Rapid expansion in the hospitality sector in Oman has been described as "a beacon of growth in the market heading into 2017" by international real estate consultancy Cluttons.
The Cluttons Winter 2016/17 Property Market Outlook report for Muscat has revealed that significant growth in the Omani tourism sector is feeding a period of significant development in the four and five-star hotel market.
Over the next two years, hotels currently under construction will deliver a 50% increase in room supply to the premium segment of the market.
Head of Cluttons Oman Philip Paul said in a statement: “While the local residential and office markets are feeling the burden of economic challenges, Muscat remains a highly attractive tourist destination within the Gulf and investors have taken note.
"The significant increase in supply we're anticipating will result in a more competitive market from an operator perspective but will also provide an increase in choice for customers. We expect this will help to drive the continued growth in the tourism and hospitality sector, with other operators drawn in by the allure of a rapidly emerging market.
“Although we see significant opportunities within the hospitality sector, the outlook is less positive for the residential and office markets with a number of factors impacting performance.The volatility caused by low oil prices has had a knock on effect on the number of professionals working in the Sultanate; but redundancies have now spread well beyond the oil sector. This in turn has heavily impacted the demand for real estate.”
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