Oman to Add Thousands of New Homes and Hotel Rooms by 2030
Oman is laying down big plans for its real estate and tourism future. According to a new report by Cavendish Maxwell, the Sultanate is on track to deliver 62,800 new residential units by 2030, with 5,500 of them set to launch just this year. That’s part of a broader national vision to diversify the economy and accommodate a growing population.
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Residential Boom in Line With Vision 2040
The expansion in housing supports Oman Vision 2040, which aims to shift the economy away from oil dependency. With the population expected to grow from 5.3 million today to 7.7 million by 2040, the country is preparing to meet rising demand. Over 80,000 new homes are expected to come online between now and then.
But here’s the catch: Cavendish Maxwell warns that even with all this development, demand may still outpace supply. To maintain a healthy 90% occupancy rate, Oman would actually need around 340,000 new homes over the long term.
“Oman is undergoing a meaningful transformation,” said Khalil Al Zadjali, Head of Oman at Cavendish Maxwell. “But proactive planning will be key to avoiding future shortfalls.”
Where Are the New Homes?
In 2024 alone, Oman added 38,400 new residential units, a 3.6% increase. Muscat leads in terms of housing supply, followed by Al Batinah North and South, and Dhofar. Current occupancy rates are solid at 85.2% overall, with villas and Arabic houses slightly outperforming apartments.
Real Estate Spotlight: Integrated Tourism Complexes
One of the most exciting developments is around Integrated Tourism Complexes (ITCs), the only places where foreigners can own property in Oman. These ITCs are growing fast and offer competitive prices and returns.
Here’s how Oman stacks up:
- Apartment prices in ITCs: OMR800–1,100 per sq m
- Villa prices in ITCs: OMR750–1,000 per sq m
- Rental yields: 5–8%, comparable to other GCC markets
- Dubai apartment prices: 1,600–2,100 per sq m
- Abu Dhabi villas: 1,350–1,750 per sq m
For international investors looking for value, Oman is definitely worth a closer look.
Branded Residences Make a Splash
Oman is also getting a luxury upgrade with branded residences. Here are some key developments:
- La Vie by Tivoli: OMR1,300–1,500/sq m
- St. Regis by Marriott: OMR2,100–2,400/sq m
- Mandarin Oriental Residences: OMR2,400–2,600/sq m
These properties cater to premium buyers and offer world-class living experiences.
Hospitality Growth Matches Housing Push
It’s not just homes getting a boost, Oman’s hospitality sector is also expanding fast. The country plans to add 5,800 hotel rooms across 35 new properties by 2030, boosting total hotel inventory by around 25%. Over half of these rooms will fall into the Upscale to Luxury categories, signaling a pivot toward premium tourism.
Right now, Oman has around 270 hotels and resorts with 24,000 rooms. In 2024, 2.15 million guests stayed in Omani hotels, a 3.6% bump from the year before. Hotel revenues also climbed 6.1% to reach OMR243 million.
Rising Numbers at Airports and Resorts
Oman’s airports handled 14.5 million passengers in 2024, a 2.5% increase. Most travelers flew into Muscat (12.9 million), while Salalah drew 1.5 million passengers, showing its strength as a seasonal getaway.
Meanwhile, hotel occupancy rates improved by 2.4% on average, with midscale and upper midscale hotels seeing the biggest jumps. Average Daily Rates (ADR) reached OMR53.4, further proving the sector’s solid rebound post-pandemic.