In Oman, non-Omani citizens are generally not permitted to own land, but they can purchase residential and commercial properties in designated integrated tourism complexes or through leasehold agreements.
In addition, there are specific regulations and designated areas where this is permitted.
Benefits of Buying Property in Oman
Here are some of the key advantages:
- Growing economy and increasing tourism
- Low tax regime
- Strategic location in the Gulf region
- High-quality infrastructure and modern developments
Potential challenges:
- Changing regulations: Stay informed about any updates to property laws for foreigners.
- Cultural differences: Familiarize yourself with local customs and business practices.
- Market fluctuations: Research market trends and seek professional advice.
Choosing the Right Location
Identifying a great location for your real estate investment is an important part of the process.
Here are some of the top areas to consider:
1. Al Mouj (The Wave), Muscat
Al Mouj stands out as the premier Integrated Tourism Complex (ITC) in Oman, making it an excellent choice for foreign investors. Located near Muscat International Airport, this development offers:
- A stunning marina
- High-quality infrastructure
- A Greg Norman designed golf course
- Proximity to luxury hotels like Kempinski Muscat and the upcoming St Regis
- A variety of property types, including villas and apartments
- High liquidity and popularity among both locals and expatriates
2. Shatti Al Qurum, Muscat
Known for its beautiful beach and upscale amenities, Shatti Al Qurum is ideal for luxury villa investments.
Benefits include:
- High rental yields and increasing property values
- Proximity to high-end restaurants and beach access
- Popular among affluent residents and expatriates
3. Madinat Al Sultan Qaboos, Muscat
This upscale residential area is perfect for those looking to build their dream home. Key features include:
- Available residential plots
- High demand for family homes
- Established neighborhood with good infrastructure
4. The Wave, Muscat
The Wave is a waterfront community offering attractive townhouse options.
Highlights include:
- Stunning sea views
- High-quality infrastructure
- Desirable location for both residents and investors
5. Muscat Hills
While more affordable than Al Mouj, Muscat Hills offers a different investment proposition:
- Inland location near the airport
- Golf course within the development
- Lower price point for entry into the Muscat property market
6. Salalah
For those looking beyond Muscat, Salalah in southern Oman is emerging as an attractive option. The city offers:
- Tropical climate and natural beauty
- Growing luxury property market, especially in waterfront resorts
- Potential for high rental income from tourists
- New developments like Amazi, Shaza Salalah, and Mysk by Shaza
Financing Options
Foreign investors can also explore mortgage options from international banks such as HSBC. These banks may offer more flexible terms and conditions tailored to expatriates.
Also, key local banks offering mortgage services include:
- Ahli Bank
- National Bank of Oman (NBO)
- Bank Sohar
- Bank Muscat
- Bank Dhofar
Frequently Asked Questions
What is Integrated Tourism Complexes or ITCs?
Foreigners, whether residents or non-residents, can purchase property in designated ITCs. These properties can be used for residential or investment purposes.
What is first-class or second-class residency?
Properties worth below 250,000 OMR can only be purchased through usufruct agreements or within ITCs.
Properties worth 250,000 OMR or more can grant the buyer second-class residency.
Properties worth 500,000 OMR or more can grant first-class residency.
Which locations are restricted areas for foreigner buyers?
Foreigners aren’t allowed to buy a property in certain areas, including:
- Governorates of Wusta, Dhahirah, and Musandam.
- Specific regions in Dhofar (except Wilayat Salalah), Jabal Shams, Jabal Akhdar, Masirah, Shinas, Liwa, and other strategically important islands or mountains.
- Areas near historical, security, and military sites.
Which type of properties could foreigners buy?
Foreigners can buy a range of different properties including residential (such a house, villa or apartment), commercial, and industrial properties, depending on the value and location of the property.
It’s important to note that there are some conditions and procedures:
- Foreign buyers must be at least 23 years old and possess a residence permit valid for more than two years.
- The property must be intended for housing the buyer and their immediate family.
- The property must meet specific criteria, such as a minimum value and construction standards.
These regulations aim to promote foreign investment while maintaining control over strategic and culturally significant areas.