Buying A Property In Oman

One of the most pro-Western countries in the Gulf, the natural tourist hub of Oman is giving its glitzier cousin Dubai a run for its money in the freehold property race.

Overview

Oman, bordered by the Indian Ocean on the eastern extremity of the Arabian Peninsula and flanked by Saudi Arabia, Yemen and the UAE, is a little-known destination to most Britons. But the ancient kingdom is ever more likely to cross our radar ever since new ownership laws were ratified by Royal Decree in February 2006. The rules permit foreigners to purchase freehold properties in designated tourist areas. Developers opting for low-density projects with architectural styles sympathetic to the local heritage are those whose resorts are being green-lighted.

Those seeking out Oman will find 1,700km of unspoiled coastline and a plethora of landscapes to entice them. The nation is divided into three governates: Muscat, the capital, embraces regal forts and shallow sandy beaches and eschews neighbouring Emirates' bling; Dhofar, in the south of the country, has lush woodland and freshwater creeks; the rugged northern tip of Musandam attracts expats who enjoy a spot of bayside fishing and camping. Inland, the apricot-coloured mountains and steep canyons alternate with vast dunes, sabka (salt flats) and exotic wadis (riverbeds).

The property market, buoyed by the 2006 decree, has blossomed. In the designated tourist area to the northeast of Muscat, a one-bedroom apartment can be picked up for not much more than £100,000. Off-plan investments are said to have appreciated by approximately 50% since 2006. The pegging of the Omani Rial peg to the US dollar adds to investor confidence. The burgeoning tourism market - one million visitors annually and growing year on year - further underpins the belief that the property market will only increase in size and value over the coming decade or so.