WHAT CAN WE EXPECT FROM THE REAL ESTATE MARKET IN 2021 AND BEYOND?

Michael Kfoury
Group Director of Marketing and Communications
Regency Group Holding – Al Asmakh

As Qatar continues to diversify investment opportunities in the country that go beyond the oil sector, we can predict a steady and healthy growth, and a phase of recovery in the market in the upcoming year. The real estate sector will take massive leaps in the coming years, especially in construction, sale and rental operations, considering the scale of events that will take place, which are of course the 2022 World Cup tournament and the 2030 Asian Games. In addition, the government has been heavily focused on improving the infrastructure of the country, and creating new and sustainable solutions for nationals, residents and visitors. This in turn, will support the rejuvenation of the real estate sector, keeping in mind that real estate holds the top spot in terms of spending and investment, compared to other sectors.

Pricing strategy

Recently, we’ve seen an increased interest in apartment purchases throughout Doha, which began in the second half of 2020, and was supported by the volume of apartment rentals in that time frame. In fact, we can predict a 10 percent increase in sale prices for apartment units in certain areas, for the second half of 2021. This is largely due to the fact that investors are keen to capitalize on the heavy footfall of visitors and expats that the country will witness in the next few years, especially as it continues to host high level events. Additionally, we have also seen a shift in enduser interest, as demand has increased recently, with developers and owners offering a variety of high-level housing spaces with different layouts, specifications and amenities. And this is one of the unique aspects of the real estate market in Qatar, which offers units across the spectrum for those interested in buying units, as well as new laws in place to protect investors and buyers.

One of the most important changes that took place last year was Cabinet Resolution No (28) of 2020, which highlighted the new areas where non-Qataris can own properties, which also include a number of conditions and benefits that facilitate investments. As a result, we are seeing very high demand for units in Lusail and The Pearl, for example, that are being sold in record time, which is a testament to the increased interest in real estate investment in Qatar.

In terms of rental prices, we can also safely predict a 10 percent increase in average prices through the second half of 2021, especially as we witness an influx of newcomers in the country. This is especially true in newer and emerging areas, which offer high-quality units and amenities, and remain the most popular areas for renters.

The economic boost that we are currently witnessing across all sectors in the country is highly supported by the real estate sector, as construction projects and the development of residential commercial and mixed-use projects go into handover at a rapid pace, in areas such as Lusail City, The Pearl, and Msheireb Downtown Doha, which are areas that are defining real estate in Qatar, and have given a new, innovative meaning to real estate investment.

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