H E Dr Khalfan bin Said bin Mubarak al Shu’aili, Minister of Housing and Urban Planning, has issued Ministerial Decision No 357/2020 regarding regulations on selling residential real estate units under the usufruct system to non-Omanis in multi-storey commercial and residential buildings in some locations in Muscat governorate.
The decision pertains to non-Omanis – whose stay in the sultanate is not less than two years – submitting a usufruct application.
It comes as part of a package to stimulate investments in the real estate sector to achieve specific growth rates to enhance performance of related activities and achieve sustainable development.
The decision states that the seller will pay three per cent of the residential real estate unit’s value, and the buyer five per cent, upon its registration. Usufruct agreements are valid for 50 years, renewable for a period not exceeding 99 years.
The decision aims to create a competitive business environment attractive to investors in the real estate sector while also injecting cash into the market.
The usufruct system is one of the measures employed to diversify the economy during the current oil price slump. It also aims to keep pace with global trends and investments in the real estate sector in the sultanate.
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