DOHA: Qatar’s property transaction value recorded a huge jump in the first quarter of 2014 recording a high 35.2 percent to QR11.9bn compared to QR8.8bn during the same period in 2013.
The value of transactions during January 2014 reached QR4.8bn compared to QR2.8bn exactly a year ago, recording 71.4 percent growth. However, the rate of transactions saw a marginal decline in February 2014 compared to the same month in 2013. This February saw a 6.5 percent year-on-year decline in transactions before rebounding to a 44.8 percent growth in March 2014. The total transactions value during the last month was QR4.2bn compared to QR2.9bn worth deals in the same period of 2013, Al Sharq reported.
Leading market players in the real estate sector noted that Qatar’s new budget proposals that projects a whopping QR87.5bn spending in the infrastructure, is going to be a big booster to the sector. The projected allocation is up 16.8 percent compared to the previous budget allocations to infrastructure development. The Finance Minister’s announcement that the government would spend an estimated QR664bn in the non-oil and gas sector for the next five years has further lifted the spirit of the country’s construction sector, they noted.
Khalifa Al Muslimani, a leading real estate appraiser, attributed the huge growth in the real estate transaction in the first quarter to the increase in the land value. “The real estate stocks on Qatar Exchange have really performed well during the first quarter of this year. This has lifted the confidence of real estate investors. This trend is likely to continue in the coming quarters”, he said.
The newly enacted law intended regulate the real estate market is another driver for the construction sector. The market players believe that the law will help check market manipulators and further stabilise the market.
“Given the huge number of projects lined up for future, Qatar’s real estate transaction value is expected to accelerate further in the next quarters”, said Mansour Al Mansour, another leading player in local real estate market. He believes Qatar’s construction sector is heading to strong recovery in the coming years and would attract substantial amount of foreign investments.
Ali Al Naimi, another real estate expert, said the spurt in transaction is due to the country’s fast growing population rate. “The real estate sector is moving in the right direction, and the coming years will witness an acceleration in the growth in line with the 2030 development strategy.”
Mohammed Hale, a local businessman, said Qatar’s real estate sector is set to attract huge foreign investment. The projects related to infrastructure of various hues are considered an important factor to stimulate the sector. He said Qatar’s real estate sector is one of the best destinations in the region where foreign investors can safely park their money.