Qatar Real Estate News
$10bn worth real estate projects planned for launch in Qatar
Property sector in Qatar is likely to witness the launch of $10bn worth projects over the next few years, with the continuing demand-supply gap.
Currently there are at least 18,000 residential and commercial buildings under construction in Qatar. Out of the 160 towers proposed for launch by 2022, at least 13 will be ready by 2013.
The latest bulletin issued by Real Estate Registration Department with the Ministry of Justice, reveals that the size and values of real estate transactions have deteriorated considerably. The transactions during the week 19th to 22nd December, fell by 24percent, in comparison to previous week.
The investment in real estate sector this year will be largely focused on mixed-use commercial buildings. Nearly $35.5bn worth projects are likely to be launched by 2015, which constitutes 48percent of the total expenditure in the construction activity of the country during the period.
Despite huge gap in demand and supply, the announcement of new projects has led to steep hike in land value in major locations. At least 30 to 40 percent hike in prices has been noticed in areas such as Bin Dirham, Mansoura, Freij bin Mahmoud, Umm Ghwalina, Old Airport Area and Al Wakra. The prices are also on the rise in Muaither South, Muaither North and North Rayyan. The prices at Al Gharaffa, Umm Salal Ali, and Al Rayyan are now sky-high.
Owing to the decline in Qatari real estate market, Industry Qatar (IQ) has sold its stake in Fereej Real Estate Company. IQ said that its decision to sell its stake was in view of the development noticed in real estate sector. Meanwhile, Union Development Company (UDC), the developer behind Pearl Island project is holding discussions to issue 80million new shares to a state pension fund. The property investment arm of Qatar Sovereign Fund, Qatari Diar, is monitoring the overhaul of its strategic goal.
Posted on 3/1/2012