The Sultanate of Oman is steadily moving toward a digital and sustainable future, where cities are no longer just residential clusters but vibrant hubs of intelligence and technology. In 2026, with the acceleration of smart government projects, a fundamental question arises for Oman’s ambitious youth: How will this technological revolution impact the value of surrounding real estate? This is a topic that has not yet been explored in depth, and in this "Value Experts" blog post, we will uncover the direct link between government innovation and real estate valuation.
Sultan Haitham City: An Icon of Smart Cities and Real Estate Impact
Sultan Haitham City (SHC) stands as a pioneering model for smart cities in Oman. Spanning 14.8 million square meters, it embodies a comprehensive vision for modern living. The city offers more than just housing; it provides a lifestyle that integrates work, leisure, and advanced services, targeting individuals and families seeking high quality of life, as well as entrepreneurs and investors .
Smart Technologies and Future Lifestyle:
Sultan Haitham City relies heavily on advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Smart Grids, and smart irrigation systems, all managed through a data-driven smart operation platform . These technologies aim to create a unique living environment:
Walkable City: Designed to be highly walkable, with 12 core attributes focused on improving individual lifestyle, promoting public health, and reducing car dependency .
Central Parks: The Central Park serves as the project’s heart, providing vast green spaces for recreation and relaxation .
Sustainability: The city emphasizes human-centric urbanism and sustainable architecture, making it a promising investment destination .
Direct Impact on Real Estate:
The presence of such a smart city directly influences surrounding properties. Real estate located within or near smart zones typically experiences an annual increase in market value . Oman’s Real Estate Price Index recorded a 15.9% increase in the first quarter of 2026 compared to the same period in 2025 , reflecting positive expectations tied to smart city projects.
Greater Muscat Structure Plan 2040: A Comprehensive Urban Transformation
In parallel with Sultan Haitham City, the Greater Muscat Structure Plan 2040 is set to enhance urban transformation in the capital. This plan is built on five key goals, including "Green Muscat" to boost sustainable green spaces and "Connected Muscat" to develop an integrated transport system featuring modern public transit and pedestrian/cycling paths .
AI Zone: A Driver for Real Estate Growth:
In a strategic move, the Special AI Zone in Muscat Governorate was announced in May 2026 . Specializing in future AI-based technologies, this zone will foster an integrated innovation ecosystem, attracting companies and talent, thereby increasing demand for residential and commercial real estate in its vicinity.
How Smart Technologies Affect Real Estate Valuation?
The link between smart government projects and real estate valuation is a direct result of these technologies' impact on quality of life and service efficiency:
Smart Grids (Electricity, Water): These help reduce utility bills and promote sustainable consumption, leading to lower property operating costs and higher net operating income, which ultimately increases capital value .
Smart Mobility (Public Transit, Paths): Improved accessibility and reduced congestion directly boost the value of land and properties near modern transit hubs and pedestrian walkways .
AI and IoT: These provide enhanced services, higher security, and efficient facility management, increasing property attractiveness and demand while enabling more accurate, data-driven valuations .
Sustainability and Green Spaces: Creating a healthy environment and better air quality raises property values in green and sustainable areas, attracting investors who prioritize quality of life .
