By A Staff Reporter - MUSCAT — The return of fresh liquidity in the market, thanks to the government’s heavy spending in the last 18 months, has given Oman’s pioneering freehold development a shot in the arm putting an end to a nearly two-year slowdown of the property market, a company’s senior official said. The $3 billion The Wave Muscat, jointly owned by the Government of Oman, National Investment Funds Company, and Dubai’s Majid Al Futaim Properties, is now reaping the benefits from a new liquidity in the country with investors snapping up properties and the positive sale booking is expected to continue this year.
Abdulla bin Khamis al Shidi, (pictured) Deputy CEO of The Wave Muscat, said the government’s prudent approach in its fiscal spending in 2009 and 2010 has been the turning point for the property market overriding a previous sale lull due to the recent global financial crisis. Oman has spent about $16 billion in 2009 on local infrastructure and other projects and this year the government has already signed contracts worth $11 billion of its $18.5 billion expenditure allocated for 2010 budget, according to Nation Economy Ministry statistics.
“In March this year, we have offered 168 properties off-plan and all of them have been sold. This clearly shows the high level of confidence our customers have in The Wave, Muscat supported by the high amount of liquidity available in the market,” Al Shidi, said. With the successful March sale whetting the property market’s appetite, The Wave, Muscat plans to offer more lucrative products to the market before the end of this year. This offer will include a mixture of villas, apartments and townhouses to take advantage of the revived investor confidence.
“The other success behind the March sales was that we offered high quality but efficient products which were priced to the availing market conditions to attract the interests of a cross section of buyers,” Al Shidi said. The Wave, Muscat has already sold approximately 1000 units and handed over nearly 500 homes so far. “About 55 per cent of the buyers of our properties are Omanis and 45 per cent are foreigners, mostly Europeans and Indians,” Al Shidi added.
The development plans to raise funds next month from private Omani institutional investors for the Kempinski Hotel whose construction is planned to start early next year. The design of the Fairmont Hotel, to be built next to the 18-hole Greg Norman Golf Course, is being finalized while a four-star hotel for corporate customers adjacent to the 400-berth Marina is in the design phase. Al Shidi said that the 9-hole golf course of the Greg Norman will be completed end of this year while the second 9-hole is scheduled to be finished in the fourth quarter of 2011. “We plan to host major golf tournaments here such as the PGA, the European and US tours,” Al Shidi said.
“Our world-class 400-berth marina is progressing at a rapid pace with the Eastern and Western arms completed and we anticipate the first stage to be completed by 2011. Today, we are providing our marina facilities to our partners Oman Sail in line with our shared vision of reviving Oman’s glorious maritime heritage.” Al Shidi added that The Wave Muscat project is scheduled to be completed in 2018 and expected to build about 4,000 properties by then. The full master planned development will also include commercial, retail and entertainment facilities making it a world-class development and a destination of choice for residents, local communities and tourists, The Wave, Muscat Deputy CEO concluded.