Oman’s Residential Rental Market Thrives Amidst Rising Occupancy Rates
The residential leasing market in Oman is experiencing a robust upswing, with notable increases in occupancy levels across well-maintained properties, as reported by industry experts.
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Ihsan Kharouf, Head of Savills Oman, explained that despite the drop in expat numbers earlier, the market has been buoyed by last year’s significant population increase, leading many to move from temporary housing to more permanent and appropriate living situations.
His comments were made on the sidelines of the recently concluded Oman Real Estate Expo held at the Oman Convention and Exhibition Centre. Kharouf praised the 2024 expo as the most impressive he’s witnessed in terms of attendance and the scale of participants.
Highlighting the continuous progress in the commercial leasing sector, Kharouf remarked that 2023’s momentum is being carried over into this year, with Savills posting the best commercial leasing figures in a decade. He emphasized the nuanced balance between supply and demand, with property owners using active market intelligence to strategically price properties, ensuring high occupancy rates.
Kharouf also detailed the dynamics within the retail sector, which is segmented into three main areas: prime, secondary, and community or destination retail. Prime retail locations are performing exceptionally well, often having waiting lists, whereas secondary retail spots see tenants holding a stronger bargaining power due to an oversupply. Well-managed community or destination retail spaces are also performing well, attracting significant tenant interest.
The introduction of the Muscat Structure Plan and several new projects across Muscat and other major cities mark the beginning of a dynamic phase for Oman’s real estate market, promising significant transformations in the landscape, concluded Kharouf.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
