Qatar Real Estate News
World Cup 2022 brings in huge positive impact on Qatar property market
The impact of the forthcoming 2022 World Cup is huge on Qatar real estate market, and will continue to be so, say analysts.
Although, some properties are still in oversupply, there has been general stabilization and moderate growth across office, residential, hotel and retail sectors. The property sector has been particularly boosted by the government investment on infrastructure and real estate. The Qatar World Cup has now further brought the world’s attention towards the State of Qatar.
According to Craig Mitchinson, Managing Director at Mirage International Property Consultants, several of the construction projects in Qatar that were suspended, have now been resumed after two or three years of stopping.
Mitchinson pointed out that at least ten towers on the vast manmade island, The Pearl, has been either re-started or are likely to resume again. He particularly pointed out to Lusail, the 35sq kms city along the northern Doha, as an example of renewed application of construction.
The infrastructure projects in the city are progressing in full swing, with several companies like Damac, going ahead with ground works, ready for their nine buildings in the Foxhills development. Even the major property services company, DTZ, is of the opinion that Qatar’s successful world cup bid has had a positive impact on real estate sector in Qatar. In its latest report, DTZ mentioned that this world cup bid has helped create several job opportunities, population growth and a strong demand for real estate assets.
Further, the September 2011 announcement about all public sector workers in Qatar receiving 60percent pay hikes is also thought to have had a positive impact on real estate market. The 60percent public sector growth creates better liquidity by offering access to funds, as there are high numbers of nationals interested in investing in local real estate market.
Mitchinson further explained that one of the results of unrest in the region has been the upsurge in residential purchases made by expats from other Arab regions. Majority of such professional Arabs, who have seen instability in their own home countries, are now looking for long-term settlement in Qatar, rather than renting.
However, looking at the market from commercial point of view, the impact has been minimum. Majority of companies that have re-located, have preferred to settle in the UAE, owing to lower accommodation and set-up costs.
Further, although the market is full of optimism, there are some nasty pitfalls too in the market. The Qatari developers should realize that the huge abundance of residential units and office space is making authorities re-think about what and how the developments are being built.
However, when quality developments are being built, they are making their asking prices, although there is oversupply in the market, due to poor quality units. Further, there is need to cater to professionals demanding improved accommodation.
Qatar will continue to see real estate development in Qatar. There will be price drops and increases, before Qatar attains the crowning glory of World Cup in 2022.
Posted on 1/2/2012