MUSCAT: There seems to be mixed reactions coming from the real estate market in the aftermath of the protests that have been rocking Oman.

Though some agents feel the protest did some harm to the real estate scene there are others who have not been affected by the same. But there is a slight hesitation among people when it comes to taking decisions regarding purchase or renting of property now.

With regard to residential property it is even more slippery now.
A real estate agent on the condition of anonymity said, “Lot of thinking goes behind a decision nowadays. The client seems to be wanting to be reassured that Oman is a safe haven and things will get back to normal”.

Some real estate agents admitted that they have witnessed a drop in their margins as well as the total volume of transactions during the last two months.

While Marianne Helme, head of Residential Lettings, Cluttons & Partners admits that people have adopted a wait and watch policy since they are wary.

However, Helme stressed that their business has not been affected drastically and they have managed to record a consistent growth akin to the past performance.

Another agent, who too did not wish to be named said, “As you know expatriates rent a large amount of property here in Oman so if they cease to arrive then building of new properties will slow. This will have a snowball effect not only on the property sector but across all consumable areas.

I think any protest or instability in a region has a negative effect especially when foreign investment is concerned”.

She also quoted an instance where a client of hers who had initially wished to invest in a property now refuses to do so because of safety concerns. Three of her expatriate clients who own property at a prominent property wish to sell them soon and go elsewhere. Another client who had bought a villa in Ghubra for RO200,000 has sold it for RO160,000 within a span of a year.

She says, “Our business has come down by 20-30 per cent” adding, “Problem also comes in the form of few landlords who do not bring down the cost of the property inspite of the dwindling trends and the property lies vacant for a long time. They (landlords) are adamant and argue that their stand is due to the increasing cost of living.”

She says the supply of residential property is outstripping the demand; the protests and hesitation of buyers have all resulted in a panic situation for them. She is hoping that the situation will improve in the coming months.

Talan of Quick Hands said that he knew of plenty of properties that were lying unoccupied for months and finally the landlords had to give in and brought down the rents.According to him though the rents have come down almost in all the areas yet Ghubra remains the most expensive followed by Al Khuwair and Seeb.

According to Fardan Alhamdani of Oman Homes the costs of villas have dropped whereas apartment costs are stable or increased slightly. Villas that had a rent of RO2,000 few months have come down to RO1,500 and some to even RO800.

According to him properties in Al Khuwair and Shatti Al Qurum demand the highest price. A similar looking two bedroom house that can be rented in RO280 in Al Hail costs RO400 in Al Khuwair.

Surprisingly, there was a rare case of increase in rent at Al Khuwair wherein the landlords took the liberty to hike the rents at their discretion. Sree, a tenant residing at Al Khuwair confirmed that there was a rent hike of RO100 for all the tenants who resided in his building.

Though the sudden hike did definitely pinch, he was ready to pay more provided the landlord covered the maintenance expenses. Four years had passed since he rented the particular apartment and the landlord has not bothered to paint the building even once. “It looks miserable from the outside,” he said.

It is estimated that the building, construction and real estate sector will contribute 10 per cent to the GDP as documented in the ‘Vision 2020’ of Oman. With the downward trends in the property market the road ahead looks bumpy but the optimists find it attainable.

The author is a freelance journalist based in Oman. The views expressed in the article are her own