The Omani government’s drive to improve transportation and energy infrastructure in Muscat has boosted the city’s commercial property market, a new report suggests.
Real estate firm, Cluttons said in a document published this week that ongoing work on Muscat’s roads and public transport systems has contributed to increases in commercial demand, with grade A office space now in particularly short supply.
The firm also said that rental values are likely to grow further as infrastructure improvements continue throughout the rest of 2014, mubasher.info reports. According to the document, the rises in demand will also extend beyond the office sector to include warehouse and industrial facilities. It is thought that these areas will be boosted by major investment in the Sultanate’s port.
While the outlook is largely positive at present, Cluttons has said that the hotel sector could eventually suffer if too many luxury facilities are developed.
The company’s regional boss, Philip Paul, however, said that doors could open for certain parts of the market. He was quoted by arabianbusiness.com as saying: “Given the expected oversupply of luxury high-end hotels, we see a significant opportunity for mid-range three and four star hotels to expand in Oman and this will present new development opportunities as the sector continues to mature.”
He went on to suggest that any diversification of the hotel market would likely provide a boost to the country’s growing reputation as one of the region’s holiday hotspots.
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