Cavendish Maxwell: Oman to Add 62,800 Homes & 5,800 Hotels by 2030

Oman is on track to deliver 62,800 new residential units by the year 2030, with 5,500 of those set to launch this year alone. This surge in supply is part of the Sultanate’s broader strategic goals, according to a new report from real estate consultancy Cavendish Maxwell.

Significant Growth in Hospitality Sector

As highlighted in the Oman Real Estate Market Performance Report, unveiled during Oman Design and Build Week, the country will add 5,800 new hotel rooms over the next five years. This expansion—spanning 35 new hotels and resorts—will increase Oman’s total hotel inventory by approximately 25% by 2030.

Residential Market Expands Steadily in 2024

In 2024, Oman delivered 38,400 new homes, increasing the national housing supply by 3.6% to reach around 1.1 million units. Muscat remains the primary residential hub, followed by Al Batinah North and South, and Dhofar.

Oman Vision 2040: Shifting Toward a Diversified Economy

These developments are aligned with Oman Vision 2040, which aims to reduce the country’s dependency on oil and shift towards diversified economic growth. The vision targets 90% of GDP to come from non-oil sectors. With the national population projected to reach 7.7 million by 2040—up from 5.3 million—housing demand is expected to rise sharply, with over 80,000 new homes planned before the decade closes.

Potential Housing Shortfall Amid Population Surge

Despite strong development pipelines, Cavendish Maxwell warns that Oman could still face a housing shortage. To maintain a sustainable occupancy rate of 90%, the country would need approximately 340,000 additional residential units by 2040.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said: “Oman is undergoing a meaningful economic transformation, with strong momentum in non-oil sectors and a growing population driving demand across real estate and infrastructure. Vision 2040 is not just a plan - it’s a commitment to a sustainable, knowledge-driven, globally competitive future. As the country moves forward with the 2040 agenda, stimulating investment in the real estate sector will be of increasing importance. Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience, while at the same time supporting national development priorities. However, given the possibility of demand outpacing supply, proactive planning will be essential in avoiding a potential shortfall.

“Oman’s tourism sector is also poised for continued, stable growth, with international visitors on the rise and thousands of new hotel rooms in the pipeline. Backed by Government initiatives, growing investor confidence and favourable demographic trends, Oman’s real estate, tourism and hospitality sectors are well positioned for sustained, long-term development.”

Stable Residential Occupancy Rates in 2024

Occupancy across Oman’s residential market remains healthy, averaging 85.2%. Villas and traditional Arabic houses continue to perform slightly better at 87.5%, while apartments lag slightly at 80.8%. Notably, apartment occupancy improved by 3% year-on-year.

Integrated Tourism Complexes Offer Unique Investment Appeal

Integrated Tourism Complexes (ITCs) are set to become key contributors to Oman’s real estate growth. These developments uniquely allow foreign nationals to purchase freehold property and provide more affordable pricing compared to other Gulf states, while delivering similar rental returns. New ITCs are under development in strategic areas including Muscat, Dhofar, South Al Batinah, South Al Sharqiyah, and Musandam.

ITC Prices and Yields Offer Regional Competitiveness

Apartment prices within ITCs typically range from 800 to 1,100 OMR per square metre—well below rates in Dubai, Abu Dhabi, or Doha. Rental yields are competitive, averaging between 5% and 8%. Villas in ITCs are priced from 750 to 1,000 OMR/sq metre, also significantly lower than in comparable GCC cities.

Branded Residences: A Premium Real Estate Trend

Oman’s luxury residential segment is seeing growing demand for branded residences, appealing to buyers seeking upscale, high-quality living. Projects include La Vie by Tivoli (1,300–1,500 OMR/sq m), St. Regis by Marriott (2,100–2,400 OMR/sq m), and the Mandarin Oriental-branded homes (2,400–2,600 OMR/sq m).

Tourism Sector Sees Strong Momentum

Tourism in Oman continues to strengthen, driven by both domestic and international visitors. In 2024, Oman’s airports handled a combined 14.5 million passengers, a 2.5% increase from the previous year. Muscat remains the main air hub with 12.9 million passengers, while Salalah, a seasonal destination, managed 1.5 million. Oman's hotel industry surpassed pre-COVID levels in 2024, hosting 2.15 million guests in 3- to 5-star properties—a 3.6% increase over 2023. Revenue rose by 6.1% to reach 243 OMR. These figures signal a stable and promising outlook for tourism growth.

Upscale Hospitality Development Gathers Pace

The Sultanate currently has around 270 hotels and resorts with a combined 24,000 rooms. More than half cater to the upscale and luxury market. An additional 5,800 rooms across 35 new properties are planned by 2030, with 54% targeting the high-end tourism segment.

Hotel Performance Shows Strong Gains in 2024

Oman’s hotel occupancy increased by an average of 2.4% in 2024. The midscale and upper midscale segments recorded the largest improvements, with occupancy rising by 8.9% and 11.1% respectively. Average Daily Rates (ADR) hit 53.4 OMR, with those same segments seeing rate growth of 3.8% and 5.7%.