Muscat, Property Market Outlook, Winter 2015/16
The market is coming under increasing strain from the prolonged period of low oil prices and the impact this is starting to have on the ability of the economy to sustain growth and strong job creation levels.
- Residential rents dipped for the first time in over a year. This has been underpinned by rising levels of more secondary stock, but demand for the city’s Integrated Tourism Complexes (ITCs) remains high
- Outside the ITCs, land owners have begun mobilising on sites to develop additional residential accommodation to capitalise on current demand levels
- There is a growing appetite for gated community living, with the younger Omani generation also being drawn in by the attractive lifestyle on offer
- The outlook for the office market has weakened and the ability of the government to sustain high infrastructure spending, which has been the backbone of economic growth recently, may be undermined by any further oil price shocks