Qatar Real Estate News
Qatar realty market scores low in terms of transparency
The realty market in Qatar has faired poorly in terms of transparency in property sector, when compared to its counterparts such as Dubai, Bahrain, Abu Dhabi, Morocco, Saudi Arabia, Oman and Egypt, revealed a global transparency real estate report.
As per the report, Qatar has been scored low in the Middle East and North Africa (MENA) region. Dubai has been rated as the most transparent market in the region, followed by Bahrain and Abu Dhabi.
The report had categorized each market on the basis of five tiers ranging from Tier 1 for highly transparent market, down to Tier 5 for markets defined by the report as opaque. However, none of the countries in the MENA region have been able to make it to the top two slots.
Qatar was categorized under Tier4, which has been described as low transparency, as the real estate market in the country scored low on market fundamentals and regulations and legal sub indices. It is the historic and raw real estate data in Qatar, which is of concern that needs to be addressed. The report said that issues surrounding real estate regulations are still in their infancy.
The 'Real Estate Transparency Report 2008' released by Jones Lang LaSalle, the leading real estate investment and advisory firm, states that the average transparency score in MENA has been lower than in other regions such as America, Asia Pacific, and Europe. However, it confirmed that MENA region is showing fast improvement in transparency compared to other regions during the past few years.
The report considers 'transparent market' as one which is open and easy to carry on businesses, and the associated components such as transaction process, market fundamentals, performance measurements and the legal and regulatory framework.
The report said that although at a slower pace, the Tier 4 markets, such as Qatar, are steadily improving. These markets are looking for further improvement in their real estate transparency and have taken steps at an economic level. For instance, Egypt, although graded as Tier-4, has won the title of “World’s Top Performer” by World Bank in 2008. The country has also implemented several measures to liberalize its stock market, banking and finance sectors.
The report emphasizes that transparency would decrease risks and improve real estate sales activities. The most transparent realty markets are those that have reduced risk, greater certainty, high sales activities, low volatility, high foreign participation and strong corporate demand.
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