Growth in demand to continue for top quality office space in Oman

Muscat: The growth in demand for top quality (Grade A) office space is expected to continue in Muscat, particularly due to their being a lack of supply in the market.
“Oman does not have enough office space in the Grade A category. Few buildings can be considered to be Grade A office space,” said Mehdi Borhani, chairman, Gulf Muscat United, which is developing iTower – a state-of-the-art smart building located in the 'New Downtown' Bausher area of Muscat, within close proximity to Muscat Grand Mall.
Borhani said that although there are several high class residential buildings meeting international standards, there remains a shortage of top quality commercial space in Muscat city.
There is still a demand for top quality office space, as investors from several countries are entering Oman with business ventures. “Several new companies were registered in Oman in the last two to three years, and these corporates need quality office space to start their operations. The stability of the country is also helping to attract businesses, which will helps to sustain economic growth,” added Borhani.
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Further, the recent initiatives undertaken by the government to attract private investment, including foreign direct investment for economic diversification, is also aiding demand for commercial property. With the Sultanate’s public-private partnership now starting to bear fruit, the demand for top quality office space by occupiers will continue to rise, and is focused on Grade A space.
However, he noted that with a drop in crude oil prices, the general market sentiment had undergone a slight change, though it did not affect the demand for office space.
Referring to the general trend in Muscat city, he said that several villas in posh residential areas have been converted into offices. However, this creates parking problems and other inconveniences for those people living in residential areas.
Citing his company’s experience, Borhani said that when iTower was launched in 2016, Gulf Muscat United could sell as many as 70 per cent of the office units on the first day of the launch. This has prompted the company to apply to further expand the building by another 12 units to 83 office units, with the permission of the Ministry of Housing.
iTower has 12 floors, which include three levels of basement parking for 120 cars, a ground floor and eight other floors.