Oman sees property transactions slump in April

Oman sees property transactions slump in April

  • Sunday, 4 June 2017 5:19 PM

Residential rents in Muscat dropped by 4.2% in Q4 2016.

The value of real estate transactions in Oman this April was 78% lower than corresponding figures for last year, according to the sultanate's National Centre for Statistics and Information (NCSI).

The latest monthly figures reveal that transactions worth $2.5bn (OMR971.4m) were recorded in April 2017, while fees worth $78.7m (OMR30.3m) were collected in the same month, 20.8% higher than last year's figures, Construction Week reports.

Up to 21,675 sales contracts were recorded this April, marking a 19.4% decline compared to last year's 26,883.

However, the value of traded sales contracts during the month was $1.1bn (OMR442.9m), 11.9% higher than 2016 figures.

Title deeds registered for the first time this April stood at 83,307, marking a 4.8% decrease compared to 2016's 87,489 title deeds.

Cluttons' Muscat Spring 2017 Property Market Outlook report, released this April, revealed that average residential rents in the Omani capital (pictured) dropped by 10.1% in 2016.

Rents in Muscat dipped by 4.2% in Q4 2016, with monthly rents averaging under $1,818 (OMR700) at the time.

However, the report added, 2017 "has got off [...] to a more stable start".

Commenting on the report's findings, Faisal Durrani, head of research at Cluttons, said the best-placed landlords in Muscat are those "taking a more proactive approach" to fulfilling tenant demands for increased value".

"Challenging market conditions have led to flexible, innovative, and revised approaches from landlords across the Omani capital in an effort to entice prospective tenants," he added.

In April, Oman’s Ministry of Tourism signed an agreement with Amouage Hotels and Resorts for the development of an integrated tourism complex worth $1.03bn (OMR400m) in Muscat.

The waterfront development project, Naseem A’Sabah, will be located on North Al Mawleh Beach, in the wilayat of A’Seeb.

It will feature a five-star hotel, a business hotel, as well as 696 housing units, a marina, and a yacht club.