Qatar’s real estate sector has weathered the blockade storm. The market is giving enough signals that it has overcome the siege impact. This can be gauged from the fact that the country’s real estate prices have remained almost stable in the first quarter of this year.
The total value of the Qatar’s real estate transactions in the January to March period reached more than QR4bn.
An estimated 13,000 residential units are expected to be completed by the end of 2018. Qatar property market’s total housing stock by the end of 2017 was approximately 286,125 units. Analysts say that easy availability of lands, a series of government decisions to support the industry and a steep fall in construction costs have helped strike a realistic chord with Qatar’s real estate industry. Office rents have become more competitive. Less pressure was seen on the retail sector, and increased occupancy for hotel apartments and 3-star hotels.
In the first quarter of this year, the total value of housing transactions amounted to QR1.4m, witnessing a marginal decline, mainly due to a fall in prices of real estate properties.
The silver lining was that the decline in prices led to corrections in rentals almost across the board making residential, commercial and retail spaces more affordable and competitive across the country.
This correction, however, is bringing opportunities and a new investment theme to the market — affordable luxury.
A leading property developer said in a report that the government’s focus on the completion of the major development projects, especially infrastructure projects and projects related to the World Cup 2022, will attract the continued flow of real estate liquidity.
Moreover, the new draft law for foreign real estate ownership is expected to boost sales for residential and commercial properties in Qatar, as well as increase foreign direct investment.
Another knock on effect may be an increase in foreign businesses establishing regional bases in Qatar meaning increased demand from expatriates and market witnessing more transactions. Upgrading homes, moving to more desirable areas, and even entering home-ownership for the first time is becoming a reality for many. This means that the volume of transactions remains strong with the potential for further growth.
Qatar’s tax incentive is yet another attraction for investors in the real estate. Qatar provides tax exemptions from interest and banking revenues that do not engage in taxable activity whether resident or non-resident. Qatar is ranked first as the world’s best corporate destination in terms of taxes and levies, a report from a leading property developer said recently.
Property developers have strong faith in Qatari economy. The wise policies of the government will lead to more real estate transactions, mainly residential properties, which are expected to increase in the near future.