Property market in Oman on recovery path: The Central Bank of Oman

Property market in Oman on recovery path: The Central Bank of Oman

Muscat: The Central Bank of Oman (CBO), which released the eleventh issue of the Financial Stability Report (FSR) 2023), has said that the 'Omani financial system exhibited remarkable resilience to the heightened volatility and liquidity stress that permeated a large part of the global financial system.

In addition, the FSR 2023 reaffirms that in Oman 'the short-term risks to financial stability remain muted" and that the "Omani financial system remains strong and well-poised to support the economy.'

The report stated that unlike the developments in many advanced countries, the real estate market in Oman began to pick up in 2022 amid the improvement in economic conditions.

The recent recovery in the population profile from the pandemic eased some segments of the Omani real estate market, reviving the demand for real estate properties. In addition, given the rise in policy rates, so far there are no signs of tightening in lending to the real estate sector as the lending rates remained unchanged.

CBO has authorised FLCs to lend for commercial real estate projects besides lending to real estate developers, this additional source of financing will further bolster the real estate sector in Oman.

The expatriate population, a major user of rental residential properties, rose by eight