New report says demand is outstripping supply, driving up rents at key mixed-use projects
Rental values at mixed-use developments in Oman are on the up as demand outstrips supply, Cluttons has said in a new report.
Its Q1 property market report for Oman said rents are rising at projects such as Muscat Hills and The Wave, both examples of integrated tourism complex (ITC) developments.
Cluttons said with more projects coming to market, the ITC residential sector was showing "increasing signs of activity".
Late last year saw the launch of Phase 2 of Muscat Hills, which consists of 80 townhouses and villas being sold off-plan, with strong initial purchaser interest, the Cluttons report said.
In addition, 2012 saw the start of preparatory earthworks for the Saraya Bandar Jissah ITC development at Qantab and the successful release of further villas and apartments at The Wave.
"The increased interest from potential purchasers in the secondary market at Integrated Tourism Complex (ITC) developments, seen by Cluttons residential team in the latter part of 2012, has started to translate into transactions," the report added.
The real estate firm said the rental market at Muscat Hills and The Wave also continued to strengthen, with evidence of increasing rental values as demand outstrips supply.
"After several challenging years following the impacts of the global financial crisis, there is evidence of growing strength and confidence in the ITC residential sector which is translating into a significant increase in developments," Cluttons said.
The sultanate's economy continues to perform well and recent government figures indicated that the national GDP grew by 13.2 percent during the first three quarters of 2012.
According to ratings agency Standard and Poor's, the government budget will remain in surplus for the next two years, although it is strongly reliant on sustained oil prices.
Cluttons said the country's retail trade sector was showing a "strong recovery following the impacts of the global financial downturn", with several new retail destinations either recently opened, under construction or at the planning stages.