Oman Rental Market Hit by Double Whammy: Pandemic, Low Oil Prices

Oman Rental Market Hit by Double Whammy: Pandemic, Low Oil Prices

As a result of this twin effect, Savills expects to see increasingly challenging economic conditions and an acceleration of the exodus of the expatriate population.

Market conditions in both the residential and office space rental sectors in Muscat were already in slowdown/recession prior to the Covid-19 pandemic, it cautioned in its latest market report for Oman.

The report highlights the historic correlation between Oman's GDP trends and movement in oil prices, and an assessment of the impact of macroeconomic conditions on the real estate sector. It also offers an in-depth analysis of the office and residential rental markets, and the impacts of Covid-19.

According to Savills, the total population of Oman grew from 3.6 million in 2012 to 4.6 million in 2016 and has levelled off since then.

This growth was driven primarily by