At a time when the world’s magnates are making bashful investments in unrest-swept Middle East, Qatar still has not disgruntled speculators and real estate fanciers, to whom this land of the Gulf is the safe haven for their lucrative projects.
With a population of around 1.8 million people, the small peninsula of Western Asia has yet managed to flourish, vying Dubai—better seen as the byword of success—for optimal cash attraction. Worth-mentioning, when it comes to real estate and properties, Qatar is 20 to 40% cheaper than in Dubai.
Clearly enough, Qatar’s commercial real estate and construction sectors will be among the top-notched performers in the Middle East. In fact, the country’s National Vision 2030 and the much-awaited 2022 World Cup are stepping-stones to the development of real estate and infrastructure sectors.
As phrased by the Ministry of Development Planning and Statistics, by 2030, Qatar aims to be an advanced society capable of sustaining its development and providing a high standard of living for its entire people. Qatar’s National Vision defines the long-term outcomes for the country and provides a framework within which national strategies and implementation plans can be developed.
It is anyway such an amenity that the fundamentals of Qatar’s economy do not depend on the real estate and are unaffected by the global credit crisis.
Qatar Central Bank’s (QCB) annual update of 2013 real estate price index indicated the country’s real estate market prices were heading to tower. The update showed that the index had touched a high 189.8 percent in December 2013, up by 21 percent year-on-year. After reporting a fall for two consecutive months, the index hiked to 178.6 points in September 2013. The September levels rose to 184.7 points in October and 184.4 percent in November, heralding Qatar’s real estate market is either on the recovery mode or heading to a record price. According to experts who follow up on Qatar’s real estate market, the deals in the country last year were worth QR45.5bn. In the run up to the FIFA World Cup in 2022, Qatar plans to invest over $140bn over the next five years in transport infrastructure to transform Qatar. Currently supply of housing is scarce and with an increase in population forecasted in Doha over the coming years, construction of affordable residences will increase. Furthermore, incoming news claim that Golden Tulip, Hilton Worldwide and the Starwood Group are keenly considering investments in this sub-sector in Qatar.
The anticipated influx of millions of visitors and football fans in 2022 has driven Qatar to plan for the development of several hotels in the forthcoming years and hence to create the opportunity for the development of commercial units, such as various shopping malls.
Qatar’s real estate boom has been, at least partly, triggered by Doha’s infamous Pearl, this Riviera-style man-made island developed in an exclusive environment in the capital, where one can enjoy high-end retail shops, a stroll along the boardwalk overlooking the marina, and five-star service at the queue of international cafes and restaurants. The Island, to be finalized in 2015, was the first development in Qatar to offer freehold and residential rights to international clients. Development of The Pearl-Qatar’s 10 precincts is well underway. Upon completion, approximately 19,000 residential dwellings will be in use on the Island.
Additionally, the construction activity is now projected to expand by 15.7 percent in 2014, rendering Qatar real estate segment even more nascent.
In a nutshell, the real estate sector in Qatar has faultlessly earned its renown, making the national economy even more buttressed.