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Doha: The market for leasing homes in Qatar is likely to show strong signs of growth in 2013 and 2014 as major infrastructure projects get under way, according to EC Harris’ latest Property Market Outlook.
The report states that Qatar is also set for a hotel building boom, with 5,000 new hotel rooms planned each year in the run-up to the 2022 FIFA World Cup.
Terry Tommason, head of Property and Social Infrastructure Middle East at EC Harris said: “The market for residential property sales in the emirate is likely to remain flat, though, and no major new office development is planned due to the continuing overhang of space from the last commercial boom.”
Analysis of other markets shows that the Middle East will be one of a number of hot spots for financing alongside other markets where GDP is expected to grow such as South East Asia, Brazil and Canada. Saudi Arabia will need to meet the challenge of maintaining inward investment in the face of potentially lower oil prices caused by the combined effects of increased supply from Iraq and US shale reserves.
However, the report added that the record budget announced by Saudi Arabia, in which social infrastructure is a key feature, would fund a huge number of housing, education and healthcare schemes.
With approximately 60 percent of the population below the age of 40, the country’s infrastructure and residential plans are in response to actual, sustainable demand from a native population rather than reliant on expatriates or the tourism sector The mortgage law passed in late 2012 will have a significant impact on the residential market by increasing the ability of Saudis to own homes.
The UAE has benefitted from capital flight from other parts of the region, but uncertainty over the fortunes of global markets continues to restrict the ability to raise debt funding and fuel real estate development.