Sale and Mortgage Contracts in Oman in 2026: What Does Financing Activity Reveal?

An analysis of sale and mortgage contract data in the Sultanate of Oman during 2026 and what it could mean for buyers, investors, and developers.

When monitoring the real estate market, most people focus on selling prices. However, mortgage data can reveal an aspect that prices alone do not show: the extent of financing usage, the volume of credit linked to real estate assets, and changing buyer and institutional activity.

In the early months of 2026, official bulletins showed noticeable growth in the number and value of mortgage contracts compared to the same period in 2025, while sale contracts continued at active levels. What can we understand from this?

Figures Until the End of April 2026

According to the monthly statistical bulletin issued in May, the traded value of sale contracts reached approximately 439.6 million OMR from January to the end of April 2026, an increase of 7.6% over the same period in 2025. The number of sale contracts reached 22,272 contracts, an increase of 5.6%.

In contrast, the value of mortgage contracts reached approximately 501.4 million OMR during the same period, an increase of 19%, while the number of mortgage contracts rose to approximately 9,095 contracts, an increase of 27%.

Why Mortgage Growth Matters

Mortgages are typically associated with using a real estate asset as collateral for a financing commitment. Therefore, higher mortgage activity may reflect an expansion in real estate financing, financing restructurings, or other asset-related transactions.

For the housing market, the availability of financing and its terms directly affect buyers' ability to enter the market. Even if property prices stabilize, demand may rise or fall depending on borrowing costs, bank terms, and down payments.

Do Not Equate Mortgages with a New Purchase Deal

One analytical mistake is considering every mortgage contract a new home purchase transaction. Not every mortgage is tied to a recent sale deal; a property may be used to secure financing for various purposes. Therefore, comparing the number of mortgage contracts to sale contracts does not allow for calculating the exact percentage of buyers who used financing directly.

Nevertheless, the mortgage trend remains an important indicator of financial activity linked to the real estate sector.

Number Growth Outpacing Value

By the end of April, the number of mortgage contracts rose by 27% while the value increased by 19%. This means that the average value per contract may not have grown at the same pace, a detail worth monitoring.

However, calculating the "average mortgage" by dividing the total value by the number should be used with caution, as contracts vary widely in size and purpose and do not necessarily represent a uniform category of residential financing.

How Financing Affects Prices

When financing becomes available to a broader segment of buyers, effective demand for property can increase. In a market where prices are rising, buyers may use financing to access units that could not be purchased with cash.

Yet, the relationship is not one-way. Rising prices may increase the required financing volume, and changes in interest rates or credit terms may limit purchasing power even if underlying demand persists.

What This Means for the Buyer

A financed buyer needs to compare the property and the financing simultaneously. Getting bank approval is not enough; one must understand the cost of the loan over its lifetime, the down payment, insurance, any fees, and the ability to repay under different scenarios.

Sometimes, focusing on "the installment I can afford" leads to buying a property at a higher price than necessary. It is better to determine the fair value of the property first, then choose the appropriate financing for it.

What This Means for the Developer

Developers targeting individual buyers benefit from understanding clients' financing capacity. This is why we typically see partnerships and agreements between developers and financial institutions, especially in large residential projects.

The Ministry of Housing and Urban Planning has indicated in various events and projects that developers are cooperating with banks to provide financing solutions, a trend that helps bridge real estate supply with families' purchasing power.

What This Means for the Investor

Financial leverage can boost return on capital if investment moves in the right direction, but it also increases risks. A financed investor pays a fixed or semi-fixed cost while rental income may be variable.

Therefore, stress testing must be conducted: Can installments be borne if rent drops or the property remains vacant? What is the debt-to-asset value ratio? And what is the exit plan if the market changes?

What Do the First Half of 2026 Data Say?

With the release of data at the end of June, the picture became clearer. The traded value of mortgage contracts in the first half of 2026 reached approximately 740.2 million OMR, a slight decline of about 0.3% compared to the same period in 2025. In contrast, the number of mortgage contracts rose to 13,383 contracts, an increase of about 25.7%.

This divergence is the most important takeaway in the data: the number of contracts is rising strongly while the total value remains nearly flat. The direct implication is that the average value of a single mortgage contract decreased compared to the previous year, dropping from around 70,000 OMR to about 55,000 OMR. In other words, growth came from a larger number of smaller financing operations rather than massive financing deals.

Meanwhile, sale contracts moved in the opposite direction: their value reached 688 million OMR with a 12.2% increase, and their number reached 34,017 contracts with a 6.9% increase. Here, value grew faster than volume, meaning the average transaction value increased.

Monitoring these indicators quarter by quarter is better than basing conclusions on a single month.

Conclusion

Data from 2026 indicate that financing is an active part of Oman's real estate landscape, with growth in mortgage contracts alongside ongoing sale transactions. However, this does not automatically mean a boom in financed home purchases, given the multifaceted nature of mortgages.

For buyers, the message is clear: property value and financing terms are decisions that must be analyzed together. For investors and developers, tracking financing helps understand the market's ability to translate real estate interest into actual transactions.

What These Numbers Do Not Tell Us

Aggregate figures alone do not clarify borrowers' average income, the loan-to-value ratio, actual interest rates per contract, or the percentage of mortgages linked to new home purchases. Therefore, avoiding converting them into precise conclusions about household behavior without additional data is essential.

Still, they remain useful as an indicator of the volume of financial activity tied to real estate. Buyers can use them as a signal to track bank offers and financing terms, while developers can use them to understand the importance of financing solutions within the sales process. Most importantly, data reading should remain proportionate to what it actually measures.