For years, international property investors looking at the Gulf have focused primarily on Dubai. The reasons are obvious: a large expatriate population, strong rental demand, deep liquidity, extensive off-plan supply and a mature ecosystem of developers, agents and investors.
Oman has traditionally attracted far less attention.
That is beginning to change.
In 2026, Oman is increasingly being discussed as a potential emerging property market within the GCC. Transaction activity is rising, foreign investment remains significant, the government is pushing ahead with major urban development plans, and new masterplanned communities are creating investment opportunities at prices that are often lower than comparable properties in Dubai.
This does not mean Oman is about to become “the next Dubai”. The two markets are structurally different. Dubai is already a global real estate hub, while Oman remains smaller, less liquid and more selective for foreign buyers.
But that is precisely why Oman is becoming interesting. Emerging markets are attractive not because they already look like mature markets, but because investors believe they may develop into something larger over time.
Why investors are starting to look at Oman
The strongest argument for Oman is that its property market still appears to be at an earlier stage of internationalisation.
According to Savills, the total value of property transactions in Oman reached approximately $3.72 billion by the end of the first half of 2026, representing a 5.4% year-on-year increase. The number of property contracts rose by 12.2%, while foreign direct investment in the real estate sector reached approximately $1.57 billion by the end of Q1 2026.
The figures are still small compared with Dubai, but they show that activity is moving in the right direction.
Earlier in the year, Savills reported that transaction values reached approximately $1.76 billion in Q1 2026, up 18.4% year on year.
For investors, the important point is not simply that transaction volumes are rising. It is that Oman is developing from a relatively low base, which can create opportunities in specific locations before they become widely recognised by international buyers.
Oman is still tiny compared with Dubai
Any serious comparison needs perspective.
Dubai recorded approximately $68.6 billion in real estate transactions during Q1 2026 alone, according to the Dubai Land Department. Transaction value increased by 31% year on year, with more than 60,000 transactions recorded during the quarter.
That is many times larger than the entire Omani market.
This difference matters because liquidity is one of the most important characteristics of property investment. A larger market normally means more buyers, more tenants, more agents and more opportunities to exit an investment.
Dubai therefore remains far stronger in terms of liquidity and market depth.
Oman’s opportunity lies somewhere else: earlier entry, lower competition and the possibility of benefiting from future urban development.
Oman Vision 2040 is changing the investment story
The development of Oman’s real estate market is closely connected with the country’s broader economic strategy.
Oman Vision 2040 is the country’s long-term framework for economic and social development through 2040. Among its priorities are economic diversification, sustainable cities, private-sector growth and attracting investment.
Urban development is not a minor component of the plan.
The official Oman National Spatial Strategy sets out a 20-year framework for infrastructure, urban growth and economic development across all 11 governorates. The strategy is intended to coordinate government investment, land development and private-sector activity.
For property investors, this matters because real estate values are ultimately linked to what happens around the property: roads, jobs, schools, retail, population growth and transport connections.
Oman’s investment thesis is therefore closely tied to the creation of entirely new urban centres rather than simply building isolated apartment towers.
Sultan Haitham City is the clearest example
The most important example is Sultan Haitham City, a new city being developed west of Muscat.
According to the Ministry of Housing and Urban Planning, the project covers 14.8 square kilometres, is planned to contain around 20,000 homes and could eventually accommodate approximately 100,000 residents. The total project value is estimated at around $5.2 billion.
The city is planned around 18 neighbourhoods, with schools, healthcare, retail, business space, parks and other infrastructure integrated into the masterplan.
Early residential phases have already sold out, multiple neighbourhoods are under construction and the first residents are expected during 2026–2027. Full delivery is planned over a much longer period, extending towards 2045.
This kind of development is central to the emerging-market argument for Oman.
An investor buying early in Sultan Haitham City is not simply buying an apartment. They are effectively taking a view on whether an entirely new urban centre will become an established part of Muscat over the next decade or more.
If that happens successfully, early properties could benefit from infrastructure growth and increasing demand.
But this also introduces risk.
Why early-stage markets can outperform
Property investors often achieve their strongest capital gains when they buy before a location becomes fully established.
The principle is simple.
A property in a mature neighbourhood is priced according to existing infrastructure, rental demand and market reputation. A property in an emerging neighbourhood may be cheaper because much of that infrastructure does not yet exist.
If the district develops successfully, the difference between the original purchase price and the value of the completed neighbourhood can create capital appreciation.
That is one reason Oman can be attractive in 2026.
Some of the country’s largest developments are still relatively early in their lifecycle. International buyers are also far less active than in Dubai.
An investor may therefore be entering before the market becomes fully internationalised.
However, the same logic works in reverse. If infrastructure is delayed, demand disappoints or too much supply is built, expected capital appreciation may never materialise.
Emerging markets offer potential upside precisely because they also involve greater uncertainty.
Foreign ownership is opening the market — but remains regulated
Another important factor is foreign ownership.
International investors cannot simply purchase every property available in Oman. One of the main routes for foreign ownership is through licensed Integrated Tourism Complexes, or ITCs.
The official Real Estate Ownership Act for Integrated Tourism Complexes states that non-Omani individuals and companies may own land or constructed units in approved integrated tourism complexes for accommodation or investment purposes.
At the same time, Oman maintains restrictions on foreign ownership in certain areas, including specific governorates, islands, strategic locations and agricultural land.
This is a major difference from Dubai, where foreign buyers have access to a broad network of designated freehold zones.
For Oman to evolve into a larger international property market, the range of investable projects available to foreign buyers will be an important factor to watch.
Lower entry prices are part of the appeal
Another reason Oman is gaining attention is affordability.
International investors can still find selected entry-level properties around $100,000–150,000, particularly in smaller units, early-stage developments and some resale opportunities.
At around $150,000–200,000, the market becomes considerably more interesting, with more options among studios, one-bedroom apartments, new projects and secondary-market properties.
By contrast, the same budget in Dubai often places the investor near the lower end of the apartment market.
This does not automatically make Oman better.
A smaller Dubai studio can still outperform a larger Omani apartment if it has stronger rental demand and greater resale liquidity.
But lower entry prices give Oman an important advantage for investors who want exposure to Gulf property without committing several hundred thousand dollars to a single unit.
Oman offers more space for the money
In many Omani developments, investors can also obtain larger properties for the same budget than they would in Dubai.
That can make a difference for both rental demand and end-user appeal.
A buyer considering a compact Dubai studio may be able to acquire a substantially larger studio or even a small one-bedroom property in Oman for a similar amount.
However, square metres alone should never determine an investment decision.
The value of additional space depends on whether tenants and future buyers actually want to live in that location.
A 70-square-metre apartment in a weak location can still be a worse investment than a 35-square-metre studio in a highly liquid market.
Tourism could become a major property driver
Tourism is another part of the Oman investment case.
Unlike Dubai, which has already become one of the world’s most recognisable tourism destinations, Oman still has substantial scope to expand its international visitor economy.
The country offers coastline, mountains, desert landscapes and relatively low-density resorts. This gives it a different tourism proposition from the high-density urban model associated with Dubai.
Destinations such as Jebel Sifah, Muscat Bay, Al Mouj and coastal projects around Yiti are positioned partly around tourism and lifestyle demand.
If international tourism continues to grow, selected resort properties could benefit from increased occupancy and international buyer interest.
But investors should distinguish between a beautiful holiday destination and a strong property investment.
Tourism alone does not guarantee rental returns. Accessibility, hotel supply, seasonality, service charges and professional property management all affect actual investment performance.
Oman may appeal to investors looking beyond Dubai
Another factor supporting Oman is diversification.
Dubai has become the dominant property investment story in the GCC, and many international investors already have significant exposure to the UAE.
Oman offers a way to diversify within the Gulf rather than buying another property in the same market.
This can be especially relevant for investors who already own property in Dubai and are willing to accept lower liquidity in exchange for exposure to a different stage of the economic cycle.
Oman should therefore not necessarily be viewed as a replacement for Dubai. It can be viewed as a complement to Dubai.
The biggest weakness is still liquidity
The most important argument against Oman is straightforward: the resale market is much smaller.
An investor buying in Dubai can usually find a large network of brokers and potential buyers when they decide to sell.
In Oman, particularly within a newer project, the pool of potential buyers may be limited.
There is also another issue. During the construction phase, an investor trying to resell may have to compete directly with the developer, which can still offer brand-new units with attractive payment plans.
This makes short-term flipping much more difficult.
An investor considering Oman should therefore generally assume a longer holding period.
For someone who may need access to their capital within one or two years, Oman may not be the appropriate market.
Rental demand is more concentrated
Rental demand also requires careful analysis.
Savills reported that high-quality areas continued to perform relatively well in 2026. In Al Mouj, average monthly rents for two-bedroom apartments were approximately $1,845, while comparable properties in Muscat Hills averaged around $1,276 per month during Q1 2026.
This demonstrates that there is genuine rental demand in established areas.
But Oman does not have Dubai’s enormous expatriate tenant base.
Investors therefore need a clear answer to the question: Who will actually rent this property?
A successful rental property needs proximity to employment, tourism demand, schools, business districts or other reasons for tenants to choose the location.
Buying simply because an apartment is inexpensive is not enough.
Infrastructure is likely to determine the winners
One of the key features of an emerging property market is that different areas can produce dramatically different results.
If Oman continues to grow as expected, it is unlikely that every district will appreciate equally.
The strongest-performing areas are more likely to be those where several factors come together: government investment, transport links, employment, schools, retail, tourism and limited competing supply.
This is why major masterplanned developments deserve attention.
The Ministry of Housing and Urban Planning describes its current role as coordinating strategic masterplanning, development land, infrastructure and private investment across long-term urban projects.
For investors, the question is not merely whether Oman grows.
The more important question is where that growth will concentrate.
Is Oman comparable with Dubai 15 or 20 years ago?
This is a tempting comparison, but it should be treated cautiously.
Oman today does share some characteristics associated with earlier-stage Gulf property markets: relatively low international participation, new infrastructure, expanding foreign ownership opportunities and large masterplans.
But Oman is not trying to replicate Dubai exactly.
Its population, tourism strategy, urban density and economic structure are different.
Expecting Muscat to become another Dubai would therefore be a weak investment thesis.
The more realistic argument is that Oman could develop into a successful property market in its own right, with lower-density cities, resort projects and selective international investment.
Who should consider investing in Oman?
Oman is best suited to investors who have a relatively long investment horizon.
A buyer willing to hold a property for five to ten years is better positioned to benefit from the completion of infrastructure and the gradual development of new areas.
It can also suit investors looking for exposure to the GCC at a lower price point than many established Dubai communities.
Oman may be particularly interesting for somebody who already owns property elsewhere in the region and wants to diversify.
By contrast, investors who require maximum liquidity, immediate rental certainty or a short holding period may still be better served by Dubai.
What could make Oman a much bigger market?
Several developments would strengthen the emerging-market thesis significantly.
The first would be continued growth in foreign investment and transaction volumes.
The second would be successful delivery of major projects such as Sultan Haitham City.
The third would be further development of tourism and international connectivity.
The fourth would be an expansion in the range of high-quality projects that foreign investors can purchase.
Finally, the secondary market needs to deepen. A successful international property market requires not only developers selling new apartments, but also a liquid resale ecosystem.
If these elements continue to improve, Oman could become much more prominent among international GCC property investors.
What could go wrong?
Investors should also consider the downside.
New masterplanned districts can take far longer to mature than expected. Developers may deliver properties before the surrounding shops, schools and infrastructure are fully operational.
Too much new supply could also place pressure on rents.
International demand may grow more slowly than expected, limiting resale liquidity.
Regional economic conditions and energy markets remain relevant to Oman, even as the economy diversifies.
Most importantly, investors can still lose money by simply overpaying.
A growing market does not make every property a good investment.
So, is Oman the next emerging property market in the GCC?
Oman has many of the characteristics investors look for in an emerging property market: rising transaction activity, major infrastructure investment, new masterplanned cities, relatively affordable entry prices and increasing interest from foreign buyers.
The market is also benefiting from a long-term government strategy built around urban development and economic diversification.
But Oman is not yet a substitute for Dubai.
Dubai remains far larger, more liquid and easier for international investors to understand.
Oman’s opportunity lies precisely in the fact that it has not yet reached that level of maturity.
For investors with a long time horizon, selected properties in Oman may offer an attractive chance to enter a Gulf market while major urban development is still taking place.
For short-term investors, the lack of liquidity remains a significant disadvantage.
The most reasonable conclusion in 2026 is therefore that Oman is emerging as one of the GCC’s more interesting secondary property markets, but its success will depend on execution rather than hype.
If Sultan Haitham City and other major projects are delivered successfully, tourism continues to expand and foreign participation increases, Oman could look very different by the early 2030s.
That is the opportunity — and also the risk.