I was delighted to be asked to participate in an interesting panel discussion this week at the launch of the Cavendish Maxwell Oman Property Market Report.
While the Oman real estate market continues to deal with the challenge of considerable oversupply (particularly in the residential sector), there remains a lot of potential in 2019 and beyond.
The tourism sector continues to develop, the light industrial and logistics sector continues to be key, the first REIF has received initial approval from the CMA in January 2019, the transformation of Mina Al Sultan Qaboos port has begun, the country’s largest development (Madinat Al Irfan) has been inaugurated and work has commenced on the pathfinder affordable housing PPP development at Barka.
There continues to be a great interest in real estate development and investment in Oman, which was evidenced by the sheer number of people wanting to hear and discuss views. There was not even standing room left!
The interesting panel discussion touched upon a wide range of topics, including: the potential in the logistics sector; the role and mission of Omran in pushing the National Strategy for Tourism 2040; the importance of a credible developer and business plan when seeking financing; affordable housing and PPP; the challenges affecting urban planning and REIFs/REITs.
Commenting on the report, Khalil al Zadjali, head of Cavendish Maxwell in Oman, said, “Oman’s real estate market showed slow growth in 2018, but there were improvements in certain areas. Real estate transactions increased 1.2 per cent compared to 2017, although sales contracts decreased by a percentage point. Other significant areas of development have been in the tourism and industrial sectors, with new hotel room inventory and industrial estates expected to be added in 2019.”