Oman’s Property Index Soars 10.8% in Q2: What This Means for Real Estate Investors and Businesses
MUSCAT: According to recent data from the National Centre for Statistics and Information (NCSI), Oman’s real estate price index experienced a notable increase of 10.8 percent in the second quarter of 2025 compared to the same period last year.
The total value of real estate transactions reached approximately RO 259.6 million during this quarter, which included RO 172.3 million in the residential sector and RO 87.3 million in commercial properties.
The report highlights growth in both the residential and commercial segments, driven by robust demand, active development projects, and rising investor confidence aligned with the objectives of Oman Vision 2040.
The residential market was the leading contributor to this growth, with the residential index rising 11.8 percent year-on-year. Notable increases were seen in residential land values, which rose 11.3 percent; apartments appreciated by 9.7 percent; and villas saw the most significant surge at 17.6 percent. Other housing types increased by 1.7 percent.
Muscat emerged as the governorate with the highest growth, with residential land prices soaring 38.1 percent compared to the same quarter last year. Other regions also reported price increases, including Al Dakhiliyah Governorate at 6 percent, Al Batinah South Governorate at 3.5 percent, Musandam Governorate at 2.3 percent, and Al Sharqiyah South Governorate at 0.3 percent. The NCSI attributed Muscat’s robust performance to ongoing urban development, population influx into the capital, and heightened interest in mixed-use projects.
Conversely, some governorates experienced declines in residential land prices. Al Buraimi Governorate noted the steepest drop at 37.7 percent, followed by Al Wusta Governorate at 24.7 percent, Al Dhahirah Governorate at 24.2 percent, Dhofar Governorate at 6.3 percent, Al Batinah North Governorate at 3.1 percent, and Al Sharqiyah North Governorate at 0.6 percent.
On the commercial front, the index rose 8.8 percent year-on-year, aided by a 7.3 percent increase in commercial land prices. Retail property values grew by 4.1 percent, while industrial land prices surged by 16.1 percent, reflecting positive developments in the industrial and logistics sectors.
Special Analysis by Omanet | Navigate Oman’s Market
The 10.8% rise in Oman’s real estate price index signals a robust recovery and heightened investor confidence, primarily driven by residential demand and strategic projects aligned with Oman Vision 2040. This growth presents opportunities for businesses in development and investment sectors, particularly in Muscat where residential land prices have soared by 38.1%. However, smart investors should be cautious, as disparities in regional performance may expose risks in less favorable markets, such as Al Buraimi and Al Wusta, where prices have sharply declined.
