Muscat – An artificial intelligence-backed property valuation mechanism that uses actual transaction data and human oversight to determine fair property values is being introduced as authorities step up efforts to improve transparency and curb manipulation in Oman’s real estate market.

The Ministry of Housing and Urban Planning (MHUP) is implementing the system on a trial basis in partnership with the Oman Real platform. The mechanism is part of a wider move to digitise property valuation under the legislative framework governing the sector, including the Real Estate Register Law of 2026.

Oman Real is 100% Omani-owned and operated, with the partnership also intended to support national expertise and locally developed technology in the digital transformation of the property sector.

Significantly for buyers and sellers, the ministry said the initiative does not introduce any new fees or increase existing rates. The property transaction fee remains at 3%, but will be calculated on the property’s assessed fair value.

Under the system, Oman Real analyses a property’s location and physical characteristics as well as surrounding infrastructure and amenities. These include access to electricity and water networks, schools, commercial centres and roads.

The platform then compares the property with the five nearest properties that have actually been traded within the same geographical area and street to establish a baseline value.

MHUP said the mechanism is intended to reduce reliance on individual judgement and arbitrary pricing while ensuring valuations better reflect prevailing market conditions.

However, automated assessments will not be accepted without verification. Dedicated teams have reviewed property prices in Muscat and other governorates, while directors of Real Estate Registers have been given authority during the pilot phase to evaluate and continuously review results.

Oman Real’s analyses are also integrated with ministry databases and internal systems before a valuation is approved.

‘The platform serves as an integrated measurement tool rather than the sole reference, ensuring maximum accuracy and reliability while safeguarding the market against inflation or manipulation,’ MHUP stated.

Officials say updated valuations are particularly important in areas where infrastructure and services have expanded over time. The ministry cited the example of a plot valued at RO60,000 ten years ago that could now be worth RO93,000 following development in the surrounding area.

For buyers, the mechanism is designed to prevent exaggerated valuations and ensure property is registered closer to its actual market value. Sellers, meanwhile, are expected to benefit from protection against transactions concluded significantly below fair value.

The mechanism is also intended to flag unusual transactions and non-transparent practices, while supporting efforts to combat money laundering in the property sector.

The ministry said the initiative builds on wider measures to strengthen governance and improve confidence in Oman’s real estate market. It has previously worked with the Ministry of Finance to reduce a package of property-related fees aimed at stimulating activity.