Muscat, Property Market Outlook, Spring 2018
Cluttons has released its Muscat Property Market Outlook report for Spring 2018.
Buoyed by higher oil prices, Oman’s economy is recovering well from the lows of 2016, and is projected to grow by 3.6% in 2018. If sustained in the longer term, this growth is expected to have positive impacts across the Sultanate’s property market.
The government’s strong push to boost overall economic growth has resulted in a number of very encouraging developments for the property market, such as the much-anticipated decision to allow the creation of a real estate investment fund (REIF). This will pave the way for investments in larger scale real estate projects at significantly lower price points and with far greater liquidity, in comparison to more traditional real estate investment.
We expect residential rental demand, in the short to medium term to be impacted by the Ministry of Manpower’s decision to temporarily ban the issuance of work permits to expats in key sectors. However, if we continue to see gains in oil prices, the economy will continue to be driven upwards, ultimately boosting the residential market, particularly in terms of overall requirements.
Elsewhere, office rents remains flat, with average headline rents holding steady in the city’s key submarkets during the first quarter of 2018. However, even in a market that has faced uncertainties and setbacks in the form of a demand slump following the shock oil price rout four years ago, there are still occupiers who are drawn to high quality buildings and are committed to upgrading space.
Further detail on the city’s office, residential and hospitality sectors is presented in the report, along with our latest forecasts, so please download your copy.