Savills Middle East releases Oman Property Market Report Q4 2025, highlighting stable residential and office market conditions

Savills Middle East has released its latest Oman Property Market Report Q4 2025, providing an overview of macroeconomic conditions and key trends across Muscat’s residential and office markets.

The report highlights Oman’s GDP reaching OMR 26.6 billion by Q3 2025, reflecting 2% year on year growth, supported by performance across both oil and non oil sectors. Total property transaction values reached OMR 2.8 billion as of end November 2025, with contract volumes rising 17.9% year on year, signalling continued buyer activity.

Across Muscat, rental performance has remained broadly stable in both the residential and office sectors. Prime lifestyle locations, including Al Mouj, continue to command a premium, particularly within the villa segment. While modest rental softening has been observed in some apartment submarkets, there is limited evidence of any major shift in tenant behaviour, with demand remaining resilient overall.

The office market continues to reflect balanced conditions, with rental rates holding steady across key submarkets, supported by aligned supply and demand dynamics.

The report also explores the impact of recent regulatory developments, including the formalisation of the short stay sector and long term residency incentives linked to property ownership. These measures are expected to support occupancy levels and sales demand over the medium to long term.

Commenting on the findings, Ihsan Kharouf, Head of Oman at Savills Middle East, said, “Oman’s real estate market continues to demonstrate stability, supported by a resilient macroeconomic backdrop and steady demand across both the residential and office sectors. While we have seen some modest rental softening in lower grade apartments, locations such Bowsher, and price ITC locations such as Al Mouj continue to command a premium, particularly in the villa segment. The formalisation of the short-stay sector and long-term residency incentives linked to property ownership are also expected to support occupancy levels and sales activity over the medium to long term.”