In H1 2025, Oman’s real estate market showed steady resilience despite global headwinds, supported by Vision 2040 reforms, infrastructure investment, and diversification into logistics, tourism, and manufacturing.
Muscat led activity with demand for Grade A offices, retail, and mid-income housing, while Duqm and Sohar attracted industrial and logistics tenants, and Salalah benefited from tourism projects. The office market remained tenant-favourable but saw rising absorption in premium clusters like Al Mouj and Madinat Al Irfan, with growing demand for ESG-certified buildings.
Retail stabilised around destination malls, residential demand was steady for mid-income homes with slight rent increases, and industrial/logistics demand stayed robust in Sohar and Duqm.
Hospitality strengthened with higher occupancy, ADR growth, and eco-tourism momentum. Investment yields remained attractive across sectors (8–11%), making Oman a stable, long-term growth market.
