Lower mortgage rates drive up Oman property market

Demand for homes and offices drove Oman’s property market up 16 percent in 2025, supported by lower lending rates and higher occupancy, new data shows.

The value of real estate transactions in the Gulf state increased to OMR1.27 billion ($3.3 billion) last year, from OMR1.09 billion the year before, according to data released by the National Center of Statistical Information (NCSI). 

About 230,000 properties were sold in 2025, up 1 percent, while nearly 75,000 office spaces were rented last year, 8 percent higher than in 2024. 

“Oman’s real estate market continues to demonstrate stability, supported by a resilient macroeconomic backdrop and steady demand across both the residential and office sectors,” Ihsan Kharouf, head of Oman at Savills Middle East, said. 

Lower mortgage rates also pushed up housing demand in 2025, a report by the National Bank of Oman showed.  

The country’s central bank reduced mortgage rates by a quarter of a percentage point in 2025 as part of an effort to make homes more affordable. 

The number of homes bought using a bank mortgage rose 10 percent to just under 23,000 in 2025, the NCSI said. 

Elevated demand pushed rents higher, local estate agents say. “The rental market went up about 8 percent on average in 2025, especially homes and offices in the city limits and this trend is set to continue this year,” said Harish Kumar, sales representative at Al Mouj Homes. 

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