Oman property market cools in February as deals drop 8.3%

21/04/2025 01:41 AST

Oman's property market saw a dip in activity in February, with total real estate transactions falling 8.3 percent year on year to 362.3 million Omani rials ($940.7 million), official data showed.

According to figures from the National Centre for Statistics and Information, this compares to 394.9 million rials recorded during the same period in 2024, Oman News Agency reported.

The moderation in activity comes amid tighter global financial conditions, shifting investor sentiment, and a gradual normalization of real estate markets across the Gulf following the post-pandemic surge in demand and pricing.

Despite the broader slowdown in Oman's real estate market, revenue from legal transaction fees rose 5.9 percent to 12.3 million rials, up from 11.6 million rials a year earlier.

The value of sale contracts dropped 18.3 percent to 160.3 million rials, while the number of contracts declined 3.2 percent to 11,177, down from 11,543 in February 2024.

Meanwhile, mortgage transactions edged up 1.8 percent to 200.1 million rials across 3,416 contracts, compared to 196.5 million rials across 2,989 contracts a year earlier.

Exchange contracts dropped to 266, valued at 1.9 million rials, down from 299 contracts worth 2.2 million rials in the same period last year.

In Oman's real estate market, swap contracts-also known as real estate exchange agreements-are arrangements that enable two parties to trade property ownership with engaging in cash transaction.

The number of property titles issued rose slightly by 0.8 percent to 39,704, while those issued to Gulf Cooperation Council citizens increased by 7.1 percent to 227, compared to 212 in February 2024.

The cooling follows a strong 2024, when Oman's real estate sector surged 29.5 percent, with total transactions reaching 3.3 billion rials, driven by foreign investment and government-led reforms.

During the first nine months of that year, the sector contributed 820.7 million rials to gross domestic product, according to the Ministry of Housing and Urban Planning, as reported by Oman News Agency in February.

The sector's performance reflects broader regional momentum as Gulf countries press ahead with economic diversification strategies.

In Saudi Arabia, real estate prices rose 3.6 percent year-on-year in the fourth quarter of 2024. Dubai saw a 30 percent jump in residential sales to $32.4 billion during the same period, while Qatar recorded 3,548 real estate transactions in 2024 totaling $3.97 billion.

To support the sector, Oman has eased foreign ownership rules and introduced tax incentives aimed at attracting investment and boosting development across the sultanate.