Doha: As ‘branded residences’ emerges as a ‘product segment’ in Qatar’s real estate market, a large number of investors are looking to capitalise on this opportunity. Sotheby’s International Realty said it is very excited to be in Qatar at this point, to introduce this new product segment to the local real estate market.
“It has proved extremely successful around the world and was not widely available before. However, we believe it is the perfect time for this asset class and this is a gap which needs to be filled in the high-end market”, Seran Gheorghe of Qatar Sotheby’s International Realty noted in Property Finder’s latest “Qatar Property Trend”
Across the world, Sotheby’s International Realty has seen prices of branded residences rise four times from the original offering and selling and renting at more than double the price of any similar non-branded property in the same area. This is because the right branded residence always comes with the right lifestyle, the right facilities and the right services, which the operating brand demands.
This is usually the time when the market price is set and the demand for living in such development is fulfilled, he said.
Global buyers are prepared to pay a premium where they know their property is in the right location, safe, maintained well and serviced to international standards. While a brand association may result in a premium in any region, the additional value varies from one place to another. When it’s an entirely new offering, prices might be two to three times the price of anything in that market.
Looking forward to 2020 and beyond, Gheorghe added, Sotheby’s we will start to see amazing projects getting ready in Doha and lifestyle projects that are fit for one of the most exciting countries in the world.
‘The Property Trend’ on Qatar shows top market leaders are largely bullish on Qatar’s real estate market. Nasser H. Al Ansari, Chairman, Just Real Estate said buoyancy is expected in Qatar real estate sector on ownership incentives.
He said Qatar’s real estate sector is entering a new era, with competition driving more affordable pricing and enhanced quality of delivery. The buoyancy also comes in the wake of the recent legislative changes which allow non-Qataris to own property in the country and offer residency to foreigners. These initiatives are expected to further boost Qatar’s real estate sector’s potential. The prevailing positive market sentiment is forecast to continue until the nation hosts the FIFA World Cup in 2022.
Hani Dabash, Property Management Director at Ezdan Real Estate said Qatar’s 2020 budget has helped boost the country’s real estate market sentiment. The completion of mega infrastructure projects has added to momentum across asset classes.
Alex Ionescu, Head of Valuation & Advisory Services, MD Properties noted that Qatar is making great strides for a sustainable property market.
The prices of residential and commercial properties suffered a drop, mainly based on oversupply. With new projects being delivered, clients aimed to move to a better location with different facilities and incentives from landlords at better rates, he said.
“If in the past, landlords were okay to deal with a short vacancy period, the sentiment has shifted now. As we are approaching the 2022 FIFA World Cup, they are considering taking on tenants at lower rates or offering incentives like rent-free months in order to have the units occupied,” Ionescu said.
Sulaiman Al-Banai Owner and General Manager of AlDar Properties stressed the need for market players adapting to Qatar’s new reforms.
Over the last few years, there have been major developments in areas such as real estate related laws and regulations, e-government initiatives from various ministries, immigration and labour laws and regulations, and justice system reforms. Many of these developments are still ongoing.
“The phase one of the Qatar National Master Plan (QNMP) began last year with new regulations and procedures in place to obtain building permits for almost all asset classes. With Qatar National Vision 2030 as the main influencer, QNMP is set to make Qatar a role model for sustainable urban living and among the most liveable towns and cities in the 21st century. From a market perspective, the sooner investors, developers and architects understand these changes and adapt to them, the better their chances of success will be,” he said.
