Qatar Real Estate News
Qatar property sector records setback in Q1 2010
The real estate market in Qatar recorded a slump during the first quarter of 2010, with constant excess supply in both residential and office sectors, said Engel & Volkers, a leading real estate brokerage firm.
The residential market in Qatar currently has excess supplies with little demand, said the Q1 report by the firm on Qatar’s real estate market.
As for the rental segment, a semi-furnished apartment attracts a rent of QR4000 for single bedroom units in less prime localities of Doha, while a double bedroom unit draws a rent of QR5000 and triple bedroom unit draws a rent of QR6000. Not much improvement in these figures is expected during the next six months. However, rents drawn for apartments in prime localities such as West Bay have remained stable, the report said.
The stand-alone villas have seen major drop in rents throughout the city. The prices for four bedroom villas in prime localities now starts at QR10,000, or even lesser, an official at Engel & Volkers said.
Although compound villas attract a rent of more than QR18,000 in localities such as Al Waab, the villas located away from the prime localities have been badly hit, as in such localities triple bedroom compound villas are available for rent of QR8,000, revealed Abbas Shafiei, Managing Director of the Company.
The residential market in Qatar has not witnessed much movement for the past 18 months. Probably, it is time for the government to step in to help, amidst tight lending criteria followed by the banks, Shafiei said.
For the office segment, 2010 is considered a tough year, as a sudden recovery is unlikely, said Mirco Maurer, Commercial Head at Engel & Vorkel.
Rent for office space in prime locations is QR240/sqm. A 5% downturn is expected during the next quarter, although few buildings may be able to maintain their price levels, Maurer said.
Also, with available of more office space in Doha during the coming months, a further 5% ‘bottoming out’ is likely.
The hotel market will see about 150 to 200 percent increase in visitor numbers entering Qatar. The retail market will continue to maintain stable rents, despite opening of new shops on The Pearl, and The Villagio, said Maurer.
However, things may actually begin favouring Qatar market, after it has bottomed out. There is already an increase in demand and activity being noticed, Shafiei, concluded.
Posted on 5/4/2010
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