Oman's official index of residential prices was 24.6% higher in the second quarter of 2026 than a year earlier. The figure comes from the National Centre for Statistics and Information (NCSI). The rise is led by residential land, above all in Muscat. Finished apartments and villas have risen by less, and older mid-market homes in parts of Muscat have fallen in price.
So the answer to "are prices rising?" is yes on the index, yes in the established freehold communities, and no for generic stock in oversupplied districts. Here is what sits behind each.
What the price index shows
NCSI's index is built from Ministry of Housing and Urban Planning data. In the third quarter of 2025 it showed residential prices up 18.7% on the year. By the second quarter of 2026 the annual rise was 24.6%, with a 10.2% gain on the previous quarter alone.
| Segment | Q3 2025, year on year | Q2 2026, year on year |
|---|---|---|
| Residential, all | +18.7% | +24.6% |
| Residential land | +19.6% | +28.0% |
| Apartments | +22.4% | +17.2% |
| Villas | +16.5% | +10.8% |
Source: NCSI real estate price index (2018 = 100). The latest quarters are provisional, and earlier ones are revised from time to time.
Read the weights before the headline. The residential index has 67.9 points of weight, and land accounts for 52.9 of them, about four-fifths. Apartments account for 5.8 and villas for 7.0. So the 24.6% is mostly a land number.
The apartment and villa lines also jump around. The apartment line dropped 10.5% in the last quarter of 2025, then gained 11.7% in the first quarter of 2026. Judge them over a year, not a quarter.
Why prices are rising
Muscat land has been repriced
Residential land in Muscat was 40.6% higher in the second quarter of 2026 than a year before, the steepest rise and the highest index level of any governorate. Every new home starts with a plot, so dearer land tends to feed into new-build prices over the following years.
More money per deal, not more deals
Between January and August 2026 the value of sale contracts rose 14.5% to OMR 952.1 million. The number of contracts rose only 1.5%, and title deeds issued fell 14.2%. That is repricing, not a rush of buyers.
More households are borrowing
There were 21.8% more mortgage contracts over the same eight months, and Savills reported mortgage activity up 23.6% in the first quarter of 2026. Credit is spreading across ordinary buyers. It has also become dearer: on 17 September 2026 the Central Bank of Oman lifted its repo rate from 4.25% to 4.50%.
A growing population and a different expatriate mix
Oman had 5.4 million people in 2025, and the projection for 2040 is 7.7 million. The expatriate workforce shrank by about 1.2% in 2024 under Omanisation, but the households that remain skew towards higher earners, which concentrates demand in the better communities.
Clearer rules
Royal Decree 79/2025, the Real Estate Regulation Law, brought escrow, developer and broker rules under the housing ministry. Royal Decree 56/2026, in force since 18 May 2026, created a preliminary register for off-plan units and gave electronic title deeds full legal force. Neither widened where foreigners can own.
Buyers from the Gulf
Roughly one in three transactions in March 2026 involved a buyer from the UAE, against a 2025 average of 12%, according to a Ministry of Housing statement carried by AGBI. Residential land in Al Batinah North, the governorate that includes Sohar and the main route to the UAE, rose 24.8% in the second quarter alone.
Where prices are not rising
Muscat has roughly 87,000 vacant homes, about 20% of its housing stock. The 2020 census counted around 80,000. In lower and mid-grade stock that overhang has pushed prices down: by roughly 10 to 15% for apartments and 15 to 25% for villas in the worst-hit pockets, according to local research cited in the group's April 2026 report.
Rents show the same split. In Savills' first-quarter 2026 figures, a two-bedroom apartment in Al Mouj let for OMR 710 a month, up 3%. In Al Khuwair, an older central district, the figure was OMR 385, down 14%.
Forecasts for built property are modest. Savills' local agents expected capital values across the wider market to grow by only about 1.3% in 2026.
There are early signs of a pause, too. Muscat land was 2.0% lower in the second quarter than in the first. Tourism has had a weak year, with three- to five-star hotels recording 11.9% fewer guests between January and July 2026 and occupancy of 45.8%, down from 52.9%. Resort schemes whose numbers depend on visitors face the harder market.
What prices look like on the ground
Brokers' indicative 2026 ranges for Muscat start at roughly OMR 600 to 1,050 per sq m in affordable outer areas. Mid-market apartments are put at OMR 900 to 1,250, and the best coastal addresses, Al Mouj and Shatti Al Qurum among them, at OMR 2,200 to 3,600. These are third-party estimates, not official data.
In Sultan Haitham City, the Housing Minister said in February 2026 that investors pay about OMR 900 per sq m. Omani families buying with a subsidy pay about OMR 400.
For asking prices by project, with the date of each price list, use the Oman property price table. The market data page keeps the index figures up to date.
What this means if you are buying now
Do not buy a finished home because the national index rose 24.6%. That number is mostly land bought by Omani households. Test a specific home against what it lets for and what similar homes in the same community have sold for.
Favour established communities where rents can be checked. For off-plan homes, the new preliminary register helps, but the developer's delivery record, the service charge and the depth of the resale market still decide the outcome. If you are weighing Oman against its neighbour, see Oman vs Dubai.
Property values and rents can fall as well as rise, and off-plan projects can be delayed.
The bottom line
- Residential prices on Oman's official index were up 24.6% in the year to Q2 2026, but four-fifths of the index is land.
- Apartment prices were up 17.2% and villa prices 10.8% over the same period, with big quarterly swings.
- Sale values rose 14.5% in January to August 2026 while deal numbers rose 1.5%: repricing, not a boom.
- Muscat has about 87,000 vacant homes, and older mid-market stock has fallen 10 to 25% in the worst-hit pockets.
- Judge a freehold home on its rent, community and developer, not on the national index.
What to check before you reserve
- Recent rents for the same type of home in the same community.
- The date on the price list you are shown, and whether VAT is included.
- For off-plan, evidence that the unit is on the preliminary register, and the escrow account details.
- How two or three alternatives compare, using the comparison tool.
- What a rise in borrowing costs would do to your budget.
Frequently asked questions
Are property prices in Oman going up in 2026?
On the official index, yes: residential prices were 24.6% higher in the second quarter of 2026 than a year earlier. Land rose most. Apartments were up 17.2% and villas 10.8%.
Is Oman in a property bubble?
The data does not look like a speculative boom. Deal numbers rose only 1.5% in the first eight months of 2026 and title deeds fell 14.2%. Prices started low and have been pulled up mainly by land in Muscat, which has now started to pause.
Where are prices falling in Muscat?
In older lower and mid-grade stock in oversupplied districts. Local research puts the falls at roughly 10 to 15% for apartments and 15 to 25% for villas in the worst-hit pockets, against a backdrop of about 87,000 vacant homes.
Will prices keep rising?
Nobody can say. Watch the next quarterly index, the direction of Muscat land, interest rates, and how quickly tourism recovers.
