Oman's property market positive despite oil price dip, says Cluttons executive

Business Monday 04/April/2016 23:40 PM
By: Times News Service
Oman's property market positive despite oil price dip, says Cluttons executive

Muscat: Oman's property market is looking positive even as the global oil price dip is pressuring the government and people to cut costs, officials from a leading chartered surveyors and property consultants, said.
“We are optimistic and are working with developers in Oman to materialise several high-quality properties. Despite the global downturn due to the oil price dip, we see a demand for high-quality properties in Oman,” Faisal Durrani, head of research at Cluttons, told the Times of Oman in an exclusive interview.
“There is always a demand for high-quality properties in Oman and to launch Taminat Complex, which falls in this certain category, is a perfect example for that,” Durrani added.
The Public Authority for Social Housing’s Taminat Complex, which will be ready by late this summer, is a high-quality residential apartments’ property with space for offices too.
“Residents of the Taminat complex will enjoy a variety of exceptional on-site facilities, including a communal swimming pool, separate children’s swimming pool, outdoor Jacuzzi and children’s play area with outdoor equipment. The complex also features walking, jogging tracks, a gymnasium and health club with sauna and steam baths, with separate facilities for men and women, a kids care zone and a sports hall,” Durrani said, adding that people now look for such kind of properties in Oman.
Philip Paul, the head of international property consultants in Oman, said that other than the new-generation property demand, there is also a rise in build-to-suit developments in Oman as occupiers seek a tailor made approach to commercial developments.
“Investments in the hospitality and tourism sectors by the government are promising. Several projects, including setting up new warehouses, are in the pipeline across Oman,” the Cluttons executive said, adding that for the last seven years Cluttons has grown in the GCC (Gulf Cooperation Council) market and is quite optimistic about its future in Oman too.
According to the Oxford Business Group’s latest report, Oman’s real estate sector has continued to grow in recent years, and despite the fall in oil prices, demand, particularly from the private sector, has helped fan development.
“Projects that target niches, such as high-end offices, units in integrated tourism complexes, shopping malls and gated communities are flourishing. The residential leasing market saw five consecutive quarters of stability to the second quarter of 2015, as steadily rising demand matched new projects coming into the market and the economy expanded at a steady pace,” the report added.
Meanwhile, talking about the ups and downs of rents depending on the market downturn and expatriates returning to home countries due to job losses, Paul said the global oil price dip did have an impact on the real-estate market, but however, well-maintained properties have not been affected.
Cluttons’ Muscat Winter Market report 2015-2016 said the volume of tenant requirements has continued to hold steady, with demand remaining centred on what is perceived to be high quality, well managed properties.
“While average rents may be dipping across many parts of the city, buildings that are managed well and maintained up to a high standard are highly sought and rents in such schemes is either holding steady or creeping upwards,” the report added.