Muscat Bay, a development near the coastal town of Bandar Jissah between the impressive Hajar Mountains and the Gulf of Oman, is on track to become one of the most attractive property investment destinations in the GCC. Its unique location along one of the best prime beach areas in the Gulf, its upscale residential real estate offerings and the fact it is being built on freehold land makes it even more enticing.
The development, 15km southeast of Muscat and a 30-minute drive from Oman’s main international airport, is being constructed on a designated Integrated Tourism Complex (ITC) land area and will comprise residential properties, including waterfront, park and hilltop villages and duplex residences, a resort village and two hotels operated by Dubai’s Jumeirah Group, which is making its first foray into Oman.
Muscat Bay is being developed by Saraya Holding Oman, a branch of Jordanian real estate developer Saraya Holding, together with Oman Tourism Development Company, or Omran, a government-owned company mandated to drive the growth and development of the tourism sector, at a total investment of about $600 million (Dh2.2 billion).
Muscat Bay will consist of 260 residential units in phase one and 435 when completed, with one-, two- and three-bedroom residences ranging from 77m² to 355m². It will also have waterfront, parkland, lagoon island and hilltop villas with three to five bedrooms. Units start at around 80,000 rials (Dh763,310), which is quite competitive for residential property in an ITC by Omani standards and indicates a healthy yield for those intending to rent out their property. The first handovers are expected next month, while all phases are planned for a 2021 completion.
The project was launched as Saraya Bandar Jissah in 2014, but was rebranded as Muscat Bay this year to give it an international appeal. PW talked to Muscat Bay CEO Shaikh Hamood Sultan Saif Al Hosni on the project.
Tell us about the development’s timeline.
The residential handover of phase one will start in June and continue through September. The Jumeirah Resort Hotel is planned for handover by the end of the year. Phase two infrastructure works, on the other hand, are completed and construction is planned to start next year with final completion of phase two by 2021.
Why should investors buy there and not, for example, in Dubai or Qatar?
Oman is renowned for its unique lifestyle offerings with some of the most beautiful beaches and mountains in the Middle East. As an up-and-coming destination, it should also be considered a smart investment choice. Muscat Bay specifically offers high-quality residences, which tap into broad investment and lifestyle buyer needs that enables potential for strong capital growth and high rental yields, alongside multiple lifestyle benefits. The project is located in an ITC, which allows non-GCC citizens to buy freehold property and provides permanent residence visas to owners and their families. Muscat Bay also offers assured delivery time frames and handover to those who wish to invest in a sustainable real estate project.
What is your main market?
Our core focus is the local and GCC markets. But we have found that there is a European and Asian interest, especially from those who have had a connection with Oman and currently live here or have done so in the past.
How many units have been sold or reserved? What is buyer mix like with regards to nationality?
Approximately 40 per cent of phase one has been sold with 70 per cent of the buyers being Omani. The sales enquiries since the launch have escalated and there is now a waiting list for the one- and two-bedroom apartments.
At reported prices of between 80,000 rials and 1.9 million rials for residential property, what investment security do foreign buyers have in terms of title deeds, resale options, etc?
When expat buyers purchase freehold property, they automatically acquire residency rights for themselves and their immediate families. They will also receive the title deed after two to four months, allowing them to sell or lease their property as they wish. The property can also be inherited by the buyer’s next of kin.
Muscat Bay is very close to the popular Shangri-La Barr Al Jissah resort complex. Is there a threat of a concentration of luxury beach resorts in the Al Jissah area when Jumeirah opens its hotels?
With tourism booming in the Sultanate there is a demand for five-star luxury resorts. The current supply does not meet the demand for tourists visiting the country. We see the area as being a touristic hub – the new Arabian Riviera – with one of the finest stretches of coasts in the Gulf. Our neighbours and ourselves are working towards a common goal, which is to grow the tourism industry in Oman.
What is the size of overall investment in the Muscat Bay development?
The investment amounts to $600 million.
What will be the development’s impact on the local economy?
As a core part of the wider Omani community, Muscat Bay strives to make a positive difference through a range of social and environmental initiatives and creation of jobs for the local Qantab village. Once phase one of the project is complete, 800 employment opportunities will have been created. Also under discussion is job creation for the fishermen from Qantab village to supply fresh fish to neighbouring hotels.
