Sales activity in Oman’s property market has rebounded strongly this year following the pandemic-induced sluggishness in the previous year.
Latest statistics released by the National Centre for Statistics and Information (NCSI) showed signs of a strong rebound in the sultanate’s real-estate market in July.
Total value of traded property in Oman grew 28.8 per cent to RO1.560bn during the January–July period of 2021 from RO1.211bn in the same period of 2020, signalling the sector’s resilience amid easing pandemic restrictions. Real-estate transactions this year have rebounded to the pre-pendemic levels.
Of total traded value of property in Oman, traded value of sales contracts surged by more than 55 per cent to RO687mn in the first seven months of 2021 compared with RO442.9mn in the same period a year ago, the NCSI data showed.
Figures revealed that the number of sales contracts jumped by 84 per cent to 49,443 this year from 26,878 in the first seven months of 2020.
With the sharp rise in number of property transactions, mortgage activity in the sultanate also rebounded sharply in recent months.
Traded value of mortgage contracts rose by nearly 20 per cent to RO860.7mn during the January–July period against RO719.8mn in the corresponding period of last year.
Number of executed mortgage contracts jumped 58.6 per cent to 10,634 contracts in the first seven months of this year from 6,706 in the same period of last year.
Savills, the leading global real- estate advisory firm, in a latest report highlighted that Oman’s real-estate market is in a significantly improved position in comparison to this time last year, but headwinds remain for the sector. It stressed that opportunities for successful development will need to be well considered and clearly focused on evident market gaps, opportunities and needs.
Total number of properties issued in the sultanate reached 144,670 at the end of July 2021, a robust growth of over 55 per cent from 92,929 properties issued a year ago, according to the NCSI.
Properties issued for the citizens of GCC countries in Oman increased to 386 this year compared to 220 during the January–July period of 2020.
According to a report released by Kamco Investment, residential real-estate prices in the GCC countries may have bottomed and total value of transactions for the year 2021 is on course to eclipse 2019 levels.
In the first half of 2021, total value of real-estate transactions in the GCC reached US$64.9bn and have approached within 26 per cent and 32 per cent of the full year figures of 2020 (US$90.5bn) and 2019 (US$96.5bn), respectively, according to the report.
‘The higher transaction activity year-on-year in the first half of 2021 was largely due to opportunistic buying of bargain-priced properties, as property prices reached multi-year lows from the impact of COVID-19 in early 2020,’ Kamco Investment said.
Moreover, it said, a higher average value per transaction was achieved in the first half of 2021 for key GCC markets, when compared to pre-pandemic levels of the first half of 2019, pointing towards the investment appetite for attractively priced real estate.