buy property now are real investors. People who buy properties now want to live in it,” Moosa said. NO MORE PRICE CORRECTIONS “The property prices peaked in 2008 and have moderately dropped since then,” observed Mohamed Ayjaz, General Manager of Hamptons International. “The phase of price correction that the market had experienced through 2009 is over. We don’t expect any more slashes in prices or rentals as is speculated. We expect the market to move forward. This is especially true to Muscat, the capital area,” he said. Commenting on the tourism properties, Ayjaz said, “Currently, in the capital area there is demand for more five star rated hotels. Supply in this sector is short of demand, he said. In the long term it is very encouraging with the government support, especially in the infrastructure development. The government expenditure is increasing in developing airports, ports and other infrastructure projects. There is going to be an increase in the standard of living and all sectors are going to see growth. Such growth will
Mohammed Ayjaz, General Manager, Hamptons International
Courtesy: Muriya Tourism
REAL ESTATE OVERVIEW
definitely be witnessed in the real estate sector as well,” he said. HOPES FOR FUTURE The property market has dropped considerably in terms of sales values and rental values from late 2008, noted Matthew Wright, development and industrial, Cluttons Oman. But now once again people are confident that the market is looking up and properties are once again receiving investment. There is activity in the sales market. Francis Selvaraj, head of professional services, Cluttons, observed that major banks are now providing loans at present to the housing sector. They are geared up to lend again. The issue facing Muscat, is that of oversupply of properties. There has been a lot of building activity in terms of office space supply. It might be absorbed at a low rate. People are still looking to development but they are more
Property market in Oman is maturing with experience 8
OER DOSSIER June 2010
Francis Selvaraj, Head of Professional Services, Cluttons realistic about their feasibility studies, he added. Residential rental rates are coming down, though there is no dramatic slump. There is nothing to worry about property market. It has a sound basis. “People are much more aware now than they were three years ago. If you are looking for a quick shortterm profit from investments in property market, then it is high risk. But people, who look at a long term investment, will be successful. I think property market in Oman is maturing with experience,” said Francis Selvaraj.