Real Estate Deals Increase by 1.3%: Implications for Investors and Entrepreneurs in Oman
Muscat: The Sultanate of Oman has witnessed a 1.3% increase in the value of traded property, reaching RO 1,237.0 million by the end of May 2024, up from RO 1,220.6 million during the same period in 2023, as reported by the National Centre for Statistics and Information (NCSI).
Preliminary statistics from the NCSI indicate that fees from legal transactions totaled RO 27.2 million by late May 2024, reflecting a 5.7% decline compared to the previous year.
Additionally, the value of sale contracts decreased by 2.3%, amounting to RO 457.2 million. However, the number of sale contracts rose by 0.7%, increasing to 28,023 from 27,823 in the same timeframe in 2023.
On the other hand, the value of mortgage contracts increased by 3.5%, reaching RO 774.5 million compared to RO 748.4 million in 2023. Conversely, the number of mortgage contracts fell by 15%, dropping to 8,596 from 10,110 a year earlier.
The value of barter contracts saw a significant 24.5% increase, reaching RO 5.2 million up from RO 4.2 million in May 2023. Despite this rise in value, the number of barter contracts fell by 6%, totaling 583 compared to 620 for the same period last year.
Furthermore, the number of properties issued by the end of May 2024 decreased by 5.7%, totaling 94,194. In contrast, the issuance of properties to citizens of GCC countries increased by 2.3%, reaching 528 compared to 516 in May 2023.
Special Analysis by Omanet | Navigate Oman’s Market
The 1.3% increase in property trade value signals a cautiously optimistic market in Oman, despite a decline in sale contracts and a significant drop in mortgage numbers, indicating potential risks for real estate investors. Smart investors should consider diversifying portfolios and taking advantage of the rising barter contracts, highlighting an opportunity to engage in alternative transaction methods that could mitigate risks associated with traditional financing.
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