UAE Buyers Push Oman Home Sales Up 30% as Muscat and Sohar See a Rush

UAE property buyers spark a sudden shift into Oman

Since the Iran war began at the end of February, UAE property investors have driven a surge in Oman real estate activity that caught brokers and officials off guard. Within weeks the value of transactions in Oman rose by about a third to $550 million, according to Oman’s ministry of housing and urban development (MHUD). For buyers and investors watching the Gulf market closely, this is a clear signal that capital flows can reroute quickly when geopolitical risk changes the picture.

The numbers are striking. In March roughly one-third of all property deals in Oman were made by buyers from the UAE, compared with an average of 12% of monthly sales from UAE buyers in 2025. These shifts matter for anyone tracking housing prices, cross-border investment trends, and where Gulf capital will go next.

What the surge looks like on the ground

Real estate agents report that the influx is concentrated and specific. Key facts from market participants and MHUD include:

• Total recorded sales since late February: $550 million.
• Share of March transactions by UAE buyers: ~33%.
• 2025 monthly average share from UAE buyers: 12%.
• Typical purchases: one- to three-bedroom apartments.
• Top destinations for UAE buyers: Muscat first, Sohar second.

Mustafa Hussein, director of the Property Shop, says offers are still arriving from both Emirati nationals and expatriates based in the UAE. Brokers in Dubai report steady enquiries and completed deals, with a clear preference for smaller, readily let or resaleable units.

For investors this pattern has two immediate implications. First, demand is clustered around entry-level and mid-market apartments rather than luxury villas or large-scale off-plan projects. Second, the geographic focus is near the UAE border or in the capital where rental demand and services are strongest.

Why UAE buyers are shifting north into Oman

Several motivations are driving the move, and they matter differently for short-term speculators and long-term investors.

• Safety and risk management: Buyers tell brokers they see Oman as a safer place for capital deployment amid the regional strikes that followed the February escalation. Oman has experienced fewer direct strikes than some other GCC states.
• Price advantage: Buyers and brokers point out that properties in Oman are at least 25% cheaper than comparable units in the UAE. That gap has made switching attractive for those who want exposure to the Gulf without the higher entry cost of Dubai or Abu Dhabi.
• Portfolio rebalancing: Some investors are selling assets in the UAE to finance purchases in Oman. A retired UK civil servant quoted in reporting said he sold his Dubai apartment because he expects the UAE market to worsen and he preferred cheaper housing in Oman.

These drivers are straightforward, but the consequence is less predictable. An inflow of buyers seeking safer or cheaper options will lift transaction volumes. Whether prices follow depends on how persistent the buying is and what happens to broader sentiment in the UAE.

What this means for the UAE housing market

Activity in the UAE cooled sharply after the conflict began. Data provider Property Monitor recorded AED29 billion in transactions in the first three weeks of March, down from AED41 billion in the same period in February. That is a drop of almost 30%.

Market professionals cited in reporting expect the UAE market to suffer before it recovers. Imran Khan, CEO of Pixl Group and Invespy, said that after the current phase ends the market will probably go down further and bottom out before any recovery. That outlook suggests a window in which Oman and other nearby jurisdictions may absorb displaced capital and demand.

For investors with holdings in the UAE this raises a difficult trade-off:

• Hold through a slowdown in hopes of a cyclical recovery, or
• Sell and redeploy capital into cheaper markets such as Oman.

Each path carries costs: transaction costs, tax and regulatory considerations, financing terms, and the risk that the market dynamics reverse.

How Oman’s property market may respond

There are three ways the Oman market could evolve in response to the UAE inflows.

1. Short-term spike, limited price effect

• If most UAE buyers are opportunistic and focused on a narrow product band (1–3 bed apartments), the result may be a temporary rise in sales volumes without broad-based price inflation. That would favour quick-turn speculators and developers with ready stock.

2. Structural shift in demand

• If buyers decide to hold assets in Oman as longer-term investments, local prices in Muscat and Sohar could rise, squeezing the 25% price advantage that attracted buyers in the first place. This would benefit existing owners, but it would make entry harder for later investors.

3. Reversal if the Gulf stabilises

• If the conflict de-escalates and confidence returns to UAE markets, some capital could flow back, leaving Oman with elevated transaction volumes but limited long-term pricing impact.

We do not have public data yet on whether the flow is mostly speculative or long-term. What we do have is a clear pattern: an immediate 30% uplift in transaction value and a concentration of buyers from a single source market.

Practical advice for buyers and investors

For those considering Oman real estate as a destination for capital, practical steps matter. From our reporting and conversations with brokers these are sensible actions:

• Get local counsel on title and ownership rules. Legal frameworks and registration processes differ from the UAE.
• Check developer track records if buying off-plan. Confirm delivery timelines and financing safeguards.
• Understand financing and mortgage availability. Local lending rates and borrowing criteria can differ from UAE banks and international lenders.
• Factor in currency and repatriation rules. Plan for how you will move funds in and out and verify any exchange control limitations.
• Consider exit options.