Business

Oman ranks 11th in global real estate investment return index

 
MUSCAT, AUG 8

Nomad Capitalist, a renowned global consulting firm specialising in offshore banking, tax optimisation, and citizenship planning, has released its first Real Estate Yield Index, placing the Sultanate of Oman in the 11th position globally. The ranking highlights the country's attractiveness as an investment destination and underscores its potential for lucrative real estate opportunities.

The Real Estate Yield Index evaluates various key factors to determine the investment potential of different countries' real estate markets. These factors include price-to-income ratio (25%), net rental income (37.5%), ability to afford loans (12.5%), purchase cost, real estate and subsequent sale (12.5%), and tax on rental income (12.5%).

The United Arab Emirates secured the top position globally, followed by Saudi Arabia at 9th, Qatar at 11th, and Oman also at 11th. The Index evaluates real estate markets in 103 countries, encompassing both developed and developing markets, to gauge the true value of international real estate.

Oman's strong performance in the index can be attributed to several factors. Firstly, the country offers attractive rental yields, providing investors with the potential for stable and significant returns on their real estate investments. The combination of high rental demand and favourable rental prices contributes to the overall appeal of Oman's real estate market.

Secondly, Oman boasts a favourable price-to-income ratio, which indicates the affordability of properties relative to the average income levels of its residents. This affordability factor is crucial for attracting both local and foreign investors, as it allows for a broader pool of potential buyers and tenants.

Furthermore, Oman's ease of doing business plays a significant role in its high ranking. The country has implemented reforms to streamline business processes, enhance transparency, and improve investor protection. These efforts have created a favorable business environment that encourages real estate investment and facilitates smoother transactions.

Oman's economic stability also contributes to its strong position in the global Real Estate Yield Index. The country boasts a diversified economy, driven by sectors such as oil and gas, tourism, logistics, and manufacturing. This economic diversification minimises the reliance on any single industry and enhances stability, making Oman an attractive destination for long-term real estate investments.