Is Real Estate a Safe Investment During Wars? Insights from Oman Market

Wars, along with the geopolitical disruptions and global economic volatility they bring, create overlapping crises across various sectors, foremost among them the real estate sector, which has long been considered a safe haven for investment. This raises an important question for investors: does real estate investment maintain its appeal as a safe haven, or does it become a risky venture that could lead to financial losses?

In the Sultanate of Oman, this question takes on unique dimensions. While the Middle East is experiencing ongoing conflicts, Oman is simultaneously undergoing an ambitious economic transformation under Oman Vision 2040, which aims to diversify income sources and reduce reliance on oil. Despite its geographical proximity to areas of tension, Oman has maintained a policy of positive neutrality and stability, making it a safe haven for regional investments seeking a secure environment.

In this article by Imtilak Global, we shed light on the reality of real estate investment in Oman during turbulent times, exploring the opportunities and challenges awaiting smart investors.

Advantages of Real Estate Investment During Turbulent Times

Real estate investment has unique characteristics that make it an attractive option during crises and wars, serving as a safe haven for investors:

1. Protection Against Inflation

Real estate acts as a safeguard for savings, as it tends to maintain—and even increase—its value during periods of inflation and currency depreciation. During times of crisis and war, property becomes a reliable store of value, especially in relatively stable economies like Oman.

2. Stable Income

Rental properties—whether residential or commercial—provide a sense of security for investors by generating consistent income in local currency during times of economic uncertainty. This steady income can be a financial lifeline when other income sources decline, especially during major fluctuations in wartime.

3. Exceptional Buying Opportunities

Crises and wars sometimes create unique buying opportunities. Economic disruptions and sudden market changes can lead to temporary price drops and reduced competition, allowing investors with liquidity to acquire properties at attractive prices, with the potential for capital gains once the market recovers.

The Omani Real Estate Market Amid Global Challenges

Oman’s real estate sector has demonstrated remarkable resilience in the face of global economic storms in recent years, supported by strong internal growth drivers that have made it a compelling destination for ambitious investors.

Reports from the Central Bank of Oman and the National Centre for Statistics and Information indicate that the real estate market has continued to grow despite global challenges, including supply chain disruptions and geopolitical tensions. Total real estate transaction value reached approximately USD 8.77 billion in 2024, marking nearly 30% growth compared to the previous year.

Growth Drivers: Vision 2040 and Mega Projects

The secret behind this growth and resilience lies in major government-led projects, particularly Sultan Haitham City, a fully integrated smart city representing a qualitative leap in urban planning and expected to attract significant investments in the coming years.

Additionally, integrated residential neighborhood projects such as “Sorouh” aim to provide modern living environments with global standards for citizens and residents alike.

Special Economic Zones, such as the Duqm Special Economic Zone and Sohar Port—are also attracting massive industrial and logistics investments, which in turn drive real estate development.

Price Recovery and Positive Indicators

In 2025, prices began rising again. In the third quarter of 2025, the residential real estate price index increased by 18.7% year-on-year, with apartment prices rising by 22.4% and villas by 16.5%, according to official sector data.

This recovery reflects growing confidence in the market and genuine demand for housing units.

Omani bonds and sukuk have also seen improved credit ratings from international agencies such as Moody’s and Fitch, reinforcing macroeconomic stability and boosting investor confidence.

Smart Investment Strategies in Oman During Crises

To capitalize on opportunities and minimize risks in the Omani market during wars and crises, investors are advised to follow these strategies:

• Patience and Long-Term Vision

Real estate investment in Oman is not about quick speculation but a long-term bet. The country’s future outlook is promising, with expectations that economic gaps will narrow by 2040, alongside projected population growth to 7.7 million people.

• Seizing Opportunities in a Down Market

According to specialized reports, the current period, despite relative stagnation, offers one of the best opportunities for smart investors to acquire assets at competitive prices. Bank-repossessed properties or distressed sales can represent golden opportunities.

• Careful Property Selection

In exceptional circumstances such as wars, avoid buying any property solely due to a low price. Instead, focus on strategic locations (such as Muscat, Duqm, or upscale districts in the capital), ensure infrastructure and services are available, and assess future resale or rental potential.

• Focus on Promising Sectors

Opportunities are not limited to residential real estate. The logistics and industrial sectors are experiencing rapid growth, with net returns ranging between 7% and 9%, according to estimates from the Public Authority for Special Economic Zones.

The tourism sector in Salalah and Jabal Al Akhdar is also thriving, driven by the government’s focus on sustainable tourism, creating promising investment opportunities.

• Work with a Trusted Real Estate Advisor

A reliable real estate advisor is essential, especially during times of war and instability, to ensure legal compliance and verify fair property valuation before purchase.

• Monitor Regulatory Developments

There is a government trend toward expanding foreign ownership rights beyond integrated tourism complexes. Such developments could significantly boost demand and absorb excess supply, offering investors a competitive edge and greater security.

A Promising Future Outlook

The future holds positive prospects for Oman’s real estate sector. With continued implementation of major infrastructure projects (such as railway networks), expansion of the Duqm Special Economic Zone, and expected population growth, the market is moving toward greater balance and sustainability.

Invest with Confidence in Oman’s Real Estate Market with Imtilak Global

Real estate investment in Oman during wars and global crises is not a blind gamble, it is a strategic choice built on solid foundations. While the Middle East faces instability, Oman continues to build its future through a clear vision, supported by mega projects and strong political and economic stability, making it a safe haven for regional investments.

Imtilak Global accompanies you every step of the way, helping you turn your capital into a stable, growing asset over time. Book your free consultation today and let our experts guide you to the strongest investment opportunities in Oman’s real estate market.

Rest assured, your investment is in safe hands, even in the most challenging times.