07 February 2013
Muscat: Expatriates in Oman have won the lion's share of the real-estate brokerage business in the Sultanate, something many observers equate with the skyrocketing prices of houses and flats leased here.
Up to 66 per cent of the real estate brokerage business in Muscat alone is controlled by expatriates, especially those from Arab countries, said Ahmed Al Balushi, a property owner.
The tenants of accommodations leased by these brokers are complaining about the sudden increases in rent in Muscat, without considering mortgage regulations made by the concerned authorities. Most landlords give their properties to real-estate brokers to run them as they please, for a fixed sum of money.
More than half of these brokers are employed at different full-time jobs, something that contravenes the labour law, said Naser Al Marooqi, a legal advisor. Citizens are demanding urgent intervention by the concerned authorities, requesting the establishment of a Real-Estate Market Authority to control rents in Oman.
Observers have noted that the price of land and the cost of construction materials and rented construction tools have doubled, leading to the skyrocketing prices of leases, which are almost double the rates of six years ago.
"A one-bedroom apartment in Al Khuwair used to be rented out for something between OMR200 and OMR250 in 2008. But now, the amount has shot up to anything between OMR350 and OMR400. In the case of new buildings, the rent is even higher," remarked Ahmed Al Harasi, a property dealer.
Jamal Al Mehrizi, a real-estate office owner, said expatriates working in the real-estate brokerage business should be penalised harshly if they don't have a licence for this work. Naseeb Al Hatmi, another property dealer, said that this booming real-estate brokerage industry should be Omanised as soon as possible.
The real-estate sector plays a key role in helping the Sultanate to achieve its vision for 2020 to diversify its economic base, so that it does not have to rely primarily on income from oil. The real-estate sector's contribution to the GDP was 10.2 per cent between 2003 and 2008 and is expected to increase by 10 per cent over the next five years.
Muscat: Expatriates in Oman have won the lion's share of the real-estate brokerage business in the Sultanate, something many observers equate with the skyrocketing prices of houses and flats leased here.
Up to 66 per cent of the real estate brokerage business in Muscat alone is controlled by expatriates, especially those from Arab countries, said Ahmed Al Balushi, a property owner.
The tenants of accommodations leased by these brokers are complaining about the sudden increases in rent in Muscat, without considering mortgage regulations made by the concerned authorities. Most landlords give their properties to real-estate brokers to run them as they please, for a fixed sum of money.
More than half of these brokers are employed at different full-time jobs, something that contravenes the labour law, said Naser Al Marooqi, a legal advisor. Citizens are demanding urgent intervention by the concerned authorities, requesting the establishment of a Real-Estate Market Authority to control rents in Oman.
Observers have noted that the price of land and the cost of construction materials and rented construction tools have doubled, leading to the skyrocketing prices of leases, which are almost double the rates of six years ago.
"A one-bedroom apartment in Al Khuwair used to be rented out for something between OMR200 and OMR250 in 2008. But now, the amount has shot up to anything between OMR350 and OMR400. In the case of new buildings, the rent is even higher," remarked Ahmed Al Harasi, a property dealer.
Jamal Al Mehrizi, a real-estate office owner, said expatriates working in the real-estate brokerage business should be penalised harshly if they don't have a licence for this work. Naseeb Al Hatmi, another property dealer, said that this booming real-estate brokerage industry should be Omanised as soon as possible.
The real-estate sector plays a key role in helping the Sultanate to achieve its vision for 2020 to diversify its economic base, so that it does not have to rely primarily on income from oil. The real-estate sector's contribution to the GDP was 10.2 per cent between 2003 and 2008 and is expected to increase by 10 per cent over the next five years.
© Times of Oman 2013
