The Oman commercial real estate market size was valued at USD 6.49 Billion in 2022 and is anticipated to reach USD 13.84 Billion by 2031, expanding at a CAGR of 8.78% during the forecast period, 2023 – 2031. The growth of the market is attributed to the recovery of oil prices.
Some of the key factors predicted to stimulate private sector investment in Oman includes the completion of the new Muscat International Airport, which might improve the country's GDP development. This expansion is expected to boost the country's commercial real estate sector's performance. Despite lower consumer confidence and lower retail sales as a result of poor market circumstances, a substantial amount of retail space is being added to the country's current stock, mostly in the capital.
Due to changing consumer tastes, the country's retail environment is progressively transitioning away from stand-alone retail establishments and toward bigger format malls. Corporate demand, leisure, meetings, conferences, and the Oman Convention and Exhibition Centre (OCEC), which opened in 2016 to attract a wide spectrum of business visitors from around the world, are some of the key drivers driving hotel industry growth in Oman. In 2018, the total number of hotels in Oman was 412.
In 2017, the Capital Market Authority (CMA) of Oman published the legal framework for the establishment and trading of real estate investment trusts (REITs) in order to promote investment in the Oman real estate sector. By enabling Omani citizens, including ex-pats, to acquire a portion of a real estate development on the Muscat Securities Market, the rule provides a wonderful opportunity for them.
The hospitality industry in Oman has been steadily growing. The hospitality industry is experiencing an uptick in building activity, with roughly 72 new hotels set to open in 2019. By the end of 2019, 55 of these projects are projected to be finished, potentially adding 4,763 rooms to the country's total hotel supply. The increase in hotel building activity across the nation is expected to continue during the projected period, with additional hotel projects set to open, boosting demand in the hospitality industry even more.
Oman's industrial sector has also maintained a steady growth rate, thanks to ongoing investments aimed at strengthening the country's manufacturing base. The manufacturing sector's contribution to Oman's GDP grew to OMR 2,914.40 million in 2018 from OMR 2,709.31 million in 2017.
Oman also offers nine "industrial estates" with inexpensive leasing and energy costs, reduced customs charges, and five-year tax breaks for businesses. Knowledge Oasis Muscat, one of Oman's industrial parks, enables technology firms to be owned entirely by foreigners. The planned Khazaen Economic City on the southern highway reflects Oman's future industrial and logistical strategy, connecting hubs with northern ports and airports with similar zones in Duqm and Salalah. With additional development possibilities for companies, this expansion in the industrial sector is expected to enhance demand for commercial real estate in the country.
Commercial Real Estate Market Trends, Drivers, Restraints, and Opportunities
- Rising recovery of oil prices is estimated to boost the market growth during the forecast period.
- Production of natural gas production at the Khazzan gas field is projected to fuel the market expansion in the coming years.
Scope of Commercial Real Estate Market Report
The report on the Oman commercial real estate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Oman Commercial Real Estate Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Offices, Retail, Industrial, Logistics, Multi-family, and Hospitality)
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Regional Scope
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Muscat, Sohar, and Dhofar
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Majan Development, Al Taher Group, Wujha, Al Raid, and Shanfari Group
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Oman Commercial Real Estate Market Segment Insights
In terms of type, the Oman commercial real estate market is segmented into offices, retail, industrial, logistics, multi-family, and hospitality. The industrial segment is expected to account for a key share of the market in the coming years due to industrial contributions to GDP are projected to gain from projects established in the country's free-trade zones, thanks to increased government backing for new foreign direct investment (FDI) initiatives and ongoing infrastructure investment. On the other hand, the retail segment is anticipated to expand at a rapid pace during the forecast period owing to changing consumer preferences.
Muscat is expected to dominate the market
On the basis of cities, the Oman commercial real estate market is categorized as Muscat, Sohar, and Dhofar. The market of Muscat is anticipated to expand at an impressive CAGR during the forecast period. The regional market growth can be attributed to boosting investment in the real estate market.
Segments
The Oman commercial real estate market has been segmented on the basis of
Type
- Offices
- Retail
- Industrial
- Logistics
- Multi-family
- Hospitality
Cities
Key Players
- Majan Development
- Al Taher Group
- Wujha
- Al Raid
- Shanfari Group
Competitive Landscape
Key players competing in Oman commercial real estate market include Majan Development, Al Taher Group, Wujha, Al Raid, and Shanfari Group.
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