sector, Al
Mazaya’s Report notes a decrease in the
demand for houses, a drop in domestic
purchasing power and a decline in
the number of title deeds granted to
GCC investors over the past year.