By Saud al Ghanboosi -
MUSCAT — A report by one of the leading firms specialised in the real estate consultancy revealed that the Omani real estate market is still suffering from the repercussions of the global financial crisis and instability.
In spite of all these factors, some positive signs appear in the long term as it is expected that the market will witness a slow recovery during the next few years, said Cluttons.
The price analysis in the rental housing units indicated a reduction in the tenants’ budget in a rate ranged between 25 to 30 per cent, compared with previous years in which rents of villas (four to five-bedroom ones) saw a decline during the first quarter of 2011 to reach about RO 1,100 per month for the villas located in the centre and west of Muscat.
Demand for villas has increased in some areas such as Bausher and Al Mawaleh due to their lower rentals.
Integrated complexes projects, such as The Wave and Muscat Hills enjoys a good demand in view of high quality and modern design.
The report touches some of the indicators which reflect the stability of housing units leasing market.
However, the company expected the values of rentals to go down in the short and medium term, especially with the introduction of new units of residential apartments in the market during the coming period.
In the long term, the market is expected to recover with a continued rate of growth in the Sultanate’s economy.
The report also highlighted the change in the orientation of tenants in recent years where their budget for specialised housing went down.
The market is witnessing a good growth with regard to the housing units available, but this does not necessarily mean that these units will meet the aspirations of the tenants in terms of quality and design.
With the changes experienced by the markets, real estate developers will need to consider the needs of tenants and to design buildings with a high degree of quality and latest designs.
Demand for affordable housing units has increased and the majority of these units are in Seeb in the five projects which comprise 346 villas.
The Sultanate has seen population growth in recent years, and about 73 per cent of the population lives in urban areas. Consequently, the increase in population calls for the need to develop residential units within reasonable prices.
Some developers have already responded to these developments, where a number of apartment complexes are under construction in those areas.
The opening of Muscat Expressway has contributed in providing easy access to the centre of the city.