Qatar Real Estate News
Qatar to face shortage of mid-budget housing
The real estate sector in Qatar is likely to witness a shortage in supply of mid-class residential apartments. But rents for commercial buildings may stagnate at the current levels, reports Global Investment House.
The shortage of mid-income residential apartments was attributed to focus on more upper class projects by developers, which is likely to lead to fall in rentals and prices, the report said.
The market for mid-class residential apartments is likely to remain stable. The prices and rentals will remain the same during short to medium term, with potential growth in the longer term, the Global report said.
The growth in housing is dependent on population demographics and increased demand from younger population entering the job sector, the report added.
The Global report also said that a downward trend in upper class villas and apartments could also be expected, as the current delivery of new projects and units could result in over-supply at a higher rate than increased demand.
The rentals would therefore decline or stabilize at the current levels for short to medium term, although, this would depend on the economic performance and business activity, the report said.
With increase in business activity, new employment opportunities would be opened up, and thus re-location in such new high-class residential areas, it pointed out.
As per the report, the Qatari property market is now indicating stabilization and recovery is likely to happen by second of this year.
As for the office space, the Global report said that this sector will remain stable, as rentals will stagnate at the present levels in the short-term, particularly in the new business district.
Rentals in older business district may witness declines by up to 10 percent in the short-term, due to shifting or relocation of businesses to new prime locations. However, any demand-supply instability leading to increased demand, will exert further pressure on rentals in both segments during the years 2010 and 2011, the report concluded.
Posted on 10/1/2010
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