House rents on the rise, say banks

February 24, 2013 - 2:42:41 am

DOHA: Giving credence to market speculation, two leading banks — the QNB Group and the National Bank of Kuwait (NBK) — have said that house rents are on the rise in Qatar. 

An analysis of QNB Group said that after four years of deflation, housing costs were up by 2.8 percent in 2012 compared to the previous year. “Although housing costs did decline substantially in the first half of 2012, contributing to an average 3.3 percent fall over the whole year, there was a return to growth in rents in the second half. 

The increase was largely due to fresh inflows of expatriate workers to implement the country’s major infrastructure projects,” the report said, adding that this year will see the house rents further going up, with a modest inflation of about 3.7 percent..

In an exclusive report on Qatari economy, released yesterday, the National Bank of Kuwait (NBK) has forecast Qatar’s inflation is set to pick up in 2013 and 2014 and reach 3.4 percent and 4 percent respectively. The rise in inflation will be largely due to a turnaround in the rental component of the consumer price index, which has, since the middle of 2012, posted continuous monthly increases.

According to market sources, sensing market trends, some property owners have resumed demanding an increase in rents. 

“The 2008 financial crisis, coupled with massive launch of housing units in the market, saw the rents in Doha falling by 20 to 25 percent. The rents have started picking up. You need to pay QR6000 to get a mid-segment two-bedroom apartment in Doha today, which was available for around QR4500 until a few months ago”, according to a local real estate broker.

There is a huge pressure on mid-segment commercial space too in Doha. The Peninsula