Muscat – Oman’s property market remained resilient in the second quarter of 2026, with transaction values and foreign investment rising despite geopolitical tensions in the region, according to Savills.

In its Oman Property Market Q2 2026 report, the property consultants said the total value of real estate transactions reached RO1.43bn by the end of June, up 5.4% from the same period a year earlier. The number of property contracts increased 12.2%, while mortgage activity remained broadly stable, edging down 0.3%.

Foreign direct investment (FDI) in the real estate sector also continued to grow, reaching RO602.5mn at the end of the first quarter of 2026, a 1.2% year-on-year increase, reflecting sustained confidence in Oman’s long-term property market.

Although Oman recorded a modest economic slowdown during the first quarter, Savills said the medium-term outlook remains favourable. Citing Oxford Economics, the report forecasts GDP growth of 6.3% in 2027 and 7.1% in 2028, supported by higher oil production, resilient non-oil sectors, continued public investment and a business-friendly policy environment.

“Despite ongoing regional uncertainty, Oman’s property market continues to demonstrate resilience, supported by improving investor confidence, a stable economic environment and continued government investment,” said Ihsan Kharouf, Head of Oman at Savills Middle East.

He said rising transaction values and sustained foreign investment reflected the market’s long-term appeal, while infrastructure development and economic diversification continued to strengthen the sultanate’s investment proposition.

The residential market showed varied performance across Muscat’s established communities. Al Mouj retained its position as the country’s premium residential destination, with average monthly apartment rents reaching RO664, while average rents for four-bedroom villas stood at RO1,700.

Elsewhere, apartment rents in Qurum rose 16%, while four-bedroom villa rents in Madinat Sultan Qaboos increased 22%, reflecting strong demand for quality housing amid constrained supply.

The office market remained broadly stable during the quarter. Rental rates in the Central Business District and Qurum were unchanged, while Ghubra and Azaiba recorded rental growth of 4%, supported by steady occupier demand.

Looking ahead, Savills said Oman is well placed to benefit from shifting regional trade patterns. With the ports of Salalah, Duqm and Suhar located outside the Strait of Hormuz, the sultanate is consolidating its role as a regional logistics hub, a trend expected to support long-term demand for warehousing, logistics facilities and commercial real estate.