Dr. Khalfan al Shueili, Minister of Housing and Urban Planning, issued a ministerial decision 357/2020 regarding the controls of selling residential real estate units under the usufruct system to non-Omanis in multi-storey commercial and residential buildings, which was published in the Official Gazette.
The decision comes as part of the package to stimulate investment in the promising real estate sector to achieve specific growth rates that enhance the performance of related activities and achieve sustainable development.
Only land or real estate that are allocated for multi-story residential or commercial uses in some locations in the Governorate of Muscat in the wilayats of Bausher, Al Amerat, and Al Seeb. In the wilayat of Bausher, the places are Bausher (Area 1-3)- Al Khuwair (Area 2), Ghala Heights (1 and 2), Wattayah (1 and 2), and Misfah (Area 2).
In AL Amerat – Hashiya (Area 1), Mahajj (Area 1), Madinat al Nahdah (Area 2-5), Seeb (South Mawelah Area 5). Al Khoud (Area 2), Mabelah South (Area 7).
As per the decision, the percentage of purchase of units sold to the expatriates should not exceed 40% of the number of residential real estate units in the multi-story commercial residential buildings, and it does not exceed 20 percent for a single nationality of the allocated percentage.
The beneficiary must be not less than 23 years of age, must be a resident of over two years at the time of application.
The owner or the first-degree relative can own only one unit.
The owner can take benefit from the common or shared facilities in the building.
The owner will be allowed to sell the unit only after four years from the date of the purchase.
The property can be transferred to the legal heir in case of death.
The potential buyer can seek finance, including the mortgaging of the usufruct right from any financing of the project.
The building should have a minimum of four floors or above.
The number of rooms in each residential unit should have a minimum of two rooms, including facilities such as toilets and a kitchen.
The numbers of real estate units shall be far from the existing residential neighborhoods to preserve the privacy of the community and in line with the demographic composition.
The building should be not less than four years from the date of completion of construction work and only fully completed units can be sold.
The seller and buyer pay 3% each of the total for the registration of the unit.
The usufruct agreement is valid for 50 years, which can be renewed but should not exceed 99 years.\
The decision is based on the system of ownership of apartments and floors issued by Royal Decree 48/89, and the Land Registry System issued by Royal Decree 2/98, and the law prohibiting non-Omani ownership of land and real estate in some places issued by Royal Decree 29/2018, and the Royal Decree 93 / 2020 by amending the name of the Ministry of Housing to the Ministry of Housing and Urban Planning, defining its terms of reference, approving its organizational structure, and to the approval of the Ministry of Finance, and based on what the public interest requires, it is decided:
Article 1: It is applied in the matter of selling residential units under the usufruct system for non-Omanis in commercial residential multi-story buildings, with the attached regulations.
Article 2: The Minister of Housing and Urban Planning determines the sites for selling residential real estate units under the usufruct system for non-Omanis according to the approved planning standards.
Article Three: This decision shall be published in the Official Gazette and shall be enforced from the day following the date of its publication.
SOURCE: OMANOBSERVER