Oman's residential leasing market buoyant, occupancy rising significantly

Muscat: Oman's residential leasing market is buoyant with occupancy significantly increasing in well-managed assets, according to an industry expert.

“This trend persists despite a decline in expatriate numbers compared to the beginning of the year,” Ihsan Kharouf, Head of Savills Oman, said in an exclusive interview with the Times of Oman.

“However, considering the major population influx last year, tenants are gradually transitioning from their initial quick-fix accommodations towards more suitable, longer-term homes,” he added.

He said this at the sidelines of the Oman Real Estate Expo which was held recently at the Oman Convention and Exhibition Centre.

“The real estate exhibition in Oman for 2024 has been the best I have ever seen in terms of attendance, number, and scale of exhibitors,' he said.

These exhibitions serve as a great barometer for the market, not just reflecting current market conditions but also indicating market confidence for the upcoming period. This is positive news for the market, as such confidence can be self-fulfilling, he further added.

“The office market continues its positive momentum from 2023, with Savills recording the best commercial leasing numbers in a decade,” Ihsan Kharouf said. “Meanwhile, there remains a delicate balance between supply and demand, with owners leveraging active market intelligence in pricing to ensure maximum occupancy,” he further added.

Elaborating on the retail sector, he said that it can be categorised into three main segments. Prime retail is performing strongly, with waiting lists even present. In contrast, secondary retail tenants maintain a strong negotiating position due to oversupply. Lastly, localised, community, or destination retail, actively managed in line with market demand, is performing well, with key money being exchanged to accommodate some tenants.

“It is evident that we are entering a dynamic period in the Omani market, especially with the launch of the Muscat Structure Plan and the announcement of numerous new projects in Muscat and other major cities. These developments will have a significant impact on the real estate landscape,” Ihsan Kharouf said.