PREDICTIONS FOR THE UPCOMING YEAR IN THE REAL ESTATE MARKET

Khouloud Dakhlaoui
CEO & CO
Zawaya Real Estate

The real estate sector is one of the fastest growing economies in Qatar, and a safe roadstead for many investors, this is all plausible only because of the development policy pursued by the government and the solutions it proposes, which has led to an increase in the number of real estate companies operating in the market. Even though, the COVID-19 pandemic has led to the across industries both globally and regionally, and Qatar being no exception to it, the real estate market has demonstrated remarkable persistence to the economic turbulence caused by the pandemic.

The 2022 FIFA World Cup™ is fast approaching and this has been at the heart of Qatar’s economic plans, it has served as a source of great inspiration during the recent turndown. Whether the crisis took the form of a raging pandemic or political tensions, the event remained and still remains as a source of hope for the public as well as the economic decision makers of Qatar.

Overall, with an expected Influx of tourists into the country, hotel occupancy rates and RevPAR are expected to increase, boosting the hospitality sector. The World Cup™ is expected to support Qatar in achieving its longterm urban development and economic diversification goals, as well as to strengthen the country’s position as an appealing investment destination. The country finds this opportunity as a gateway for foreigners to come and explore the country to bring to their attention that Qatar is a great place for business, investment opportunity and migration.

With regards to the future outlook, the real estate market looks quite positive. Currently there is a boom, due to the upcoming major event, where the country is witnessing great cash flow and great demand from investors and business owners to establish hotels and hotel apartments throughout the country. The marketing is witnessing a standard of two year contract requested by the landlords. After the World Cup™, both rental prices and unit values of the real estate market could decline for a year or so. This will be because many people and expats working on projects related to the tournament would begin to leave the country once the event concludes, thereby leading to a decline in demand for both residential and commercial units. This trend was observed in the countries that hosted FIFA in the previous years.

However, the medium-term outlook for the Qatar real estate market looks bright, indicating that Qatar could even be an exception or rebound back much quicker. This is due to the supportive government that Qatar has, which allows for a number of freehold areas in the country, open to fortegin real estate ownership. The freehold law for Qatar real estate would allow foreigners to come and own properties in the country. While this would take some time to become effective, it would open the sector to foreign investors. This would further develop the market in Qatar self-sufficient like in the developed nations, reducing the sector’s dependency on the government alone for financial injection.

Let’s not forget that Qatar has won the hosting bid for the 2030 Asian Games, and it has also submitted a bid to host the 2027 AFC Asian Cup. The future for real estate seems brighter than ever before!

This article was published as part of the eighth edition of Property Finder Qatar’s Trends Report.