Barwa Real Estate to invest $4.1bn in new projects
Barwa's investment plans include building over 12,000 housing units in a bid to meet the growing demand for affordable accommodation
Barwa Real Estate Company has stated that it would invest over $4.12bn (QAR15bn) in numerous new projects.
The company's plans include building over 12,000 housing units, with the intention of meeting the growing demand for affordable accommodation throughout the country.
The substantial funds are due to be invested over the next five years in a phased manner, to develop numerous real estate projects, including residential facilities, a motor city, warehouses, and complementary commercial and retail spaces, The Peninsula reported.
“We are going to sign agreements with Manateq (Economic Zones Company) within two weeks to develop a warehousing complex spread over 250,000m² along with all the support services, ancillary buildings and other complementary infrastructure,” Salman bin Mohammed Al Muhannadi, CEO, Barwa, said at a press conference on 1 May.
Al Muhannadi added: “The sequence of projects this year is quite heavy. And most of the projects are related to housing facilities.
“After Manateq, it will be followed by the implementation of Motor City (Madinat Almowatir), Dara-A (residential project in Lusail City), Barwa Village expansion, and Barwa Al Doha projects.”
Barwa management recently revised all its new projects that were still in design phase to ensure their returns are increased, one of which is Barwa Al Doha project.
The project was renamed after redesigning Alaateda project from commercial shops to a residential complex comprising 1,970 flats with comprehensive service facilities.
Dara project, spread over 147,000m² is currently under development at the northern section of Fox Hills in Lusail City, and is divided into Dara A, and Dara B-F which are to be completed by 2019.
Dara A will offer 272 residential units consisting of one bedroom, two bedrooms, and three bedrooms.
The Barwa Village expansion, a mixed-use project in Al Wakra, will add 71 shops and 174 additional residential units to the property.
“Our focus primarily is on developing mid and mid-high segment housing units which would be rented at reasonable rates to fulfil the increasing demand of residential facilities,” said Al Muhannadi.
He added: “We are expecting to hit the market when rent rates are going to be perceived as reasonable for a longer period of time.”
He said the company would continue to maintain the prevailing rates of rents in future: “Most of our housing units are now considered to be having the most reasonable rates in the market.
“Maintaining a reasonable rent is part of our national duty… but it is going to be challenging for us to maintain such rates. We have to work very hard, especially on the design and cost of construction, without jeopardising the quality,” he explained.
He said that the company has revised the whole Motor City development schedule and will move ahead in a phased manner instead of implementing the entire project in one go.
“We are launching the tender for the first phase of Motor City today, which is expected to be completed by mid-2017.
“There is a big demand, and we have started getting enquiries from prospective customers, including second hand car dealers,” he added.
While he ruled out any possibility of investing outside Qatar as the company is currently focusing on local projects, he said Barwa is exploring and investigating investment opportunities in neighbouring Saudi Arabia.