Oman unveils plan to transform Salalah into major property investment hub
New master plan aims to build 12,000 homes, green spaces, and infrastructure in coastal city
SALALAH, Oman (MNTV) — The Omani government has announced a sweeping new development initiative to position Salalah, the nation’s second-largest city, as a regional property investment hub.
The move is part of broader efforts under Oman Vision 2040 to diversify the economy and boost private sector participation in real estate, according to Omani media.
The “New Salalah Masterplan,” unveiled by the Ministry of Housing and Urban Planning, envisions the construction of 12,000 homes across four walkable neighborhoods over a 15-year period.
The development will span 7.3 square kilometers and accommodate up to 60,000 residents. A central component of the plan includes integrating 3.5 million square meters of open green spaces and 100,000 square meters for cultural and community amenities.
“This is not just a tourism city—it’s a city with unique potential for long-term residential and investment opportunities,” said Ibrahim Waili, Executive Director for the National Spatial Strategy.
“With its cooler climate, proximity to the sea, modern infrastructure, and strategic location, Salalah offers a compelling proposition to both regional and international investors”, he said.
Historically known for its lush landscapes and moderate weather during the summer monsoon season, Salalah has attracted visitors from across the Gulf and Europe.
The new masterplan aims to capitalize on this appeal by encouraging property ownership and expanding residential developments supported by state-led infrastructure investment.
The waterfront city is already equipped with a modern seaport and airport, making it logistically attractive.
According to officials, these existing assets significantly reduce perceived risks and enhance Salalah’s appeal for long-term real estate investment. Work on the New City Salalah waterfront project is expected to begin later this year.
The initiative forms part of Oman’s $85.7 billion (converted from OR33 billion) nationwide development pipeline. Government contributions will focus primarily on building core infrastructure such as roads, utilities, and a planned marina and canal network.
Private developers will be granted flexibility in land use to optimize returns, and foreign interest has already emerged. Waili cited one private residential project in which 50% of homeowners are from Poland, indicating growing international confidence in Salalah’s real estate market.
Oman’s Golden Visa program, which offers residency to foreign investors, is also expected to play a significant role in attracting property buyers to the city.
As the transformation unfolds, Salalah is poised to emerge not just as a summer retreat, but as a year-round residential and investment destination in the region.
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