Jawdat Al Kateb
Coreo Real Estate
Customers everywhere have one thing on their mind when they look at houses in this market: the rising cost. With the 2022 FIFA World Cup ™ right around the corner here in Qatar, the prices in the real estate market have shot up, leaving those involved wondering: Is this a hype because of the World Cup ™ or are the prices going to continue to stay at this level?
The case of rising prices
The rising prices due to one of the biggest sporting events of the world is a no-brainer. As we get closer to the World Cup ™, many have noticed that the real estate prices are soaring. It is important to understand that despite the country’s efforts to accelerate the progress of constructing new residential buildings to meet the demand of the World Cup ™ event, the increasing demand is the biggest driver of the increase in current supply prices.
Historically, all other cities that have hosted the World Cup ™ have witnessed such a spike in demand and as such, prices before and during the tournament. For example, Rio de Janeiro during the 2014 FIFA World Cup ™ in Brazil saw a continuous upward trend of real estate prices. According to researchers, there was “a large increase in property prices, reaching levels never before practiced.” However, this increase was followed by “a drop in price.”
In Qatar, experts have witnessed a notable increase in demand for certain prime locations such West Bay, the Pearl and Lusail. But this also extends to properties in other areas of Doha such as Al Saad, Bin Mahmoud, and Al Waab and more. While these areas tend to have more affordable housing, they have also been affected by rising prices because many end up relocating to them to keep rent within their budget.
But are house owners allowed to do it?
While experts see that there may be a drop in prices post-World Cup ™, with Qatar’s sights set on other major sporting events as well as developments with the LNG fields expansions, expect an increasing number of expats moving to the country to keep prices steady. Short answer? Yes! The laws in Qatar do not restrict landlords from increasing the rent of a lease after the expiration of said lease if both parties (landlord and tenant) agree on the new rental rate. It is up to the tenant to decide whether they would prefer to renew it or move to a more affordable property.
Landlords these days are aware of the fluctuations in the market and tend to price their properties accordingly. One can’t blame them either – they are simply maximizing the ROI on their investments.
So, what can you do?
It’s very important, now, to have an overview of the current housing market from an expert real estate agency before making any decisions. One wrong decision and there is a possibility that you lose your current apartment without securing another suitable option. Having been in the market since 2008 as an award-winning agency, give us a call here at Coreo for free advice with your real estate decisions.
As per expert opinion, the costs are most likely a hype but will continue to go up with the World Cup ™ in sight. If the rent increase is in your budget, it is highly recommended to renew your agreement. This will also save you on increasing moving costs. With the market supply and demand balance back to normal after the World Cup ™, renters and buyers are more likely to enjoy favorable costs when it comes to leasing or buying a house. So, keep tight!
This article was published as part of the eighth edition of Property Finder Qatar’s Trends Report.