Muscat property prices hit by economic slowdown
Chairman of the Oman Real Estate Association says economic situation had a negative impact
The chairman of the Oman Real Estate Association has said that the current economic situation in the sultanate has led to a decline in property prices in some parts of Muscat.
In a report by the Oman Daily Observer, Mohammed al Busaidy said that the areas of Al Amerat, Seeb and Al Maabellah had seen decline in property values due to speculation and oversupply of land.
“The real estate sector is interconnected with other economic sectors; it slows down or booms depending on the status of the overall economy,” he said. “The economic situation has had a negative impact on employment and job generation both in the government and the private sectors, reducing demand for property in the capital area as fewer people are now willing to rent or buy properties.”
“Increasing municipal fee for tenancy agreements from 3% to 5% has also negatively affected the real estate sector,” he added.
However, the chairman also said that rentals for residential accommodation in full service areas remained unchanged, while the low-service areas registered a fall in rents.
Ahmed bin Haydar al Lawatti, owner of a real estate company, was quoted as saying that the increased supply of land and flats was the main reason for the fall of rents in residential areas, the report said. Furthermore, he pointed out that government and private establishments had laid off a number of expatriate employees, leading to an increase in supply in the market.
Despite this, al Lawatti said that he expected the real estate market to make a partial recovery due to the population growth and increase in investments in Muscat.
