Oman’s property market demonstrated resilience in Q1 2026, with the total value of property transactions reaching OMR 678 million by the end of March 2026, an 18.4% increase compared to the same period in 2025, according to the latest Market in Minutes report from Savills.

In the rental segment, Al Mouj continued to command a premium in the two-bedroom apartment segment, with average monthly rents reaching OMR 710, up 3% in Q1 2026, reinforcing its position as the market’s most sought-after residential address. Muscat Hills recorded average rents of OMR 491, up 2%, while Qurum maintained stable rates at OMR 350. Al Khuwair saw a decline to OMR 385.

In the four-bedroom villa segment, Al Mouj retained its market-leading position with average monthly rents rising to OMR 1,770, up 2%. Muscat Hills recorded strong growth of 25%, with average rents reaching OMR 1,200, while Madinat Sultan Qaboos recorded average rents of OMR 908, down 1%.

In the office space, Muscat’s office market remained stable across all key submarkets in Q1 2026. Rental rates in the CBD held firm at OMR 2.0 per sqm per month, while Qurum maintained rates of OMR 3.5 per sqm per month. Al Khuwair and Shatti Al Qurum recorded no changes, at OMR 4.5 and OMR 6.0 per sqm per month respectively, with Ghubrah and Azaiba also maintaining stable performance.

Underpinning this performance, Oman’s broader economy recorded GDP of OMR 42.1 billion by the end of Q4 2025, representing a 4.6% year-on-year increase, driven by steady oil and gas sector performance alongside continued non-oil growth. The construction sector contributed OMR 2.8 billion, up 2.4% year-on-year, while inflation remained well under control at 1.26% in March 2026. Foreign Direct Investment in the real estate sector stood at OMR 584.3 million by end of Q4 2025, a modest 2.4% year-on-year decline.

Ihsan Kharouf, Head of Oman at Savills Middle East, said: “Oman’s property market continues to demonstrate resilience, with transaction activity remaining robust despite a more complex regional backdrop. While external factors have influenced sentiment in the short term, the overall impact on real estate fundamentals has remained measured.

We are seeing sustained demand across both residential and commercial segments, particularly for well-located, high-quality assets, alongside stable rental performance across key submarkets. This reflects a balanced market environment, supported by Oman’s relatively limited exposure to regional disruption and continued economic stability.

Looking ahead, while global supply chain challenges and inflationary pressures may persist, Oman’s strong underlying fundamentals, supported by uninterrupted exports and ongoing economic diversification, are expected to underpin continued market activity over the medium term.”

Regional conflict impact

Economists have revised Oman’s 2026 GDP growth forecast down to 1.9%, reflecting regional disruptions linked to the Iran conflict. However, Oman continues to be viewed as one of the least exposed economies to spillover risks in the region, with port operations continuing and the overall impact remaining relatively limited compared to that experienced elsewhere.

Public finances are expected to benefit from largely uninterrupted exports, particularly in a high energy-price environment. While the conflict has contributed to some global supply chain disruption and inflationary pressure, Oman’s fundamentals remain supportive of continued market activity.