Commercial Real Estate - Oman | Statista Market Forecast

The Commercial Real Estate market market in Oman is expected to reach a value of US$84.27bn in 2024.
This projection indicates a potential annual growth rate (CAGR 2024-2029) of -0.40%, leading to a market volume of US$82.62bn by 2029.
When compared globally, the United States is anticipated to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Oman's commercial real estate market is experiencing a surge in demand from international investors due to its strategic location and stable economic environment.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Oman is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Commercial Real Estate market in Oman are shifting towards modern and high-quality properties that offer a range of amenities and facilities. Customers are increasingly looking for commercial spaces that are well-designed, energy-efficient, and technologically advanced. This shift in preferences is influenced by global trends in the commercial real estate industry, where modern and sustainable buildings are in high demand. Additionally, customers in Oman are also seeking properties that are centrally located and easily accessible, as well as those that provide flexible leasing options. Trends in the market indicate a growing demand for office spaces, retail spaces, and industrial properties in Oman. The expansion of businesses in various sectors, such as finance, technology, and retail, is driving the need for more office spaces. The growth of the tourism industry is also contributing to the demand for retail spaces, as shopping malls and retail outlets are being developed to cater to the increasing number of tourists. Furthermore, the development of industrial zones and free trade zones is attracting investments in the industrial sector, leading to a demand for industrial properties. Local special circumstances in Oman, such as government initiatives and regulations, are also playing a role in the development of the Commercial Real Estate market. The Omani government has implemented various measures to attract foreign investments and promote economic diversification. This includes the establishment of Special Economic Zones, which offer incentives and benefits to businesses operating within these zones. These initiatives are driving the demand for commercial properties in these designated areas. Underlying macroeconomic factors, such as economic growth and stability, are contributing to the development of the Commercial Real Estate market in Oman. The country's economy has been growing steadily, supported by various sectors such as oil and gas, tourism, and logistics. This economic growth is creating opportunities for businesses to expand and invest in commercial properties. Additionally, the stability of the Omani economy and its favorable business environment are attracting both local and international investors to the Commercial Real Estate market. In conclusion, the Commercial Real Estate market in Oman is experiencing growth and development due to shifting customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for modern and high-quality properties, the growth of various sectors, government initiatives, and economic stability are all contributing to the positive outlook for the Commercial Real Estate market in Oman.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.