Introduction
Oman is quickly becoming a hotspot for real estate investment, especially with the emergence of sustainable development projects. A prime example is the eco-city in Muscat, offering luxury apartments, family villas, and branded residences. Known as The Sustainable City – Yiti, this development aspires to be the world’s largest eco-friendly community. The project features 1,657 modern apartments (studios and 1–3-bedroom units, including branded residences by Nikki Beach) and 300 villas (3–4 bedrooms). Let’s explore why this eco-city is particularly appealing for investors and the benefits of investing in sustainable development in Oman.
Premium Real Estate at the Heart of a Sustainable Community
A Wide Variety of Property Types
The investment project in Muscat combines several types of luxury real estate. Premium apartments cater to those who prefer an urban lifestyle, offering balconies, storage rooms, and built-in wardrobes. Families will appreciate spacious villas equipped with maid’s quarters, large living rooms, and private gardens. The branded Nikki Beach residences provide the luxury of a five-star resort combined with the comfort of a private home. This diversity allows investors to choose property tailored to different purposes, ranging from business rentals to personal residence in a resort-like environment.
Resort Infrastructure
The eco-city is designed as a self-sufficient community offering comprehensive infrastructure for living and recreation. Residents and tenants can enjoy a five-star hotel with a yacht marina, private beaches, pools, indoor and outdoor sports facilities, cycling paths, parks, a horse-riding club, restaurants, and shopping areas. For families, the complex includes dedicated social infrastructure, such as a childcare center and even a center catering to children with special needs. Thus, investing in this project ensures ownership of property in a location where all essentials—from leisure activities to everyday services—are within easy reach, significantly enhancing liquidity and rental attractiveness.
Sustainability: Ecology and Technology
Eco-Friendly Solutions
This sustainable eco-city emphasizes careful environmental management and resource efficiency. Solar panels installed in residential areas provide energy for communal spaces, helping residents lower utility costs. Electric vehicle charging stations throughout the complex address the increasing popularity of electric transportation. Additionally, a waste recycling and water treatment system minimizes the community’s environmental footprint. Thanks to solar power generation, residents can significantly reduce electricity bills and virtually eliminate maintenance fees for common areas, with renewable energy covering these costs.
Modern Technology and Smart Infrastructure
The smart-city concept permeates every aspect of the development. Homes are equipped with energy-efficient heating and cooling systems, smart lighting sensors, and climate control. An innovative research center called the SEE Lab is planned, where residents can participate in vertical farming initiatives and ecological innovation projects. The infrastructure will also include modern roads and public transport links connecting the eco-city directly to Muscat’s city center. These innovations not only reduce environmental impact but also enhance property value through convenience, efficiency, and connectivity.
High Rental Yields and Price Growth Prospects
Gross Rental Yields averaging ~7–8% in Muscat reflect strong investment attractiveness (source: World Bank, Numbeo, etc.).
Strong Rental Returns
A primary attraction of investing in The Sustainable City – Yiti is high rental yield potential. Muscat’s property market offers rental yields comparable or superior to regional peers, reaching approximately 7–8%. Popular areas in Muscat, such as the prestigious coastal community Al Mouj, have seen rental rates rise by 10–20% over the past 18 months. The unique resort status and innovative concept of Yiti Sustainable City can attract affluent renters, driving robust rental returns. Given Oman’s recent openness to foreign investment, competition remains lower than in neighboring UAE, further boosting profitability.
Property Appreciation and Capital Gains
The value of real estate in this sustainable eco-city is expected to rise steadily as the project progresses. The Sustainable City is part of a broader master-planned development in Yiti district, Muscat. As infrastructure matures and new phases of the project are completed, early-stage buyers are likely to witness appreciation. Another factor fueling price increases is limited market saturation, as Oman has only recently opened up to large-scale foreign investments, positioning early investors to achieve substantial capital gains.
Favorable Taxes and Residency Benefits
Buying real estate in Oman offers significant tax benefits, distinguishing it from most countries. There is only a 5% VAT on transactions and a registration fee of 3%, compared to 4% in Dubai and 5% in Saudi Arabia. Importantly, Oman imposes no property taxes beyond this, making it an attractive investment jurisdiction.
Moreover, investing in Integrated Tourism Complex (ITC) zones like Yiti grants foreign buyers the right to full property ownership. Additionally, investors obtain eligibility for a residency visa, allowing permanent residence in Oman, crucial for business professionals and expats. Such advantages, combined with high returns, make investing in Oman’s sustainable eco-city even more financially appealing.
Step-by-Step Guide to Buying Property in Oman
1. Select Property
Choose an apartment or villa within the eco-project. Properties in Integrated Tourism Complex (ITC) zones like Yiti allow foreign citizens freehold ownership. Ensure the chosen property aligns with your investment goals (personal residence, rental income, etc.).
2. Reserve the Property
Enter an initial reservation agreement (usually involving a 5–10% deposit) to confirm your intent and secure the property.
3. Legal Due Diligence
Conduct thorough legal verification of the property’s status, developer licenses, and government approvals to ensure a risk-free investment.
4. Sales Contract
Sign a comprehensive sales contract, outlining all terms and conditions between the buyer and the developer. Upon signing, you’ll typically pay the agreed initial installment or the full purchase price if the property is ready.
5. Payment and Property Registration
Payments are usually managed via escrow accounts, with funds released to the developer progressively as project milestones are met. Ownership registration occurs through the government’s real estate department, with a 3% registration fee and issuance of the official Title Deed.
5. Obtain Residency Visa
Upon receiving the Title Deed, investors qualify for a residency visa, further strengthening the investment’s value.
Conclusion
Investing in a sustainable eco-city in Oman represents an opportunity to be part of a unique project combining luxury real estate, environmental consciousness, and impressive financial returns. Government incentives, a growing property market, high rental yields, favorable tax conditions, and residency benefits make Oman an increasingly attractive investment destination. By following a structured investment approach and consulting local experts, you can secure reliable assets with promising growth prospects. Today, Oman truly emerges as the new destination for discerning international investors.
Contact us:
- Email: info@nevestate.com
- WhatsApp: +971 50 461 9022
Interesting Posts:
- Saudi Arabia’s Top 5 Mega-Projects Transforming the Real Estate Market
- UAE Golden Visa through Real Estate Investment: Conditions, Benefits, and Market Impact
- Capital Migration into GCC Real Estate Amid Global Changes
YouTube:
Subscribe to our YouTube channel, where we regularly post real estate video reviews and investment analyt
