Coastal freehold communities continue to deliver the strongest rental returns in the Sultanate, according to the latest Souqrealty rental tracker covering 1,240 active leases across Muscat and Dhofar.
Muscat: steady corporate demand
Two-bedroom furnished apartments in Al Mouj are achieving 850 to 1,150 OMR a month, translating to a gross yield of around 7.4% against current resale values. Demand is driven by corporate lets from energy, logistics and aviation tenants on two to three year contracts.
Salalah: seasonal but potent
Hawana Salalah benefits from an unusually strong Khareef season, with short-let occupancy above 80% between June and September. Annualised gross returns reached 9.1%, though owners should plan for a quieter October to February and budget for furnishing turnover.
From gross to net
- Service charges: typically 8 to 14 OMR per sqm per year in managed communities.
- Management fees: 8 to 12% of collected rent for full short-let operations.
- Void periods: assume three to five weeks a year on long lets.
- Maintenance reserve: budget 1% of property value annually.
Net yields after those deductions sit closer to 5.5% in Al Mouj and 7% in Hawana, still comfortably ahead of equivalent stock in downtown Muscat.
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