Oman set to deliver 62,800 new residential units, 5,800 hotel rooms by 2030 amid population growth

OMAN – The Sultanate of Oman is poised to deliver 62,800 new residential real estate units by 2030, with 5,500 expected to come to market in 2025 alone, aligning with the country’s strategic vision, according to new insights from leading real estate and advisory consultant Cavendish Maxwell.

The findings were revealed in the firm’s Oman real estate market performance report, published during Oman Design and Build Week, highlighting robust growth in both residential and hospitality sectors as part of Oman Vision 2040.

The report shows that Oman’s residential real estate inventory grew by 3.6% in 2024, with 38,400 new homes delivered, bringing the current supply to approximately 1.1 million units.

The majority of this supply is concentrated in Muscat, followed by the Al Batinah North and South regions, and Dhofar.

 Over the next five years, Oman is also set to add 5,800 hotel rooms, with 35 new hotels and resorts scheduled to open by 2030.

This expansion will increase the current hotel room inventory by around 25%, with more than half of the new rooms positioned in the upper upscale and luxury segments, reflecting a shift toward high-value tourism.

Oman Vision 2040 aims for the non-oil sectors, including real estate, infrastructure, hospitality, and tourism, to account for 90% of the economy by 2040.

The country’s population, currently around 5.3 million, is projected to reach 7.7 million by then, driven by growth in both Omani nationals and expatriates.

More than 80,000 new homes are forecast to be delivered between now and 2040 to accommodate this demographic expansion.

However, despite the strong pipeline of new properties, Cavendish Maxwell warns that Oman’s rapid population growth could lead to a shortfall in residential supply in the future.

The consultancy estimates that an additional 340,000 new homes would be required to sustain a healthy 90% occupancy rate, underscoring the need for proactive planning and investment to avoid housing shortages.

Oman’s tourism sector is also poised for steady growth, supported by government initiatives, rising investor confidence, and favorable demographic trends.

The expansion of hotel inventory and the development of Integrated Tourism Complexes (ITCs), which allow foreigners to own freehold property in designated areas, further enhance Oman’s appeal as a destination for both leisure and business travelers.

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