SHOULD REAL ESTATE PRICES FOLLOW THE CYCLES OF THE ECONOMY


Rashid Al Marri
Al Imtenan Real Estate
General Manager

When establishing our real estate company, one of the first things we did was study the four phases of the real estate cycle, which are known as recovery, expansion, hyper supply and recession. This cycle can be, and is, used by real estate professionals around the world. Studying this cycle is generally very important in predicting the right time to buy, hold or sell and from that, we can advise our clients from a standpoint about their investment portfolio. This is also very helpful for all other players in the market, such as agents and renters.

In the case of Qatar, the real estate market is completely different from that universal cycle, especially when you factor in the 2022 FIFA World Cup, where prices should simply follow the economy. Every real estate company striving for long term success must stay on top of its business, always hunting for good opportunities that have yet materialised from the country winning the bid to host the upcoming World Cup; this is the main reason that we are witnessing an increase in average prices across the real estate market.

The monetary intervention of foreign investors in the Qatar real estate market

When it comes to monetary policy in general, perception is reality, especially for foreigners who would like to reap the benefits of investment in Qatar. This will result in promoting economic growth, stabilising prices and reducing unemployment rates.

Investment in Qatar nowadays with the 2022 FIFA World Cup just around the corner, has had a transparent and immediate effect on the real estate market. As for the commercial side, it is not less dramatic which is not always apparent to onlookers.

The huge housing demand has positively impacted the state local finance costs which is evident from the continued influx of investors. Negatively, there is still a large pipeline of refinancing in our short-term future, especially after the 2022 World Cup later this year, that will determine long-term progress in the state of Qatar that we should start thinking about from now.

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