Differences between the primary and secondary market in Oman – what to choose?

Oman is increasingly appearing on the radar of investors looking for a stable real estate market outside of Europe. Dynamic infrastructure development, Integrated Tourism Complex (ITC) projects, and the ability for foreigners to purchase property are causing interest to grow year by year.

One of the first questions our clients ask is: is it better to buy property in Oman from a developer (primary market), or choose a ready-made apartment from the secondary market?

What is the primary market in Oman?

The primary market involves purchasing property directly from a developer – this includes both completed units and projects under construction (so-called off-plan).

In Oman, many new investments are carried out as part of ITC (Integrated Tourism Complex) projects, which allow foreigners to purchase property on a freehold basis.

Advantages of the primary market

1. Modern standard and infrastructure – new investments offer contemporary architectural solutions, modern common areas, swimming pools, gyms, marinas, or beach access.
2. Choice – by buying at the construction stage, you can choose the floor, view, apartment layout, or finishing standard.
3. Staged payments (off-plan) – purchasing during construction often allows for payments to be spread out in stages, which lowers the capital entry threshold.
4. Potential for value appreciation – properties purchased at an early stage of investment can increase in value upon completion – especially in developing locations.

Risks of the primary market

• possibility of project delays,
• the need for a thorough analysis of the developer agreement,
• VAT on the first sale (depending on the type of property),
• no immediate rental income in the case of off-plan purchases.

Therefore, it is crucial to verify whether the project operates under current regulations and whether client funds are secured (e.g., through an escrow system).

What is the secondary market in Oman?

The secondary market involves purchasing property from a current owner. This is a solution for those who want to buy a ready-made unit and quickly start using or renting it out.

Advantages of the secondary market

1. Property ready for move-in or rent – you buy exactly what you see – you can assess the standard, view, neighborhood, and quality of common areas.
2. Faster transaction finalization – no construction risk or waiting for the investment to be handed over.
3. Tax benefits – in the case of residential properties, resale is often exempt from VAT, which can have a real impact on costs.

Disadvantages of the secondary market

• older technical standard,
• potential renovation costs,
• limited availability of attractive layouts and views.

Primary vs. secondary market in Oman – key differences

What to choose as a foreign investor?

Oman allows foreigners to purchase real estate in specific locations – primarily in ITC (Integrated Tourism Complex) projects. In practice, this means that both the primary and secondary markets in these zones are available to foreign investors.

When is the primary market a better choice?

• when you are investing long-term,
• when you care about modern standards and high growth potential,
• when you want to enter a project at an early price stage.

When is the secondary market a better choice?

• when you care about quick rental and immediate cash flow,
• when you are buying a property for your own residence,
• when you prefer lower execution risk.

It is also worth remembering that investing in real estate in Oman can be linked to the possibility of obtaining long-term residency – details depend on current investment thresholds and regulations.

Costs of purchasing real estate in Oman – what should you keep in mind?

When planning an investment, you should consider:

• registration fees,
• administrative and legal costs,
• VAT (depending on the type and stage of the sale),
• service charges in ITC projects,
• rental management costs (if you are investing for rental purposes).

Tax differences between the first sale and the resale of a property can have a significant impact on the final profitability calculation.

Summary – which option to choose?

There is no single answer that is right for everyone.

• The primary market in Oman is a great option for investors looking for modern projects and value growth potential.
• The secondary market will work well for those who want to start renting quickly or avoid construction risks.

The most important thing is to match your choice to your investment goal, budget, and time horizon.