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The commercial property market in Muscat is growing with the demand for quality office spaces nearing a 'tipping point', according to a study by real estate agency Cluttons
Based on the findings of the Muscat Spring 2014 Commercial Market Outlook report released by Cluttons, Muscat's commercial property market is rising steadily due to an increase in investments made by the government in transportation and energy infrastructure. This has led to occupiers being drawn to quality office spaces and, consequently, the rent for Grade A office spaces will also rise in 2014.
Philip Paul, head of Cluttons in Oman, said, “At Beach One in Shatti Al Qurm, we have achieved 80 per cent occupancy since the building was brought to market two years ago, highlighting the depth of demand for Grade A office space. We have experienced a similarly quick pace of leases for offices at Saud Bahwan Plaza in Al Ghubrah.”
The Omani government is also investing heavily in the country, to upgrade its facilities and this has led to a higher demand for warehouse and industrial space, stated the report. For instance, the relocation of a freight container terminal from Port Sultan Qaboos to Sohar planned later in 2014 would mean that related businesses would want to set up offices closer to the new port.
Similarly, the hospitality and construction segments are expected to witness an upsurge. Nearly four to five hotels are going to be built in the next five years in Oman, and shopping malls are expected to expand by nearly 35 per cent in the next two years.
Paul added, “We expect to see developers increasingly focused on the creation of smaller neighbourhood malls with leasable areas in the region of 3,000 to 10,000 sq m. The first of these neighbourhood malls, Al Marsa Village, is set to open later this year at The Wave, with several more likely to follow.”