As of early 2026, the 3 to 5 year outlook for housing prices and demand in Oman is cautiously positive, with expectations of moderate annual growth of 3% to 5% driven by continued supply shortages, Vision 2040 investments, and growing foreign investor interest in the affordable-luxury ITC segment.
The major development projects expected to shape Oman over the next 3 to 5 years include Sultan Haitham City (delivering thousands of homes in a smart-city format), New City Salalah (12,000 housing units in Dhofar), Al Khuwair Downtown (a $2.6 billion waterfront project with 4,000 homes), and continued expansion of Al Mouj Muscat and coastal resort ITCs.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Oman is oil price volatility, because a sustained drop in oil prices would reduce government revenues, slow infrastructure spending, and potentially trigger expatriate job losses that would dampen both buyer and renter demand.
