Real estate investors need to align with market reality

 06 Nov 2017 - 11:02

The Peninsula

Qatar’s leading developer SAK Holding Group has stressed the need for real estate owners and investors dealing realistically with current market challenges.

The market demands a realistic approach to the real estate cycle and the trend of correction of prices and rents in order to accommodate the challenges and reduce the risk of imbalances in the yields of real estate investment.

Any attempt to read the real estate market and determine its direction in the short term will be inaccurate and unfair, and the market is likely to maintain the average rental prices and real estate in the sale or purchase during the third quarter of this year in light of the state of anticipation among developers, investors Real estate leaders.

The Group’s Market Watch Office, which monitors the movement and performance of the real estate market, noted that the real estate cycle in Qatar is all likely to stabilise in the coming months.

There is positive shifts in the economy as a direct result of the success of alternative plans and strategies adopted by the state following the unjust blockade waged by neighbouring countries.

The diversification plans that Qatar had already embarked on have led to a qualitative shift in the country’s basic economic structure, including the various sectors of the business environment,
the food and consumer industries, the retail sector and the complementary industry, which put the real estate sector and construction activity in front of its responsibilities in keeping up with the needs of this transformation.

The high level of real estate glut in the residential real estate sector will make various sectors of the real estate sector vulnerable to competition; it creates unequal competition between new or developed housing units that offer competitive advantages for tenants, and among other ordinary units that may suffer from the problem of maintaining its population.

The report warned against the risk of widening the margin of price decline, which currently ranges between 10 and 30 percent, and up to 40 percent in some types of real estate and other categories, especially in the values of real estate rents, and this is most evident in retail and office units.

The report added that any attempt to read the real estate market and determine its direction in the short term will be inaccurate and unfair, and the market is likely to maintain the average rental prices and real estate in the sale or purchase during the third quarter of this year in light of the state of anticipation among developers, investors Real estate leaders.

In contrast to the expectations of the siege countries, Qatar has increased liquidity in the construction and construction sector and increased the major public investments.

It has also injected funds to ensure the continuation of work on infrastructure projects, residential and industrial cities, major projects, and transportation projects such as Qatar Railways, new roads network and highways,

The Government’s interest in the real estate sector stems from its numerous contributions to the growth of various sectors and the development of the Qatari economy in general.

It has also contributed significantly to the growth of the financial sector and to the reduction of inflation. It has a vital role in the expansion plans of Qatar National Vision 2030.