Indians can now buy property in Oman, but here's the catch

 

 

Since 2006, Oman has gradually opened its real estate sector to foreigners under a tightly regulated framework. Through Integrated Tourism Complexes (ITCs) and usufruct rights, non-Omani, including Indians, can buy residential and commercial properties under specific conditions.

Where foreigners can invest

Indians and other foreign nationals can own property in Integrated Tourism Complexes (ITCs) and selected commercial buildings approved by the Ministry of Housing and Urban Planning (MOHUP). ITCs are master-planned communities that combine housing, commercial facilities, and tourism infrastructure. Ownership is granted through usufruct, a leasehold right of up to 99 years.

Buyers of undeveloped plots in ITCs must begin construction within four years, or risk repossession by the Ministry. Notable ITC projects include Al Mouj Muscat, Muscat Hills, Saraya Bandar Jissah, Jebel Sifah, and Salalah Beach Resort.

Property ownership outside ITCs

In 2020, Oman widened access by allowing usufruct rights in certain Muscat zones. Applicants must be at least 23 years old, reside in Oman for two years, and purchase property in multi-storey buildings of four floors or more.

Key restrictions include:

• Each buyer can own only one unit

• Foreigners cannot hold more than 40% of units in a building

• Nationals of one country cannot collectively hold more than 20%

• Minimum property values: OMR 45,000 in Muscat, OMR 35,000 elsewhere

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• Rights can be sold, inherited, or renewed for up to 99 years

Legal process and documentation

Foreign nationals must comply with detailed procedures, typically with the help of an Omani lawyer. Required documents include purchase agreements, title deeds, Ministry registration, proof of residence, financial capacity statements, and site-related permits.

Mortgages and financing

Banks such as Bank Muscat, National Bank of Oman, and Bank Dhofar offer limited mortgages to foreigners, subject to residency and income criteria. Loan terms can stretch up to 20 years, with interest rates from 3% to 7%.

Restrictions and policy purpose

Oman enforces strict zoning rules: foreigners cannot buy property in Musandam, Buraimi, Dhahirah, Wusta, Liwa, Shinas, Masirah, Jabal Akhdar, or Jabal Shams. Ownership is also barred near military bases, heritage sites, archaeological locations, and agricultural land.

The system aims to attract long-term foreign investment while supporting Oman’s economic diversification. By following models seen across the Gulf, the framework seeks to balance growth with national security and cultural preservation.