Prevailing positive market sentiment is forecast to continue until the 2022 FIFA World Cup
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.
We believe the market will see a greater focus on quality delivery across the development ecosystem, from planning to construction and handover.
Buildings are expected to have a rating of A, B or B+. These ratings will become increasingly important as differentiators when prospective tenants weigh housing units in the same vicinity. We believe that units of superior build and maintenance quality will gain favour among users. We are increasingly seeing prospective tenants prioritise interior fitout standards. Pre-lease checks on fitout quality are now becoming commonplace as tenants seek to avoid the stress, time and expense that can come with lesser quality fixtures.
Premium rentals can be achieved from buildings which are Gold or Platinum certified under the Leadership in Energy and Environmental Design standards.
The presence and quality of elevators is another key rental determinant, particularly for high-rise residential complexes.
Superior quality buildings are leased faster and more likely to achieve tenancy renewals. This also has the advantage of satisfied tenants spreading word of the quality of their residences, thereby increasing demand. The reputation of quality properties will also be boosted via social media comments.
Since supply is currently higher than demand in Qatar, tenants have more options and a wide variety to choose from. Hence, they tend to opt for better quality, fully furnished residences which enable them to move in and settle down faster.
One emerging trend within Qatar is the viability of residences outside the city centre. With the Doha Metro slated to play a major role in terms of connectivity, the advantage of being centrally located is no longer viable and build quality is emerging as the predominant determining factor for tenants.
This article was published as part of the fourth edition of Property Finder Qatar’s Trends Report