Reading the headline
Oman’s Real Estate Price Index reached 121.9 points in the first quarter of 2026, according to the National Centre for Statistics and Information (NCSI). The index was 15.9% higher than in the first quarter of 2025 and 8.5% above the fourth quarter of 2025. Because the series uses 2018 as its base year at 100, the reading means the measured market price level stood 21.9% above that reference—not that every property in Oman rose by the same amount.
Residential prices led the movement
The residential sub-index rose to 117.8 points, recording growth of 17.6% year on year and 12.4% quarter on quarter. Residential land was the strongest contributor among the main residential components: its index reached 122.9, up 21.0% annually and 16.8% from the previous quarter. The most pronounced movement appeared in Muscat, where the residential-land index reached 156.5, an increase of 43.6% year on year and 29.5% quarter on quarter.
These figures underline why national averages need a local reading. Muscat’s land movement was materially stronger than the overall residential index, so it should not be treated as a proxy for every governorate, neighbourhood or type of home. Site characteristics, planning use, access, surrounding services and available supply can all shape pricing at the property level.
Apartments and villas moved differently
Residential apartments recorded an index level of 114.5. That represented a 4.4% annual rise and an 11.7% quarterly increase. Villas reached 109.1, up 9.0% from the same quarter a year earlier but down 3.6% from the preceding quarter. The contrast shows that annual and quarterly comparisons can tell different parts of the story. It also cautions against describing the residential market as one uniform segment.
Commercial property remained positive
The commercial real-estate index stood at 130.8, rising 10.5% year on year and 2.7% quarter on quarter. The annual direction was positive, but the latest quarterly pace was more moderate than in residential property. This distinction matters when reviewing mixed-use or commercial opportunities: a price index can indicate how recorded price levels are moving, but it does not on its own explain leasing activity, tenant demand or operating performance.
How to read the index responsibly
- Compare like with like. Use the same component, geography and time comparison before drawing a conclusion.
- Separate annual from quarterly change. A category can rise over twelve months while softening from the immediately preceding quarter, as villas did in Q1 2026.
- Look beneath the headline. Residential land, apartments, villas and commercial assets followed different paths, while Muscat stood out within residential land.
- Add property-level evidence. Unit size, specification, tenure, title, exact location, payment structure and ongoing costs remain essential when assessing a specific asset.
What the index does not measure
The Real Estate Price Index measures prices; it is not a measure of the number or total value of transactions. It also does not report rental income, occupancy, sales velocity, net yield or future returns. A price index should therefore be read alongside transaction statistics, rental evidence and the verified details of the relevant project. Q1 2026 gives a clear signal of upward price movement, led by residential land and particularly Muscat, but it is a historical quarterly reading rather than a forecast.
A clearer project conversation
Rikaz presents its projects with practical information on location, plans, specifications and availability. Explore the project pages or speak with our team to place market indicators in the right project context and compare verified details clearly. This article is for general market information and does not constitute financial or investment advice.
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Official sources
06/09/26
