Why Oman Is One of the Middle East’s Strongest Real Estate Markets

The Middle East is in the midst of an impressive, decades-long real estate boom, with the regional market making huge gains in recent years for a variety of reasons. These include a shift in focus to non-oil sources of revenue (such as the development of the tourism and business sectors), expansive development projects such as Saudi Vision 2030 and Egypt’s New Administrative Capital, as well as immigration policies (such as golden visas) that are attracting high-net-worth expats to cities like Dubai and Abu Dhabi. In addition, a region-wide shift from rural to urban living has resulted in mass migration to large cities, which has had a compounding effect on housing demand and prices.

However, the growth of the real estate sector in the Middle East has not been limited to countries that are frequently seen in the media, such as Saudi Arabia, Egypt, and the United Arab Emirates. The entire region is seeing rapid growth, and countries that often fly under the radar among foreign investors and businesspeople are also providing opportunities for growth and profit. One such country is Oman, which has quietly developed a reputation as a tourist-friendly, politically stable destination. As a result, the country’s real estate market has seen huge growth over the past few years and is forecast to continue to expand in the near future. The following factors are all contributing to the growth of this sector in Oman.

Tourism Is Booming

Tourism in Oman is growing rapidly as more and more people discover the charm, culture, and beauty of the country. The beaches, in particular, offer an appealing getaway for travelers, who enjoy the juxtaposition of traditional fishing towns with five-star resorts and amenities. Between the development of resorts and other accommodations (including $3 billion worth of investment over the next five years) and an increase in the number of tourists who purchase vacation homes or become expats after visiting the country, this bodes well for the market. Even better is the expected economic boost from the country’s Vision 2040, which aims to increase tourism by 11.7 million visitors within the next 15 years, through a $51 billion investment.

A Growing Population

The domestic population in Oman is growing quickly, which is driving expansive growth in the country’s urban areas. Young adults are buying their first homes as they begin to have families, and the latest generation of professionals is also beginning to look toward real estate as a vehicle for investment. The result has been an impressive $89 billion in home sales in the first half of 2025.

Relatively Low Interest Rates

Interest rates generally affect real estate sales, as they directly influence mortgage costs, which determine how affordable homes are for buyers. The fact that interest rates have remained relatively low in Oman has led to an environment that is conducive to home sales, development projects, and the strength of the real estate market in general.

New Regulations Are Making Foreign Investment Easier

The government of Oman has taken a number of steps to encourage real estate investment and attract expatriates and retirees. This includes non-citizen land ownership rights in some areas, no personal income tax, free zones with no property taxes, and even the opportunity to gain lifetime residency with certain property purchases. All of these changes have made the country more attractive to international buyers, increasing demand for real estate, and driving prices up.

Stable Political Environment

Oman has benefitted from a reputation as perhaps the most politically stable nation in the Middle East. Due to a population that is known for its warmth and hospitality, there is positive sentiment surrounding Oman. This positively impacts all areas of investment in the country, including the real estate sector.

Expats Are Flocking to the Country

As a result of the government policy changes discussed above, as well as Oman’s reputation for safety and political stability, expats have begun to flock there in pursuit of a high quality of living that includes a friendly local population; a rich and welcoming culture; great weather; and a beach lifestyle that provides easy coastal access. As more and more expats and retirees look to Oman for either a vacation home or a full-time residence, the influx of residents with the means and desire to purchase luxury homes will continue to fuel demand and support the sector.