Muscat – The Ministry of Housing and Urban Planning has introduced amendments to real estate service fees, aiming to enhance the investment climate, improve service efficiency, and provide added value for beneficiaries.

The changes impact 85 government services, including the streamlining and merging of 47 service fees, the cancellation of 11 fees, reductions in 8 service fees, and the introduction of 14 new services. These amendments reinforce transparency in service pricing and application.

Key amendments:

  • Lower real estate sales fees – Registration fees for sales contracts have been reduced from 2% to 1% for Omani individuals and companies, cutting real estate ownership costs by 50%.
  • Islamic Bank transactions – Fees for selling real estate through Islamic banks are now 0.5%, supporting tailored real estate financing solutions.
  • Mortgage registration fees – Capped at 0.5%, providing more flexible financing opportunities for real estate investors.

The revised fee structure aligns with the government’s broader strategy to attract investment and support the real estate sector. Notably, the policy allows for the reimbursement of amounts paid for changes in business activity type, offering financial relief to existing investors.

Additionally, the amendments include:

  • Adjustments to land use permit fees while exempting agricultural lands converted for non-investment purposes within government planning zones.
  • Revisions to agricultural land fees previously collected by the Ministry of Agriculture, Fisheries, and Water Resources.
  • Elimination of certain e-government service fees, promoting digital transformation and reducing financial burdens on citizens.

Support for specific groups

To make property ownership more accessible, the decision exempts several segments from real estate ownership fees, including:

  • Low-income earners (monthly income not exceeding RO 300).
  • Persons with disabilities.
  • Beneficiaries of the Family Income Scheme and the housing assistance programme.
  • Retirees with a monthly income below RO 300.

Enhanced regulation and transparency

The amendments also regulate fees for:

  • Real estate brokerage licences.
  • Real estate development services.
  • Real estate valuation professionals.
  • Services for real estate owners’ associations.
  • Pricing of official contract forms, applications, and maps issued by the ministry.

The ministry expects these amendments to increase beneficiary satisfaction to 90%, with clearer fee structures and simplified processes improving user experience.

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