New fund targets affordable housing in Oman

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Capitas Group International, the Jeddah-based consultancy, is working with the Global Omani Development and Investment Company (Glorei) to establish a $100 million fund for affordable housing projects in Oman.

The announcement is interesting for a couple of reasons. It spotlights a developer looking for new ways to raise capital, as well as the continued desire of builders to target low- and middle-income housing after years of building luxury villas.

Most of the attention for affordable housing in the region has focused on Saudi Arabia and Bahrain. But Oman is also facing a shortage of affordable homes.

About 73 per cent of Omanis are now living in urban areas, according to a recent report report by Cluttons, the property firm. At the same time new housing budgets have decreased by 25 to 30 per cent, driving competition for well-priced homes.

"Oman needs housing solutions that cater to a young, rapidly growing population," Naveed Siddiqui, chief executive of Capitas Group International, in a statement.

The GCC recently promised the Omani government a grant of $10 billion over the next 10 years for housing and infrastructure projects in the country.