Oman: Overview
Country Rating » 
In Depth
Directory
Global Statistics
Regional Statistics
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Oman is now open to foreign buyers!
With its striking desert landscape are miles of beautiful beaches, stunning countryside and wild mountain hikes, Oman is now open. Freehold ownership of villas as well as land is now possible for all nationalities, but only in Tourism Designated Areas (Royal Decree of February 19th 2006).
Expatriate property owners also automatically acquire residency rights for themselves and their immediate families, by virtue of the property acquisition.
“Oman has so much to offer,” says Janet Durridge, manager of residential development at Hamptons Oman.
"There is a lot of demand for investment from British people, and from GCC residents. Some are multi-buyers, they intend to live in one property and rent the rest out.
“What we’re finding is that people who are regular visitors to Dubai and are a bit fed up, are deciding to take a two week package with a week in Oman. The next thing is, they ring up with a view to buying,” says Durridge. “Compared to Dubai it is cheap.”
The rental market is likely to be sustained by growing tourist interest in Oman as it opens up, and by increased economic development, Durridge believes.
The minimum price (at the moment) is 100,000 Rials (around US$260,000) for a 140 sq. mt. two bedroomed apartment in the Wave, Muscat, Oman’s top tourism and beachfront residential development.
Another major project is ‘Blue City’, being built by Al Sawadi Investment & Tourism Co (ASITs), which will be home for 200,000, located on 16 kilometres of beach at Barkha. Expatriates will be able to own property in this project.
RENTAL YIELDS
Is it too early to talk about yields in Oman?
Supply has not kept pace with demand, according to Cluttons Oman. Rentals have slightly increased recently at the upper end, as the number of expatriates has increased.
“Conservatively, I’d say yields [in the new developments] will be at least 7%,” says Hampton’s Burridge.
TAXES AND COSTS
Oman: Absolute freedom from tax
income taxes are levied in Oman.
Capital Gains: There are also no capital gains taxes.
Inheritance: There are no inheritance taxes.
Residents: The system is the same for residents and non-residents.
BUYING GUIDE
Buying costs in Oman are minimal
The total roundtrip transaction costs are just around 3%. Because of the relative immaturity of the real estate market most of the properties are bought from the government.
LANDLORD AND TENANT
Oman's law is pro-landlord
Rents
The initial rent can normally be freely determined by the parties by mutual agreement.
Security Deposits
The landlord's interests are protected by either:
a. An advance payment of three month’s or 1 year’s rent; or
b. Promissory note for the payment of rent throughout the lease; or
c. Post dated cheques for each of the rent payment dates.
ECONOMIC GROWTH
High oil prices fuel high growth
Oman is the oldest independent state in the Arab world. It has a population of three million. Mainly due to its oil exports, GDP per capita is around US$13,891.
The country is liberalizing its markets and joined the World Trade Organization (WTO) in November 2000. The U.S.-Oman Free Trade Agreement was signed in January 2006.
Economic growth has to date been in the medium range. To reduce unemployment and limit dependence on foreign labor, the government is encouraging the replacement of foreign expatriate workers with local workers.
The government intends to spend more on developing industry and tourism to diversify, create jobs for Omanis, and develop Oman's interior.
In 2005, Oman signed agreements with several foreign investors to boost oil reserves, build a power plant, and develop a second mobile phone network.
RESIDENTIAL PROPERTY AROUND THE WORLD
Asia & Pacific
Bubble fears prompt foreign ownership limits in China
America & Caribbean
The slowdown of the U.S. housing market
Middle East and Africa
Bahrain is open to foreigners and sizzling hot
 |
|
 |
|
| RESIDENTIAL PROPERTY FACTS | |
| Price (sq.m): n.a. | Rental Yield: n.a. |
| Rent/month: n.a. | Income Tax: 0.0 Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income. |
|
Roundtrip Cost:
3.0%
The total cost of buying and then reselling an apartment. Includes: * all transaction taxes and charges: * lawyers' and notaries' fees * agents' fees Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000. |
Cap Gains Tax: 0.0 Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation. |
| Landlord & Tenant Law: Pro-Landlord Rating is based on a detailed study of each country’s law and practice. | |
APRIL 2008
MARCH 2008
- Oman rent law to safeguard tenants - Arabian Business
JULY 2007
JANUARY 2007
- Oman Real Estate Market - Omanaqari
- Global hot spots - Business online
Subscribe to our Newsletter!
Enter your email address to sign up.
