Resilience in Oman’s Real Estate Sector: What Investors Need to Know Amid Economic Challenges
MUSCAT: The real estate sector in Oman is demonstrating remarkable resilience and growth despite facing economic challenges. This insight comes from the recently published Real Estate Sector Report 2024 by Tibiaan Properties, a prominent real estate firm managing an extensive portfolio that includes apartments, villas, condos, land, and commercial properties.
The report outlines significant developments and trends impacting the real estate industry. It acknowledges ongoing challenges, such as fluctuating foot traffic and the effects of geopolitical tensions on supply chains. Nevertheless, it emphasizes the sector’s robustness, noting that many businesses have adapted by increasing their inventories and updating operational strategies to navigate these disruptions.
A notable finding is the economic revitalization taking place in Oman in 2023, propelled by government initiatives and proactive measures. Despite a minor decline in oil production, overall economic activity has increased, particularly in development projects and non-hydrocarbon sectors. The rise in expatriate employment across various industries further supports this trend, highlighting the country’s economic diversification.
The report also underscores the launch of 11 major projects under the Public-Private Partnership (PPP) program. These initiatives span sectors including transport and logistics, health, education, agriculture and fisheries, construction, and information technology. They are poised to enhance long-term economic stability and attract both local and international investment.
Younis al Harrasi, CEO of Tibiaan Properties, stated, “The successful realization of these projects depends on a comprehensive and aggressive marketing and promotion campaign, both in the short and long term. Emphasizing these opportunities is essential to attract investment and engagement from local and international stakeholders.”
The Omani real estate market is set for further growth with major projects like the Integrated Residential Neighbourhood Project (Souroh) and the Sultan Haitham City project. These initiatives represent substantial investments, offering housing solutions and fostering infrastructure development across various regions.
Additionally, the government’s allocation of approximately RO 900 million for developmental projects in 2024 highlights its commitment to promoting growth. This budget encompasses provisions for governorate projects and increased funding for key sectors, reflecting a strategic focus on sustainable development.
In summary, the real estate sector in Oman appears well-positioned for growth and resilience amid global economic pressures. The report indicates positive trends, including a slight rise in the Consumer Price Index (CPI) in 2023. It emphasizes the importance of strategic marketing, human resource development, and comprehensive promotional efforts to fully leverage ongoing initiatives and attract investment opportunities.
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The resilience of Oman’s real estate sector, despite economic challenges, underscores a strategic opportunity for businesses to capitalize on new developmental projects, particularly those under the Public-Private Partnership (PPP) program. Smart investors and entrepreneurs should focus on sectors like housing and infrastructure, as government initiatives and increased expatriate employment signal a diversifying economy ripe for investment. However, the need for aggressive marketing and stakeholder engagement cannot be overstated, as these factors will be crucial in attracting both local and international investments moving forward.
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