29 Oct 2011 - Oman (Muscat)
I have just spent a few days researching the office market in Muscat, Oman. The market has seen some real ups and downs in the last five years. It has gone from about OMR 4-5 (US$10-13) per sq m per month to OMR 16 (US$41) per sq m per month and it is now back down to OMR 7-8 (US$18-21) per sq m per month.
Although more offices are being constructed, which has led to an oversupply of office space, much of this is for suites of 100-500 sq m. Corporations looking for larger chunks of space have very limited choice.
For some time there has been a shift away from the old CBD with developments in Ghubrah and Azaiba proving popular and new major developments at Airport Heights. To a certain extent this reflects similar movements in popular residential locations. This movement should not be surprising as the city is restricted by mountains to the south and west and the sea to east.
I attach a picture of the new Opera House. It really is an impressive building from the outside. As I was not invited to the gala opening I cannot comment on the interior...but knowing the Omanis I am sure it is equally impressive!