The real estate sector is booming yet again in Qatar. Market sentiments are reaching a new high due to a solid economic recovery, ongoing COVID-19 vaccinations, regional ties coming back to normal with the lifting of the blockade and winning the bid to host Asian Games in 2030. The sector is staging an impressive growth. Economic activity in the country has gained momentum. The International Monetary Fund has projected Qatar’s economy to grow by 2.5 percent this year.
With the 2022 FIFA World Cup fast approaching, progress can be seen in all aspects of Qatar. Amid more opportunities in the market and increased inflow of workforce, there seems to be a upturn in the demand for residential housing, providing a much-needed fillip to the sector.
Around 8,200 residential units are expected to enter market this year, offering more choices to homebuyers. A major portion of the new supply will go to Lusail, The Pearl-Qatar and West Bay. At the end of 2020, the residential stock stood at 303,015 units with the addition of 530 units during the last quarter, said ValuStrat, a real estate consultancy firm, in a report. The hospitality and retail sectors too are expected to bounce back. The country is expected to receive 7,000 rooms (6,250 keys and 750 apartments) this year.
Qatar is also experiencing increased real estate transactions. During the last six months, the value of real estate deals exceeded QR15bn, especially with the advent of new real estate products in the form of integrated townships along with a host of entertainment offerings.
Projects such as The Qetaifan Island and Lusail Seef are attracting considerable interest from buyers as well as investors. Moreover, with Qatar opening its property market to foreigners and rewarding buyers with permanent residency, Qatar residential market will witness a movement from a rental based real estate to a capital (sales) based economy, said KPMG in its latest report.
The volume of real estate transactions during 2020 was QR31bn compared to QR22.8bn in 2019, according to the Ministry of Justice. In December, total deals worth over QR5.43bn were registered while 486 properties exchanged hands. In November, deals worth QR2.38bn were signed while total 504 properties were sold.
One of the main highlights last year was further opening of real estate sector. In October last year, the government announced the decision to allow foreign companies and individuals to own real estate in 25 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.
