Rents and prices in Oman’s residential property market are expected to decline further this year as the market continues to be oversupplied with apartment blocks, according to a new report released by real estate consultancy and chartered surveying firm Cavendish Maxwell.
Its new report indicated that Muscat’s residential market continues to be oversupplied with apartment blocks, despite a gap in the market for high-quality villas and townhouses.
The Oman Market Report for 2018 also said that the country’s office sector saw demand for business centres increase in 2018 as a result of firms downsizing and seeking fitted office premises at lower costs.
Demand for Grade A stock is expected to remain stable and developers should benefit from current market conditions and lower costs to build.
Looking ahead to 2019, he said Oman continues to offer significant investment opportunities, thanks to its growing non-oil economy, particularly in the tourism and industrial sectors, as well as in integrated tourism complex (ITC) developments.
The report said that despite weaker consumer sentiment and sluggish market conditions, the retail sector witnessed developers adding more space to the existing stock in Oman, particularly in Muscat.
In 2018, several new malls entered the retail market, including Landmark Group’s Oasis Malls in Sohar and Salalah. Al Araimi Boulevard, Mall of Oman and Mall of Muscat will all add more retail space as they near completion.
New regulations and incentives from Oman’s Ministry of Tourism have helped boost Oman’s hospitality sector, the report added.
Cavendish Maxwell also noted that there are currently 72 hotels under construction in Oman, amounting to a total of 6,604 rooms. By the end of 2019, 55 of those developments are expected to be completed, adding 4,763 rooms to the sultanate’s hotel supply.
Source: Arabian Business