Oman’s Real Estate Sector Analysis: New Projects, Dropping Rents, VAT And Usufruct Laws

Oman’s Real Estate Sector Analysis: New Projects, Dropping Rents, VAT And Usufruct Laws

As the Sultanate's promising real estate industry gears up to formulate a synergy with the oil and gas sector to build on the nation's GDP, it must weather shrinking residential demands and a challenging post-pandemic-era to present an upturn in ROI. Alvin Thomas writes…

As a year chock-full of ups and downs, 2020 has been nothing short of a global battle of wits. And while the Sultanate has been at the helm of the region's fight against the Novel Coronavirus (COVID-19), the nation has also had its own set of challenges to overcome – from implementing resilient strategies to cope with a global recession arising from the pandemic and dwindling oil prices, and stabilising a quivering labour market – all while looking ahead to achieve the goals set under Oman Vision 2040.

The multi-billion Riyal-strong real estate market has long been touted as an extenuating asset than Oman could potentially bank on as it aims to shift its focus from a hydrocarbon-funded economy to a diversified knowledge-based economy.

This would mean leveling the current playing field where the oil and gas sector contributes up to 37 per cent of the nation's overall Gross Domestic Product (GDP), while also plugging a 16.7 per cent budget