DOHA: Speculators continue to be active in Qatar’s vibrant real estate market despite the lean summer season when most people are out of the country vacationing.
Real estate transactions last week (July 26 to 30) totalled QR1.42bn ($390m) as a result of heightened demand.
But most properties sold were land plots, not buildings, and included a tower in Al Sadd, sold for QR586.72m.
A plot of land in Umm Salal, in north of Doha, was sold for QR222m.
According to property market sources, most of such properties sold are those anticipated to be close to some upcoming development projects. Some plots may be for malls and others for housing projects.
One market expert said a new genre of investors has been entering the market and has the ability to tap bank loans in a big way.
It is this group of investors which is keeping the market excited. “These investors are able to access bank loans to trade in property,” said Ahmad Al Arouqi.
In remarks to this newspaper, the general manager of real estate company, Roots, said properties being bought and sold are not new.
“Investors are buying and selling properties for a profit. No new properties are coming on the market. The same ones are being bought and sold in a kind of a cycle,” he added.
End-users are out of the market and demand is because of development projects being launched in the country.
Investors are happy offloading properties for short yet quick profits, said Al Arouqi.
Most real estate pieces being sold and bought are land and there is hardly any demand for villas and apartments except in the Pearl-Qatar and Lusail.
Asked how investors were able to buy and sell properties when most people are overseas vacationing in the lean summer season, Al Arouqi said they may be trading through their men or agents.
He said real estate prices are still high because new properties are not coming on the market. “Prices will continue to be high until the year-end.”
Asked if spiralling rates were adversely impacting house rents, he replied in the affirmative and said rents had risen by almost 10 percent this year compared to last year.The Peninsula
