Does Your Real Estate Investment Align with the National Vision?
Amidst the major economic transformations taking place in the Sultanate of Oman, real estate investment is no longer just a local decision; it has become an integral part of the Oman Vision 2040. The question every investor and developer must ask is: Are you prepared to capitalize on the developmental wave being led by the Omani government?
The Sultanate's real estate market has witnessed a remarkable surge, with the property price index recording a 17.3% growth in the third quarter of 2025 compared to the previous year. This growth is not random; it is a direct reflection of government efforts aimed at economic diversification, infrastructure development, and the creation of smart, future-ready cities.
In this blog post, Value Experts analyzes how major government projects are influencing property prices and how an accurate valuation can guide your investment toward sustainable value.
I. Smart and Sustainable Cities: The New Value Drivers
Massive government real estate projects act as "value magnets." They do not merely provide housing units; they create integrated environments for living, working, and investing.
1. Sultan Haitham City
Sultan Haitham City is a pioneering model for smart and sustainable cities. The project's impact on the market is twofold:
Increased Supply: It provides thousands of modern housing units, contributing to meeting the growing demand for contemporary and affordable housing for citizens and residents.
Uplift in Surrounding Land Value: The city acts as a new center of gravity, leading to an inevitable rise in the value of land and properties in adjacent areas, as investors seek to benefit from their proximity to this vital hub.
2. Major Logistics and Tourism Projects
Projects focusing on non-oil sectors directly influence commercial and industrial real estate:
Yiti Sustainable City Project: This project focuses on tourism and leisure, increasing the value of properties designated for tourism and hospitality use, and creating demand for luxury housing in the area.
Economic Cities (e.g., Khazaen): The development of logistics and industrial infrastructure in these cities enhances the value of industrial land and warehouses, making them promising investment opportunities for companies seeking regional expansion.
II. The "Sorouh" Initiative: Integrated Residential Development
The "Sorouh" (meaning 'Palaces' or 'Integrated Residential Communities') initiative, implemented by the Ministry of Housing and Urban Planning in collaboration with the private sector, reflects the government's commitment to providing integrated residential neighborhoods. This initiative, which includes 18 projects, ensures:
Social Stability: Providing high-quality housing for citizens.
Sustainable Growth: Developing new areas in a planned and studied manner, which mitigates unwarranted real estate inflation in central areas.
III. Accurate Valuation: Your Compass in a Rapidly Evolving Market
In light of this rapid development, accurate real estate valuation becomes the most critical tool for the investor. The growth spurred by government projects is not uniform, and determining the true value requires specialized expertise:
Fictitious Price Inflation:
Distinguishing between price increases driven by speculation and unrealistic expectations, and those supported by genuine added value to the project.Determining Future Returns:
Analyzing feasibility studies and forecasting rental yields and capitalization rates based on announced government development plans.Compliance and Financing Requirements:
Providing accredited and reliable valuation reports recognized by banks and financial institutions, facilitating access to required investment financing.
