QCB: Real estate price index at record high
Land prices continue to surge in Qatar, with record prices being recorded
Qatar’s real estate price value recovered 23.5% in June, from the same time last year, despite an earlier softening in April 2015.
The Qatar Central Bank’s (QCB) real estate price index – which is a reflection of the surging value of the country’s real estate market – noted the property index hit a record high of 284.0 points in June compared to 230.6 points in the same month in 2014, The Peninsula reports.
QCB’s real estate index witnessed a slowdown during the first month of Q2 with the index slipping to 269.5 points in April, down from the previous month’s 271.3 points.
In June, the index jumped 284.0 points after a small rise in May. The combined value of Qatar’s real estate transactions for the first six months of this year (H1, 2015) surged 48 percent on year-on-year to QR36bn, according to market analysts.
This is against an 18% year-on-year increase recorded for the first half of 2014, when the combined value stood at QR24.4bn.
Central to Qatar’s economic outlook is implementation of the government’s five-year, $210bn infrastructure development plan, NBK analysts noted in its updated economic outlook for Qatar. The economy has been projected to grow at a rate of 6.5% per year for the next two years.
According to NBK, 30% more contracts were awarded than in 2013 – an estimated $29bn worth of contracts were awarded in 2014.
It expects momentum to further increase in 2015 on the back of strategic projects awarded in the first quarter of this year, to the value of $13bn.
Ahmed Al Arouqi, General Manager, ROOTS Real Estate said that Qatar’s real estate market has grown manifold over the past five years in terms of value, though the total number of deals have been remaining flat for the past three years. “If you compare the total number of deals struck in first half of 2015 with 2011, you could see the number fell to 3,050 from 3,279,” he said.
He outlined that land value for villas and residential complexes at prime locations have gone up at a significant rate over the past two years.
By way of example, land prices in Dafna, West Bay and Pearl, witnessed a sharp increase ranging between 40 to 50%, while in Central Doha and Al Rayyan there has been a recorded increase of between 30 and 35%. However, the surge land prices is comparatively moderate in places like Al Shamal and South Doha and in the municipalities like Al Dhayeen, Umm Salal and Al Wakra.