Qatar Real Estate News
Qatar to focus on realtors, next to banks
Qatar, was largely unaffected by the global downturn, given, its abundant energy wealth, may now move towards encouraging its real estate operators after bailing out its banks, experts comment.
The economy of Qatar is likely to grow 16 percent, given its new energy projects and its status as the world’s biggest producer of liquefied natural gas.
The government’s help for banks in 2009 was inclusive of $3.96bn in real estate loans off their books to spur lending. More direct help for real estate firms is necessary, as the construction boom is further fuelled by the slowdown in oil and gas income.
With several real estate projects nearing completion in Doha, prices were set to fall further, following an already steep fall last year, mounting further pressure on developers.
The Managing Director of International Bank of Qatar, George Nasra, said that the real estate sector is already oversupplied. The prices of houses have dropped by 30 percent and are seen falling by another 15 percent in 2010.
Government support will be discrete, in the form of equity investment or government take-up of rights issues, a banking source said.
A senior Analyst, Patrick Rahal, at The First Investor, said the government is already an equity investor through Qatari Diar, which is a major shareholder in several listed property firms.
Qatari Diar will own atleast 45 percent of the new Barwa group, established by Barwa Real Estate’s planned takeover of Qatar Real Estate Investments. He said the government will retain or delay supply to the market to support the sector.
The Managing Director at Jones Lang LaSalle, Blair Hagkull, said that the role by the government is really important, and that in Qatar, the government can play a larger role than in Dubai.
According to Senior Director at CB Richard Ellise, Mike Williams, the Qatari government has the ability to strengthen the property market, as it has enough money, and they are investing in infrastructure, which can help the construction sector going.
Posted on 1/2/2010