Mistakes New Investors Make in the Omani Real Estate Market

The real estate market in Oman has witnessed significant growth in recent years, driven by the expansion of bank financing and the rising investment awareness among young buyers. Despite the abundance of opportunities, many new investors continue to make recurring mistakes that lead to financial losses or tie up their capital for years.

In this guide, we walk you step-by-step through the most common mistakes young investors make in Oman — and how to avoid them — using a practical approach based on property valuation, market data, and the expertise of certified valuers.

1) Entering the market without knowing the real value… 

Most young investors enter the market driven by urgency: “This opportunity won’t come again… prices will go up.”

But the reality in Oman is this:

Most losing deals happen because the property was priced incorrectly.

Why?

• Because bank valuations differ from market prices.

• Because some plots are sold at an “emotional price” rather than a logical one.

• Because certain areas may have active sales, but they are not positioned for real future appreciation.

How to avoid this mistake?

✔ Request an official property valuation report before taking any step.

✔ Ask for actual comparable sales, not just listed prices.

✔ Avoid buying based on “what people say.”

2) Investing in the wrong property… just because it’s cheap

A low price doesn’t always mean a good opportunity.

In the Omani market, some plots are priced low because of:

• Their distance from essential services

• Weak actual demand

• Delays in infrastructure development

• Or poor investment feasibility

Many young investors buy the “cheapest plot available”… only to find it remains stagnant for 5–7 years with no appreciation.

The solution:

✔ Don’t buy what’s cheap — buy what’s in demand.

✔ Focus on growth areas (locations that show active buying, construction, and real development momentum).

3) Ignoring bank financing requirements

Many properties in Oman fail to pass bank valuation due to issues with size, incomplete construction, or inflated prices.

The result? The investor gets stuck: “I bought it… and the bank refused to finance it!”

The solution:

✔ Verify the property’s eligibility for financing in advance.

✔ Consult the lender or a certified valuer about financing requirements.

✔ Don’t commit financially until the bank’s approval is confirmed.

4) Ignoring real returns and focusing only on price appreciation

Many young investors rely solely on the hope that prices will rise, but in the Omani market, rental yield is the real success factor. Some properties appreciate slowly yet generate strong income, while others may rise in value but produce no returns for years.

The solution:

✔ Calculate the rental yield before purchasing (7.5–8.5% is considered good).

✔ Don’t rely only on capital appreciation.

✔ Choose properties that generate income — not ones that sit idle.

5) Buying a property without inspection

Many “cheap” or older properties hide structural issues such as foundation and building framework problems, drainage, plumbing, cracks, poor insulation, and damaged electrical systems — and the cost of repairs often exceeds the price difference.

The solution:

✔ Request a professional building inspection before purchasing.

✔ Don’t rely on the seller’s or agent’s assurances.

 Omani market today is full of opportunities, especially for young investors. But success doesn’t go to those who enter first — it goes to those who enter the smartest way. 

The more common mistakes you avoid, the faster your path will be to building real real estate wealth — based on numbers and true valuations, not on guesses or emotions.