Muscat Property Investment 2025: Guide for Foreign Investors & Expats

Market Recovery and Price Trends

Between 2015 and 2021, Muscat’s property prices dropped by 30% because of the soft oil economy and pandemic-related slowdowns. The tide has turned. Residential Property Price Index states that prices in Q1 2025 rose 7.3% year-on-year, and analysts expect 3-7% appreciation across the calendar year. 

The residential land price index increased by 5.5%, with apartment prices rising 4.3% and villa prices increasing by 4.5%. Other housing categories posted a sharper 13.4% gain.

At the governorate level, Muscat Governorate led the growth in residential land values during Q1 2025, recording a 17.4% year-on-year increase. Musandam Governorate followed it at 12.8%, North Al Batinah at 7.3%, South Al Batinah at 6.1%, and Dhofar at 6%. South Al Sharqiyah also saw a more modest rise of 3.4%.

Conversely, several regions experienced declines. Al Buraimi Governorate registered the steepest drop, with residential land prices down 35.1%, followed by Al Dhahirah with a 25.3% fall, Al Wusta with a 20.4% decrease, Al Dakhiliyah with a 3.7% decline, and North Al Sharqiyah with a slight 0.8% dip.

Leading districts like Al Muj and Qurum are at the top of this revival, with luxury waterfront developments and the restoration of historic landmarks attracting high-net-worth buyers. The city’s overall annual appreciation rate averages around 3%, which is considered stable compared to the fast-paced markets of the Gulf.

For investors, this quick recovery means that Muscat remains much more affordable than Dubai or Doha on a per-square-meter basis, providing a more accessible entry point for long-term capital appreciation.

Rental Returns and Demand Drivers

Rental returns in Muscat are competitive for a stable market. Net yields vary between 3-5%, with certain luxury ITC (Integrated Tourism Complex) properties achieving the higher end of the range. For example, Al Mouj recorded rent increases of 10-20% during the past 18 months.

The key reasons for high demand include:

• The expat population grew by 33% between 2022 and 2023.
• Vision 2040 states that Oman should be creating jobs beyond oil, increasing demand for modern housing among professionals and entrepreneurs.
• The government PPP model encourages private developers to deliver affordable housing.

Political and Economic Stability

Investors are looking for political and economic stability. Muscat is a city that offers both. The World Bank political stability index scored 0.59 in 2023 (on a scale of –2.5 to +2.5), placing Oman above the global average and in the 65th percentile worldwide. As for the economic stability, since 2020, Sultan Haitham has accelerated economic diversification, infrastructure upgrades, and debt reduction. The main purpose of Vision 2040 is to reduce reliance on oil and encourage private sector investment, making the real estate market a long-term and attractive investment option.

Legal Framework and Foreign Ownership

The Omani government created an opportunity for expats or foreign investors who want to buy a property in their country. Foreign nationals can purchase freehold property in designated ITCs such as Al Mouj, Muscat Bay, Sultan Haitham City, Jebel Sifah, and the fast-developing Yiti - Aida & Sustainable City. Freehold property gives its buyers all the title, inheritance rights, and the ability to sell or lease without Omani sponsorship.

Minimum Investment and Residency

Here are some key points that you, as an investor, need to consider:

• Investments of OMR 200,000 (~USD 520,000) or more grant a five-year renewable Golden Visa, enabling long-term residence and family sponsorship.
• Individual projects often require a minimum property price of around OMR 45,000 (~USD 120,000).
• There are no property or capital gain taxes.
• While purchasing a property, you need to pay a one-time 3% transfer fee.

Key Investment Locations

Let’s have a look at the top locations in Muscat:

Al Mouj Muscat

Al Mouj is perhaps one of the best-known ITCs, which offers luxury apartments, townhouses, and villas alongside a marina, golf course, and retail promenades. It consistently attracts expats and investors, as it offers 3-5% net rental yields and steady capital growth.

Muscat Bay

Located between the Hajar Mountains and the Arabian Sea, Muscat Bay offers both a great natural view and high-end resort living. Villas and branded residences appeal to lifestyle investors who are looking for privacy and luxury.

Sultan Haitham City

Sultan Haitham City emphasizes smart infrastructure, eco-friendly planning, and mixed-use residential and commercial hubs. Early investors stand to benefit from first-mover advantages as the city expands.

Yiti and the Sustainable City

The Sustainable City – Yiti is among the region’s most ambitious eco-smart seafront projects. Spanning nearly 1 million sqm, it will feature over 1,600 homes, branded units such as Nikki Beach Residences, and extensive green infrastructure

Investment Process for Foreigners

Buying a property in Muscat isn’t just about finding a home and transferring money. Oman’s real estate market is full of regulations, which require a full understanding of the ownership laws, residency opportunities, financial options, and legal steps that you need to follow. Below you’ll find a detailed step-by-step guide that’ll help you better understand the investment process in Muscat.

Define Your Investment Objectives

The first and most important question is “why?”. Why do you want to invest in the Muscat real estate market? Are you looking for high rental yields? Or maybe you’re interested in relocating to Muscat and taking advantage of the benefits that Oman offers? Or maybe what interests you is long-term residency?

Remember that your goal will determine the type of property, location, and legal structure that is most suitable for you. For example, if you are looking for a home because you are interested in getting a long-term residency, you should research ITC projects that grant freehold ownership and make you eligible to apply for Oman’s residency or Golden Visa programs. If you’re interested in stable cash flow, focus on established communities with high expatriate demand, such as Al Mouj, Muscat Bay, or Jebel Sifah.

Understand the Legal Framework

As a buyer, you can acquire only the property that’s listed in Integrated Tourism Complexes on a freehold basis. Freehold rights include full ownership, the ability to sell or lease, and inheritance rights. Projects such as Al Mouj, Muscat Bay, Jebel Sifah, and Yiti offer great opportunities for buyers. Additionally, you need to consider the residency program you’re applying for.

If you’d like to get a 10-year residency, the purchased property should be valued at least at OMR 200,000 (~USD 520,000).

Consult With an Experienced Agent

As we’ve already mentioned before, Omani property law contains nuances, such as zoning approvals, land build requirements, and residency documentation. To make sure you don’t mess it up, it’s highly recommended to engage a trusted agent like Mirabello Consultancy, which will give you personalized guidance through each step.

Financial Preparation

Before buying a property, carefully arrange your budget. Consider:

• The minimum amount of investment, which is OMR 200,000 for residence permit.
• You need to calculate the 3% property transfer fee, legal fees, notary charges, and any applicable VAT on services.
• Learn the payment plan. Many developers offer structured payment schedules (for example, 30/70 plans for off-plan properties).
• Local mortgages are available to foreigners in select cases, but many investors prefer cash purchases for faster ownership registration and residency processing.

Property Selection and Due Diligence

After defining your budget and objective, you need to find a suitable property. The key considerations include:

• Location & Amenities: Proximity to schools, hospitals, and business districts for rental properties.
• Developer Track Record: Choose developers with a history of on-time delivery and strong financial backing.
• Title Verification: Confirm that the property is free of liens, that the developer holds the appropriate ITC license, and that all municipal approvals are in place.
• Build Requirements: If purchasing land, note that Omani law requires construction within four years, or the government may reclaim or auction the plot.

Offer, Negotiation, and Sale-Purchase Agreement

Once the property is selected, follow these steps:

• Write a letter of intent, where you offer a small deposit (often 5-10%, which will secure the unit while contracts are prepared.
• Negotiate over the terms such as price, payment schedule, and handover timeline with the developer or seller.
• Prepare the sale-purchase agreement (SPA). This legally binding contract outlines payment milestones, completion dates, penalties for delays, and developer obligations.
• For off-plan purchases, pay the funds into a government-approved escrow account to safeguard buyer rights.

Registration and Transfer of Ownership

After all the processes mentioned before, make sure that the property is registered with the Ministry of Housing and Urban Planning, the title deed is issued in your name, and you’ve paid the one-time 3% transfer fee at the registration.

Oman Residency or Golden Visa Application

For those seeking residency or a Golden Visa, you must submit the property title deed, passport, medical insurance, and proof of investment to the Royal Oman Police or designated immigration authority. This process typically takes 4-8 weeks.