Oman real estate ‘in good health despite drop in deals’

Oman real estate ‘in good health despite drop in deals’

Higher interest rates are hitting Oman’s real estate industry, but economists are confident that a drop in transactions in January does not signal the start of a downturn in the sector. The value of real estate deals in the sultanate fell by more than 20 percent to OR208 million ($540 million) in January, compared to […]

Deal value down 20% in January

‘One-off correction’, economists say

Ambitious government projects

Higher interest rates are hitting Oman’s real estate industry, but economists are confident that a drop in transactions in January does not signal the start of a downturn in the sector.

The value of real estate deals in the sultanate fell by more than 20 percent to OR208 million ($540 million) in January, compared to OR261 million for the same month in 2023, according to the National Centre for Statistics and Information.

“I’m not sure I’d read too much into one month of data in isolation as it’s a volatile series,” said Maya Senussi, lead economist, Middle East, at Oxford Economics.

NewsletterGet the Best of AGBI delivered straight to your inbox every week

Real estate transactions in the sultanate surpassed OR2.6 billion in 2023, buoyed by continued population growth and the country’s efforts to diversify its economy away