Oman oil price recovery presents real estate market opportunities
More opportunities are arising for buyers and tenants in Oman real estate, finds Cavendish Maxwell report
Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East, has released its Oman Property Market Report for 2019-2020 outlining the “gradual recovery” of the sultanate’s real estate market as oil prices stabilise.
The report found that Oman’s real estate market recorded a gradual recovery providing more opportunities for buyers and tenants, which was supported by oil prices stabilising until 2019.
It added that after recording a steep drop to $6.7bn (OMR 2.6bn) in 2017 from $17.1bn (OMR 6.6bn) in 2016, traded value of property in Oman improved slightly to $7bn (OMR 2.7bn) in 2019.
Commenting on the report, Cavendish Maxwell’s associate partner, strategic consulting and research, Aditi Gouri, said: “Positive indications for the real estate sector, such as high growth in traded value of properties, emerged in 2019 despite Omanisation efforts impacting residential real estate sector demand.”
She added: “However, since the beginning of 2020, Oman’s internal and external environment has changed rapidly. Whilst political stability has prevailed in the Sultanate after the change in power, the government is now increasing focus on the areas of budget deficits, debt and unemployment.
“At the same time, they will need to navigate the economic environment in the months ahead, which will be governed by the constantly evolving global situation and oil price movements.”