Buying Freehold Properties in Oman: A Complete Guide

Oman has become a sought-after destination for expatriates and investors looking to own property in the region. Thanks to its freehold property laws, expats in Oman can now own properties in the designated areas. With Oman opening its real estate market to foreign investments, not only expatriates but any foreign investor can own property in newly developed locations, enjoy residency benefits, and make smart investments in a growing market. But where should you invest? What are the legal requirements? How can you benefit from this opportunity? Let’s break it down so you can make an informed and confident decision.

What is a Freehold Property in Oman?

Freehold properties in Oman are real estate assets that foreigners can fully own. Unlike leasehold properties, where ownership is temporary, freehold ownership grants buyers full control—allowing them to buy, sell, rent, or pass the property on to their heirs. These properties are located in designated investment zones, ensuring high-value returns and long-term security. With a stable economy and promising property appreciation, Oman’s real estate is an attractive choice for investors and homebuyers alike.

Best Freehold Areas in Oman

Oman has designated several key areas where expatriates can purchase freehold properties. These areas offer a mix of luxurious amenities, strategic locations, and high investment potential.

Luxury & Waterfront Living

• Al Mouj (The Wave) – A premier waterfront community offering luxury apartments, villas, a world-class marina, and a championship golf course.
• Barr Al Jissah – Exclusive seaside residences with breathtaking views and high-end villas.
• Al Sifah – A serene coastal escape featuring the Sifah Resort & Marina, perfect for holiday homes and short-term rentals. You can explore more about the location to prepare to invest in luxury apartments and villas.
• Yiti – A fast-developing area with upscale projects and eco-friendly residences, set to become a major investment hub.
• Qantab – A scenic beachside neighborhood, offering residential properties for sale, ideal for those looking for privacy and stunning natural surroundings.

Urban & Business Hubs 

• Muscat Hills – One of Oman’s first freehold communities, offering apartments, villas and commercial properties, ready to be invested in.
• Al Rusayl – A growing commercial and industrial hub attracting business investors.

Can Foreigners Buy Property in Oman?

Yes they can and it’s an excellent decision. Investing in Oman real estate comes with multiple benefits:

• Full Ownership: Expatriates can buy, sell, and rent their properties freely in designated areas.
• Residency Visa Benefits: Property ownership grants eligibility for a long-term residence visa. (for over 50-99 years)
• High Investment Returns: The demand for apartments in Muscat and villas in Salalah is growing, ensuring solid rental income.
• No Property Tax: Oman is one of the few tax-free property investment markets in the region. There is nothing better than no tax.

Diverse Investment Opportunities: Whether you’re looking for a retirement home, vacation property, or rental income, Oman’s market caters to all needs.

Why Should You Invest in a Freehold Property of Oman?

Economic Growth 

Oman isn’t just relying on its natural resources anymore. They’re actively building a diverse economy with a focus on tourism, logistics, and all sorts of exciting new ventures. This means more jobs for expats in Oman, more people, and naturally, a growing need for homes and businesses. It’s a recipe for a healthy real estate market.

Government’s Welcome to Investors

The Omani government is rolling out the red carpet for foreign investors. They’ve created special zones like Integrated Tourism Complexes (ITCs) where foreigners can easily buy property. Plus, they’re offering sweet perks like long-term residency visas for property owners. It’s like saying, “Come on in, the water’s warm!”

Increasing demand of Rental Properties

With so many expats and tourists around, the rental market in Oman is buzzing. This means you can potentially earn a solid income from your property, especially if it’s in a popular spot or a fancy ITC. It’s like having your investment pay you back while you’re not even there.

Infrastructure Upgrades

Oman is constantly improving its roads, airports, and public transport. This makes it easier to get around and makes properties in different areas even more attractive. It’s like the country is getting a makeover, and your investment gets to enjoy the benefits.

Connecting the World

Oman’s strategic location at the crossroads of trade routes between Asia, Europe, and Africa makes it an attractive hub for businesses and investors. This boosts demand for commercial properties and helps the economy grow. It’s like Oman is the center of the action, and your investment gets to be right in the middle of it all.

Where to begin for buying a freehold property in Oman?

1. Contact real estate agents: After being aware of the ITCs areas, connect with real estate agents who are specialized in Integrated Tourism Complexes (ITCs) properties. They can help you find suitable properties, guide you through the buying process, and connect you with legal and financial professionals. You can begin searching for freehold properties, real estate agents and individual sellers through Bayut.
2. Consult a lawyer: It’s highly recommended to hire a lawyer specializing in real estate transactions in Oman. They can review contracts, ensure all legal requirements are met, and protect your interests.

Documents that foreigners are required to present in order to buy a property:

• Copies of passport/ID
• For those employed in Oman, a copy of their labor card is also required.
• If the buyer is a legal entity (company), a copy of the commercial registration document is necessary.
• A declaration listing family members and their addresses.
• If applicable, a statement disclosing any properties already owned in Oman.

Additional documents required for female foreign buyers:

• A legal affidavit stating their social status (e.g., single, married, divorced).
• Copies of their father’s/husband’s passport/ID.
• A certificate of employment or, if not employed, a certificate confirming non-employment.
• A copy of their marriage certificate (if applicable).

3. Financing: You may be able to obtain a mortgage from a local or international bank to finance your property purchase. 
4. Sales agreement: Once you’ve found a property and completed your due diligence, you’ll sign a sales agreement with the seller. This outlines the terms of the sale, including the price, payment plan, and any conditions.  
5. Obtain necessary approvals: You’ll need to get approvals from the Ministry of Housing and Urban Planning, as well as any other relevant authorities.

6. Register the property: After the approvals are in place, the property will be registered in your name at the Land Registry. This officially makes you the owner.

Pay the remaining balance: Once the property is registered, you’ll make the final payment according to the agreed-upon schedule.

Mortgage for Buying Property in Oman

Let’s make buying freehold properties in Oman more convenient for you. There are several banks in Oman offering mortgage options to locals and foreigners for property purchases, including both local and international banks. Some of the local banks providing mortgages are Ahli Bank, National Bank of Oman (NBO), Bank Sohar, Bank Muscat, and Bank Dhofar. HSBC is an example of an international bank that also operates in Oman and offers mortgages.

For foreign nationals, mortgages can typically cover up to 80% of the property’s value. The maximum repayment period is usually 25 years. Interest rates are variable and depend on several factors. These include the borrower’s nationality, credit history, and the specific property being purchased. While rates can fluctuate, borrowers should anticipate a minimum interest rate of around 7%.

Things to Consider Before Buying Freehold Property

• Legal Requirements: Ensure that you meet all eligibility criteria for expat property ownership.
• Property Type: Choose from apartments, villa for sale in Muscat, or commercial properties based on your needs. See more listings at Bayut.
• Budget & Financing: Check mortgage options available for expatriates.

Location & Lifestyle: If you prefer city life, explore freehold properties in Muscat. For a relaxed coastal vibe, freehold properties in Salalah might be a better fit.

Final Thoughts

Investing in freehold properties for sale in Oman is an excellent opportunity for expats seeking a home or a profitable real estate venture. Whether you’re interested in apartments in Muscat, apartments in Salalah, or villas for sale in Muscat, Oman’s freehold zones offer fantastic choices. This is as real as it sounds. So, when you are ready to find your dream property, browse Bayut Oman for expert guidance and exclusive listings.