Residential real estate prices in Oman increased 6.2% in the second quarter, led by a surge in land values, according to government data, Invest-Gate reports.

The sultanate’s national statistics agency pegged the value of home sales at OMR 182.4 mn in the period.

Residential land prices powered ahead, rising 14.8% to OMR 128.6 mn, while apartment values slid 15.2% to OMR 19.2 mn, in addition, villa prices declined 6.2% to OMR 27.6 mn.

From the first quarter, the overall housing index climbed 3.2% as land prices gained 3.9% and apartments 1.7%, villas rose 1.6%, and other homes 1.1%.

Transaction volumes dropped 6.6% versus a year earlier. Land deals made up 87.6% of property trades versus 5.2% for apartments and 4.1% for villas.

The figures signal Oman’s real estate market is supported by buoyant demand for larger land plots even as apartment and villa sales cool slightly. Land speculation continues driving overall property inflation.