SEPTEMBER 2, 2023
Strong oil prices contribute to surge in real estate trading
MUSCAT: Buoyant international oil prices have spurred a significant uptick in real estate trading in the Sultanate of Oman, with transactions totaling RO 1.626 billion at the end of July 2023, up from RO 1.392 billion a year earlier, represent an increase of 16.8 per cent.
This impressive surge in real estate trading comes against a backdrop of strong oil price trends. According to the National Centre for Statistics and Information (NCSI), the average price of Omani crude averaged $74.9 per barrel in July 2023, a key factor that has contributed to the growth in Oman's real estate sector, say market experts.
Judit Lestak, Owner of Vista Real Estate, said increasing oil prices have the potential to significantly benefit Oman's economy by fostering optimism for the country's future prospects, including growth in the real estate sector. Oman's political stability enhances its appeal as a safe investment destination, attracting large investments, notably in projects like the Dar Global Sustainable City in Muscat, and so on, which further contribute to its economic development.
Furthermore, statistics from the NCSI revealed that the fees collected for all legal transactions amounted to RO 38.3 million, marking a 10.9 per cent increase compared to the end of July 2022. However, the trading value of sales contracts experienced a decrease in value by 10 per cent, reaching RO 619 million for 38,440 sales contracts, despite a 4.2 per cent decrease in the number of contracts.
Moreover, the trading value of mortgage contracts experienced a substantial increase of 44.1 per cent, registering RO 1.001 billion for 14,029 contracts, indicating strong activity in the mortgage sector. Furthermore, the number of swap contracts reached 840 contracts with a value of RO 5.9 million, highlighting diverse financial instruments in the real estate market.
As for property deed issuances, by the end of last July, approximately 137,850 property deeds were issued, representing an increase of 4.9 per cent. Notably, the number of property deeds issued to GCC nationals reached 751 properties, marking a remarkable increase of 91.6 per cent. These figures underscore the growing appeal of Omani real estate to international investors and GCC citizens alike.
Oman's real estate market has recently expanded, as seen by a large rise in trade value, which is supported by a dynamic legal and financial ecosystem.