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Doha: Qatar’s real estate sector is set to stage a strong recovery this year with addition of more residential units. Around 8,200 residential units are expected to enter market in 2021, offering more choices to homebuyers. A major portion of the new supply will go to Lusail, The Pearl-Qatar and West Bay.
“Residential supply for 2021 is estimated at 8,200 units. Approximately 80 percent of the upcoming supply is concentrated in Lusail, The Pearl and West Bay,” said ValuStrat, a real estate consultancy firm, in a report on real estate sector, released yesterday.
At the end of 2020, the residential stock stood at 303,015 units with the addition of 530 units during the last quarter.
The report expects the real estate to benefit from the increase in the population of expatriates in the second quarter of this year.
“Growth in expatriate population is predicted to rise in the second half of 2021, post lifting of social mobility restrictions, resulting in a pick-up in demand which could head towards stabilisation of rents by the end of 2021,” noted the report.
Apart from ValuStrat, several other institutions have given positive outlook about Qatar’s economy. The International Monetary Fund (IMF) has projected that Qatar’s economy is expected to grow by 2.5 percent during 2021.
“Despite COVID-19 and slowdown in the growth of expatriate population, the annual fall in rents and capital values of residential units during 2020 was less compared to Year-on-Year decline in 2019.”
Qatar’s hospitality and retail sectors are expected to bounce back this year.
The country is expected to receive 7,000 rooms (6,250 keys and 750 apartments) in 2021, according to the report.
Upcoming hospitality projects include The Plaza Doha, Katara Towers, Waldorf Astoria, Zulal Wellness Resort, Salwa Beach resort, Jouri Murwab Hotel, Steigenberger Hotel, Banyan Tree Doha, JW Mariott Hotel, Al Baker Novotel and Sofitel, Majlis Grand Mercure Hotel & Apartment and Dream Doha.
“Lifting of quarantine measures expected in H2 (second half) of 2021 might provide a boost to tourism. During H1 (first half) of 2021 mandatory hotel quarantine and domestic tourism may provide support to hospitality industry,” noted the report.
Citizens and expatriates will also see opening of new malls. The estimated mall supply for 2021 stands at 209,000 sqm GLA (gross leasable area), noted the report. The upcoming shopping centres projects include Doha Mall in Al Maamoura, Boulevard Mall in Jeryan Jenaihat and 04 Mall in The Pearl-Qatar.
The real estate sector of Qatar ended the year 2020 on an impressive note. The volume of real estate transactions during 2020 was QR31bn compared to QR22.8bn in 2019, according to the Ministry of Justice.
The value of deals signed during December surged around 128 percent compared to November 2020. Total deals worth over QR5.43bn were registered while 486 properties exchanged hands during December, according to a report by the Ministry of Justice. Deals worth QR2.38bn were signed while total 504 properties were sold in November last year.
After witnessing a lull in transactions during the second quarter of last year, the economic activity has again gained momentum, which is evident by significant rise in deal-making activities during third and fourth quarter of last year.
One of the main highlights of 2020 was further opening of real estate sector by allowing foreigners to own real estate in more areas in the country.
The move boosted the sentiments of the stakeholders in real estate sector. With this move, the sector has become more accessible to a wider pool of investors.
