Why Consider Oman for Real Estate Investment in 2025?

While often overshadowed by the UAE or Saudi Arabia, Oman offers an increasingly stable and accessible property market, attractive to expats and Gulf-focused investors. Known for its relaxed pace of life, political neutrality, and breathtaking landscapes, Oman also boasts a property law framework that is evolving to welcome more foreign investment.

Advantages in 2025:

• Foreign ownership allowed in designated zones

• Residency through property available

• Political stability and pro-foreign business stance

• Affordable compared to neighboring Gulf markets

• No income or property tax for individuals

Can Foreigners Buy Property in Oman?

Yes—but with restrictions. Foreigners can purchase real estate in Integrated Tourism Complexes (ITCs) and newly designated foreign ownership zones, but not in most traditional neighborhoods or agricultural zones.

What are ITCs?

These are master-planned communities that allow 100% foreign freehold ownership, along with the right to live, work, and own within Oman. Ownership in these areas grants an automatic residency visa for the buyer and family (renewable).

Examples of ITC projects:

• The Wave (Al Mouj), Muscat

• Muscat Hills

• Saraya Bandar Jissah

• Yiti Sustainable City

• Salalah Beach Residences

Who Should Consider Buying in Oman?

✅ Suitable for:

• GCC-based investors looking for tax-friendly diversification

• Europeans and Asians seeking peaceful lifestyle real estate

• Buyers interested in eco-tourism and long-stay rentals

• Retirees or remote professionals valuing nature, safety, and low noise

❌ Less suitable for:

• Short-term flippers (market is steady, not speculative)

• High-yield-focused Airbnb investors (strict short-term rental rules)

• Buyers who want freehold outside designated zones

Top Cities and Areas for Investment

1. Muscat (Capital)

• Most developed and investor-friendly market

• Home to major ITCs, embassies, schools, and expat zones

• Excellent rental potential in gated communities

Key zones: Al Mouj (The Wave), Qurum, Madinat Al Sultan Qaboos, Shatti Al Qurum

2. Duqm

• Oman’s new economic frontier with free zones and mega-port

• Investment in logistics and hospitality rising

• Long-term potential, but early stage

Ideal for: Commercial investors, long-term hold strategies

3. Salalah

• Coastal city with eco-tourism and retirement appeal

• More affordable than Muscat

• Salalah Beach ITC allows foreign purchases

4. Sohar

• Industrial hub with port development

• Attracting mid-level real estate buyers for workforce housing

• Strong rental yields but lower capital growth

Property Types Available to Foreigners

• Apartments and penthouses in ITCs

• Villas and townhouses (freehold only in ITCs)

• Branded residences (in resorts or waterfront zones)

• Commercial office spaces in special economic zones (Duqm, Sohar)

Average Property Prices in 2025

Rental Yields in 2025

Buying Process in Oman (for Foreigners)

1. Select property in an approved ITC or freehold zone

2. Sign preliminary sales agreement and pay reservation fee

3. Due diligence: Check ownership, developer registration, and resale limits

4. Pay 3% registration fee to Ministry of Housing

5. Title deed issued (with residence visa if applicable)

Important: Freehold ownership outside ITC zones is not allowed unless in very specific commercial cases or via Omani joint venture structures.

Residency via Property Investment

• Automatic residency granted when buying in an ITC

• Includes spouse and children

• Valid as long as the property is held

• Renewable every 2 years (as of 2025 regulations)

• Does not lead to citizenship, but offers long-term stay rights

Legal & Tax Considerations

• No personal income tax

• No capital gains tax

• 3% property transfer fee

• Developers must be ITC-licensed for foreign sales

• No mortgage available for non-residents (in most cases)

• Title must be registered with the Ministry of Housing and Urban Planning

Challenges & Risks

• Limited liquidity compared to Dubai or Abu Dhabi

• ITC areas only make up a small part of the total market

• Long-term appreciation, not fast flipping potential

• Short-term rentals need licensing; not widely adopted

• Mortgage access is limited for foreign buyers without residency or corporate structures

Emerging Trends in 2025

• Eco-friendly projects like Yiti Sustainable City gaining traction

• ITC expansion in coastal and tourism zones

• Infrastructure projects in Duqm and Salalah driving demand

• Slow but steady price growth, especially in Muscat’s luxury zones

• More foreign retirees choosing Oman for its safety and lifestyle

Final Thoughts

Oman offers a calm, conservative, and legally structured entry into Gulf real estate. While the market is less speculative than the UAE, it appeals to buyers looking for a long-term base in a stable and scenic environment. With new ITC projects, clearer foreigner rights, and growing international awareness, Oman is quietly becoming a real estate destination worth serious consideration.

Choose the right ITC, verify legal compliance, and enjoy a peaceful Gulf investment experience.