Oman is poised for a real estate and hospitality boom, with nearly 62,800 new residential units and 5,800 hotel rooms expected by 2030, according to insights from leading advisory firm Cavendish Maxwell. Published during Oman Design and Build Week, the latest Oman Real Estate Market Performance Report highlights the country’s ongoing transformation in line with Vision 2040, a strategic plan to diversify the economy away from oil and foster sustainable development.
In 2024 alone, Oman delivered 38,400 new homes, increasing its residential supply by 3.6% to an estimated 1.1 million units. The majority of these are located in Muscat, followed by Al Batinah North and South, and Dhofar. An additional 5,500 homes are scheduled to come to market this year.
However, the UAE-based property consultancy warns that rising population figures — projected to grow from 5.3 million today to 7.7 million by 2040 — may place pressure on the housing market. To maintain a sustainable 90% occupancy rate, the country will require another 340,000 units beyond what is currently planned. With more than 80,000 homes expected by 2040, proactive planning will be critical to avoid future shortages.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, (Image credit: Cavendish Maxwell)
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, commented: “As the country moves forward with the 2040 agenda, stimulating investment in the real estate sector will be of increasing importance. Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience, while at the same time supporting national development priorities. However, given the possibility of demand outpacing supply, proactive planning will be essential in avoiding a potential shortfall.”
Hotels, ITCs, and Investment Drive Market Momentum
Hospitality is also seeing rapid expansion, with 5,800 new hotel rooms set to boost current supply by 25%. These will be delivered across 35 new hotels and resorts by the end of the decade. This growth reflects Oman’s rising tourism appeal, bolstered by favorable demographic trends and strong government support.
Occupancy rates remain strong, averaging 85.2% across all residential units, with villas and Arabic houses leading at 87.5%, and apartments rising to 80.8% — a 3% increase over the previous year.
A major focus in Vision 2040 is the development of Integrated Tourism Complexes (ITCs), which allow foreign nationals to purchase freehold property — a rare opportunity in the region. These complexes are under construction in strategic regions such as Muscat, Dhofar, South Al Batinah, South Al Sharqiyah, and Musandam. With prices for ITC apartments ranging from 800 to 1,100 OMR per square metre, Oman offers a more affordable alternative to markets like Dubai, Abu Dhabi, and Doha, while maintaining competitive rental yields between 5% and 8%.
Tourism Surge Fuels Hospitality Expansion
Tourism in Oman is experiencing steady growth, reinforcing confidence in the country’s hospitality sector. In 2024, Oman’s airports handled 14.5 million passengers, marking a 2.5% year-on-year increase. Muscat alone accounted for 12.9 million travelers, while Salalah handled 1.5 million — underscoring the capital’s status as the country’s main air hub and Salalah’s appeal as a seasonal getaway.
Hotel performance also broke new ground, surpassing pre-pandemic levels. Oman welcomed 2.15 million guests to its 3- to 5-star hotels in 2024, a 3.6% increase from the previous year. Hotel revenue rose 6.1% to reach 243 million OMR, and occupancy rates climbed by 2.4%, with Upper Midscale and Midscale hotels leading the growth at 11.1% and 8.9%, respectively.
Currently home to around 270 hotels and 24,000 rooms, Oman’s hospitality market is skewing upscale, with more than half in the Upper-Upscale and Luxury segments. The 5,800 rooms set to be delivered by 2030 — 54% of which will be in premium segments — reflect a clear shift toward high-value tourism.
With strong fundamentals, expanding infrastructure, and increasing investor confidence, Oman is set to become one of the GCC’s most promising destinations for real estate and tourism development in the years ahead.