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From top: Qatar University, Museum of Islamic Art, Doha
Skyline, Souq Waqif, The Pearl
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Key Insights On The Real Estate Sector Of Qatar
One of the world’s richest and most rapidly growing
countries, Qatar is home to a dynamic commercial real estate sector that should
be enjoying a boom. The outlook is positive; commercial real estate should grow
as natural gas exports flourish and as the government encourages economic diversification.
Qatar is also small enough that it should be easy for policymakers to control
the supply of new (and often prestigious) developments
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Construction along the Doha Corniche.
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| Qatar University |
Qatar’s landlords did not cope equally well with the
dislocations. In Doha, the retail sub-sector of Al-Khor and the office and
retail sub-sectors of Al-Wakra, rental yields generally fell (or moved
sideways) as landlords held on to their investments. By contrast, yields soared
in the office sub-sector of Al-Khor and the industrial sub-sectors of Al-Khor
and Al-Wakra. The implication is that prices and capital values slumped as
particular protagonists were forced to sell at very low prices.
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View of the Aspire Dome
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When we interviewed them in early 2010, our in-country
sources indicated that they expected conditions would improve fairly quickly.
The details that our sources provided to us when we interviewed them again in
mid-2010 vindicated their earlier confidence. Rents have been rising across the
board since the beginning of the year and are expected to continue to do so.
Looking forward, we envisage that rental yields will
converge. In practice, this means that they should fall in the industrial
sub-sectors of Al-Khor and Al-Wakra, but move sideways or rise elsewhere.
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Doha's skyline seen from the south side of Doha Bay, with
the Museum of Islamic Art in the foreground.
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| Doha Marina |
The Business and Investment in Qatar Forum, was held this year in new York, in the United State of
America from 6 to 7 April 2011, under the patronage and in presence of H.E
sheikh Hamad Bin Jassim Al Thani, Prime Minister and Minister of Foreign
Affairs of the state of Qatar.
This forum was organized, by the permanent committee for
organizing conference, and Qatari Businessmen Association as the main
organizing partner, in cooperation with Ministry of business and trade, Qatar
chamber of commerce, Ministry of energy and industry, Qatari businesswomen
association, National U.S-Arab Chamber of Commerce, U.S-Qatar Business council,
Bilateral US-Arab Chamber of Commerce.
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Source: Qatar Statistics Authority (QSA)
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The forum achieved an outstanding success in the business
capital of America New York City. Were it attracted more than 1000 businessmen
and representatives from big and medium American companies, which reflect the
importance of the Qatari market to the American business community, and the
importance of Qatar as a center for investment in the region.
Another field was Highlighted by H.E the prime minister and
minister of foreign affairs Sheikh Hamad Bin Jassim Al-Thani which is the
financial sector saying "it enjoys stability and being able to achieve
higher growth as it was not affected except in a limited way due to the
international financial crisis implications because of the following reticent
banking policy. In spite of that, Qatar has implemented three programmes as a
proactive step to support the banking sector and one of them is supporting a
capital base for the Qatari banks"
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| Doha Skyline at night |
Amid economic slowdown, Qatar's real estate market is
expected to continue its strong position regionally. Citing opportunity cost as
a key decision-maker for property investors in the region, Qatar will continue
to provide good quality investment opportunities in the medium to long term due
to its strong market fundamentals.
A growing economy and population built on the back of the
country's expanding oil and gas projects means demand will continue to remain
positive.
Interest from both GCC and expatriate investors continues to
be but we still expect a healthy outlook for high-end residential properties in
Qatar.
· The Pearl, West Bay and Lusail developments commanding the
highest sale prices for apartments
· West Bay and Al Sadd areas proving the most popular
fully-furnished apartments and demanding the highest monthly rents
o West Bay 2 Bedroom - QR 16,000+, 3 Bedroom - QR 24,000+
o Al Sadd 2 Bedroom - QR 9,000+, 3 Bedroom 11,000+
· West Bay and West Bay Lagoon recording highest villa
rental rates - QR 37,000 pcm
Commenting further, Asteco Qatar General Manager David
Oayda, said:
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| Khalifa Stadium |
"Market confidence is a key factor in the success of
real estate markets. Speculation has been rife in the period leading up to the
global slowdown; however we've not witnessed strong evidence to suggest an
overall softening in prices."
There is still demand for premium grade office
accommodation, particularly in Qatar's newly recognised central business
district, West Bay, where multinational companies, particularly within Qatar's
oil and gas industry look to establish offices there.
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Fanar Islamic Centre, Souq Waqif.
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With existing demand for high quality commercial and
residential rental properties, Asteco advise property investors to shift their
focus to best managing their property portfolio rather than aiming for resale
at this time. The company offers a full range of services such as sales,
leasing, property management, valuation, market research and feasibility
studies that aim to help customers look after the investment, whilst making it
work for them in an increasingly competitive market.
Oayda added, "Qatar's economy is sound and expected to
grow in 2009, providing business and employment opportunities for expatriates.
Coupled with competitive financing options to own developments here, we expect
the Qatar market to continue to provide good prospects for the year
ahead."
Doha
Doha
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| Aerial view of Doha |
Doha (Arabic: الدوحة,
ad-Dawḥa or ad-Dōḥa, literally: "the big tree") is the capital city
of the state of Qatar. Located on the Persian Gulf, it had a population of
998,651 in 2008, and is also one of the municipalities of Qatar. Doha is
Qatar's largest city, with over 80% of the nation's population residing in Doha
or its surrounding suburbs, and is also the economic centre of the country.
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| Doha International Airport |
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| Jet Ski rider, Doha Corniche |
