(MENAFN - Muscat Daily) Property Market Review H2 2014 “ Oman
The first half of the year saw sustained demand across all sectors of the rental market and values in all space categories are now in excess of those achieved at the pre-market correction peak in 2008.
Apartment supply addition has been significant over the first half especially in the Ghala and Bausher areas. A constant demand from tenants relocating from the more traditional areas of Ruwi and MBD has ensured occupancy is attained. It is estimated that over 4000 residential apartments in the central areas from notable developments are likely to enter the market over the next 24 months.
The ITC Market
Integrated tourism complexes (ITCs) have firmly established themselves as the prime rental destinations for mid to high-level rental and purchase budgets.
Both Muscat Hills and The Wave Muscat are now well established housing communities and are showing gross yields in excess of ten per cent for those who bought in the pioneering stages.
Commercial Office Market
Less than one year ago there was still being reported an oversupply position for office space. This has changed to an alarming undersupply of graded commercial space. It is estimated that a space take up of over 40000 sq m occurred in the first half of the year a record level for the Muscat market.
It is estimated that there is an additional 152000 sq m of speculative space that will be completed by early 2016 and this planned supply appears sufficient to accommodate the additional anticipated demand over the next 4-5 years.
Rents in excess of US20 per sq m per month are now average for quality space in the more central location still making Muscat the least expensive in the Middle East for graded office space.
Source: Savills Property Market Review H2 2014 “ Oman<