Oman's Real Estate and Tourism Sectors Poised for Significant Growth, But Housing Shortfall Looms
A new report by leading real estate and advisory consultant, Cavendish Maxwell, reveals that the Sultanate of Oman is set to deliver 62,800 new residential real estate units by 2030, with 5,500 coming to market this year. This is in line with Oman Vision 2040, which aims for non-oil sectors to contribute 90% of the economy. The country's residential inventory grew by 3.6% in 2024, reaching 1.1 million units. However, rapid population growth, projected to reach 7.7 million by 2040 from the current 5.3 million, could lead to a significant shortfall in residential property supply, with Cavendish Maxwell predicting a need for another 340,000 new homes to sustain a 90% occupancy rate.
Oman's tourism sector is also booming, with 5,800 new hotel rooms planned by 2030 across 35 new hotels and resorts, boosting current inventory by approximately 25%. In 2024, Oman's airports handled 14.5 million passengers, and hotel guests surpassed pre-pandemic levels, reaching 2.15 million. Integrated Tourism Complexes (ITCs) are highlighted as key to future growth, offering freehold property ownership to non-Omani nationals at competitive prices and rental yields. Branded residences are also making their mark, catering to high-end investors.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, emphasized the economic transformation and the importance of stimulating investment in the real estate sector to ensure long-term housing market resilience and support national development. He also noted the positive but stable outlook for the tourism sector, backed by government initiatives and growing investor confidence.
