“Integrated tourism” is a term used to describe the purchase of property by foreigners in Oman and the practice is increasing, according to Cluttons. Units in new Integrated Tourism Complexes that once had trouble attracting buyers are now starting to fill up as the country’s economy improves following hardships triggered by the international financial crisis. Oman’s GDP surged 13.2% in the first three quarters of 2012 and a government surplus is making it easy to invest in new projects and further improvement in the country’s infrastructure. For more on this continue reading the following article from Property Wire.
The real estate sector in Oman is being driven forward by increased government spending and increasing interest in integrated tourism developments, a new analysis of the market shows.
The latest quarterly property market report for Oman from Cluttons, the real estate specialist which has enjoyed a dedicated Middle Eastern presence since 1976, says that the economic outlook is boosting real estate.
It points out that recent government figures show that national GDP grew by 13.2% during the first three quarters of 2012. According to ratings agency Standard and Poor (S&P), the government budget will remain in surplus for the next two years, although it is strongly reliant on sustained oil prices.
Government spending on development and infrastructure projects during the eighth Five Year Plan covering 2011 to 2015 which is part of a long term development strategy set out in the Vision 2020 programme, will now amount to RO16 million compared with the initial projection of RO12.1 billion. It will include a 45% rise in expenditure on housing, from RO323 million to RO469 million during 2013.
With the economy performing well and evidence of growing market confidence, new Integrated Tourism Complex (ITC) developments are coming to the market as the residential sector shows increasing signs of activity.
The fourth quarter of 2012 saw the launch of Phase 2 of Muscat Hills, which consists of 80 town houses and villas being sold off plan, with strong initial purchaser interest. In addition, 2012 saw the start of preparatory earthworks for the Saraya Bandar Jissah ITC development at Qantab and the successful release of further villas and apartments at The Wave.
The increased interest from potential purchasers in the secondary market at Integrated Tourism Complex (ITC) developments, seen by Cluttons residential team in the latter part of 2012, has started to translate into transactions.
Meanwhile the rental market at Muscat Hills and The Wave also continues to strengthen, with evidence of increasing rental values as demand outstrips supply, the report says. ‘After several challenging years following the impacts of the global financial crisis, there is evidence of growing strength and confidence in the ITC residential sector which is translating into a significant increase in developments,’ it explains.
This article was republished with permission from Property Wire.