Rental yield in Muscat: what return does a property earn each year? (2026)

"If I buy an apartment in Muscat and rent it out, what return will I get each year?" Every investor asks this. There is no single number, but a simple calculation gives a sound estimate for any unit. This guide covers the formula, the costs and how areas differ.

Gross and net yield

• Gross yield = annual rent ÷ purchase price × 100
• Net yield = (annual rent − annual costs) ÷ (purchase price + buying costs) × 100

Net yield is always lower. Market sources usually put the gap at about 1.5–2 percentage points.

A worked example

Say you buy a two-bedroom in a waterfront community for OMR 120,000 and rent it at OMR 650 a month:

This is only an example; every community's service charge and every unit's rent differ. Ask for the unit's current service charge before you buy.

What do market figures say?

• Global Property Guide (last updated 2022) put gross yields on Muscat apartments at about 3.6–4.2%, for higher-priced units at the prices of that time.
• Hamptons International reported in 2026 that residential developments with full facilities are earning yields of about 9%, and that Integrated Tourism Complexes such as Al Mouj command rents roughly 10–15% higher than standalone properties.

The spread shows how much yield depends on the purchase price: smaller units with a lower entry price usually return a better percentage.

What lifts the yield?

• A sensible entry price: studios and one-bedrooms usually yield more than large units.
• An Integrated Tourism Complex (ITC): security, beach, marina and amenities attract foreign tenants.
• Proximity to offices and schools: areas near workplaces and international schools stay empty less.
• Furnishing: worth more for short stays and newly arrived expat tenants.
• Ready handover: an off-plan unit earns nothing until handover; factor that in.

Costs not to forget

• Annual service charge by square metre
• Tenancy registration fee with the municipality (3% of annual rent, usually paid by the landlord)
• Property management if you let from abroad (a percentage of rent; ask for the rate before signing)
• Maintenance, repairs and insurance
• Income tax from 2028, only for people whose total income exceeds OMR 42,000 a year

Long-term or short-term letting?

Annual lets give steady income with less work. Short-term holiday lets may earn more, but they need a tourism licence, professional management, and income swings in the hot summer months.

How R2LUX helps

For any unit you shortlist, we prepare a yield sheet with today's price, the current service charge and typical rents in that area, so you see the real number before you reserve. Figures in this article are approximate and are not a guarantee of income.