By Mohammad Shoeb
DOHA: Qatar’s real estate prices have witnessed a steady decline during the second quarter of 2016 compared to the previous quarter, after reaching to its peak for this year in March 2016 (307.6 points).
According to the Qatar Central Bank’s (QCB) latest real estate price index released yesterday, the country’s real estate index for June 2016 has declined by 3.8 percent to 295.8 points from 307.6 points in March 2016. However, when compared on year-on-year basis, the June 2016 index has surged by 4.15 percent compared to 284.0 points in June 2015. When compared with the November 2015 index of 311.1 points, an all-time high, the June 2016 index showing a decline of nearly 5 percent.
Interestingly, the real estate price index in the all the three months of the second quarter of 2016 has maintained a steady decline of nearly 5 points each months, from 305.7 points in April to 295.8 in June, data released by the QCB show.
Enquiries with market leaders suggest that there is a lull in the real estate market. Private investors, especially the small investors in retail sector are very cautious. However, the residential housing sector is the least affected market. “We are monitoring the market very closely, and currently holding our investment plans on new housing projects as enquiries have relatively declined,” said the promoter of a real estate leasing company, who did not wish to be named.
“The rentals for housing units in Thumama, Al Wukair and Matar Qadeem (Old Airport) areas have declined by nearly 10-20 percent, but the property owners continue to demand the same rentals they leased during boom time. Many of them prefer to keep their properties vacant rather than leasing at a lower price,” he said.
However, given the huge public sector spending on mega infrastructure projects, in the run up to 2022 Fifa World Cup and Qatar National Vision 2030, by the government and its continued commitment towards supporting the non-hydrocarbon sector economy, the real estate sector is expected to remain vibrant.
The Peninsula
