DOHA: A piece of real estate in Old Ghanem locality of Doha was sold at a record rate of over QR209,000 ($57,000) per square metre in the first week of this month.
The 2,167-square-metres land plot, understandably for commercial use, was sold for as much as QR453.6m, transaction figures for the week released by the Ministry of Justice show.
A total of 171 transactions were conducted in the week (June 1 to 5) with their value adding up to a QR1.35bn, down from a record QR2.3bn the previous week (May 25 to 29).
The Justice Ministry has a real estate registration department which releases property transaction details every week.
Old Ghanem is in downtown Doha, behind Grand Hamad Avenue, which is popularly known as Bank Street.
A highlight of last week’s transactions was that more than a quarter deals involved small residential land plots in areas like Umm Salal Ali, Al Dhayeen and Al Wukari in Al Wakra.
Most of these plots were valued at a little more than a million riyals, with some even costing less than a million.
Real estate experts are of the view that since land prices have been soaring undeterred, particularly in Doha, land on the city’s outskirts should be developed and brought within Doha Municipality’s jurisdiction. This would help reduce land prices as supplies would rise.
Rough estimates suggest that due to mega development projects being launched ahead of the FIFA 2022 event, land prices went up almost 30 percent in 2013.
In the first quarter of this year, the prices rose a further 25 percent and the trend is likely to continue throughout the year and beyond, say experts.