Oman's real estate deals decline to $4bn

Oman's real estate deals decline to $4bn
Real estate transactions have declined in Oman.
Published: 30 July 2018 - 12:46 a.m.
By: Oscar Rousseau

Property transactions for the first half of 2018 remained flat in Oman, despite a rise in stamp duty collection fees and a drop in new mortgage contracts. 

The value of real estate transactions in Oman declined marginally by 0.4% between the first six months of this year compared with the same period in 2017, the National Centre for Statistics and Information (NCSI) said.

Property sales hit $3.67bn (OMR1.413bn) in H1 2018, compared to $3.61bn (OMR1.419bn) in H1 2017. Oman's state-run news agency said activity in the real estate market had been "dull" so far this year.

The total number of both sales and mortgage contracts also declined, falling by 1.1% and 18.3% respectively.

However, Oman was able to collect $118.3m (OMR45.5m) in stamp duty during the same period, a value increase of 10.1% year-on-year.

Omani authorities allocated a total of 116,039 land plots in the first six months of 2018, compared with 115,864 allocated for the same period a year earlier. Only 812 land plots – or 0.6% – of the plots were allocated to citizens from the GCC during the period, NCSI said.

While statistical data may point to a marginal decline in Oman's property market, construction in the country is expected to grow faster than other nations in the Gulf, according to a separate report by BMI Research, a unit of Fitch Ratings. 

Rising prices for oil and gas will support the sultanate's economy, which in turn will generate growth for other areas of the economy, such as construction. While infrastructure, energy, and transport will see the bulk of construction activity in Oman, megaprojects such as the 51km2  Khazaen Economic City will see new residential units delivered.

 

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