Qatar Real Estate News
New supplies likely to push down rentals in Qatari market
Qatari residential market is likely to see decline in rentals, with another 15,000 new homes entering the market shortly, the real estate experts predicted in Qatar.
This, however, comes as good news to expatriate limited-income families, who are compelled to live in small-sized accommodations or shared villas. In fact, some landlords are still holding on their ready to lease properties, hoping that rentals may increase. But, it is likely that they will give in soon now, due to mounting debt burdens, and falling rentals, the experts said.
A real estate expert, who spoke to the media, said that the rental markets are likely to ease further considerable, with new supplies entering the market soon. The 15,000 new homes located in various areas might further add to supplies in the near future.
At present, there is continued demand for bachelor accommodation, with prices of rentals growing in the Industrial Area, where such stocks are concentrated.
According to another real estate expert, the days when the house rents suddenly increased are no longer here. The rental market seems to be stabilizing and easing inflationary pressures, he said.
The expert warned that owners who are still holding on to their ready to occupy properties, hoping for better rents, may be risking themselves, as rentals are unlikely to go up in the near future. In fact, the rentals are declining and the downward trend may continue for some time now.
Mohammed Umer, another real estate expert, said that the mounting supplies have led to significant decline in rentals, and this is likely to happen this year as well, as the supplies have been on the rise. Real estate prices are on the decline, and so are the rates of building materials.
The rates of real estate and building material, coupled with huge demand, had pushed up rental prices in the country during the days of acute housing shortage, said Jabor Al Mansouri, another expert.
However, situation has reversed and is unlikely to repeat, he emphasized. Barwa, with its affordable housing stocks, has also contributed largely in easing rentals in the market, he said.
Posted on 23/11/2011