Qatar to spur growth in real estate market
Qatar consulting group ValuStrat’s 2017 Qatar Market Outlook, forecasts sustained strong residential demand for mid income housing in Doha, as the population growth continues
ValuStrat’s 2017 Qatar Market Outlook outlines demand throughot the real estate sector.
In 2017, Qatar’s construction and real estate sectors are seen to benefit by a QAR46bn ($12.6bn) investment plan.
According to leading consulting group ValuStrat’s 2017 Qatar Market Outlook, strong residential demand for mid income housing will continue in Doha, as population growth continues.
Major retail developments expected to come online in the market in 2017 include Doha Festival City, North Gate Mall and Al Hazm Mall, while Doha’s retail stock is anticipated to expand by around 1.9 million square metres over the next five years.
Q1 2017, office rates are due to oversupply owing to slow economic activity, while inflation is expected to remain at around 2.0 to 3.0% over the next three years.
The World Bank forecasts its oil price for 2017 to average at $55 per barrel.
Dependent on construction interruptions or delays, the hotel sector supply pipeline until 2017 could include over 9,600 new hotel keys and 3,400 new hotel apartments.
Q4, 2016 ValuStrat’s review on the infrastructure sector highlighted that the period witnessed the opening of New Hamad Port, becoming operational in December, and noted that it will be one of the world’s largest Greenfield port developments.
The report also noted that the Qatar World Cup in 2022 final stadium will transform into a Theatre District.
Q4 saw strong growth in retails supply with the soft launch of the Mall of Qatar while rental prices dropped by 8% during the period.
If the rent-free period is taken into account, rental values have fallen more than 15% from 2015, the report added.
Prime rents for Grade A offices in prominent locations were also on a downward trend in Q4, which are currently at QR180-230/m²/month.
Q3 witnessed a fall in demand for residential blocks and compounds, while Q2 saw growth in office availability throughout West Bay owing to the completion of new office buildings and a fall in demand for office space.
Qatar Rail announced the completion of tunnelling on the Green Line of Doha Metro project and in September 2016, Qatar's population reached 2.55 million, equalling its previous highest levels in February 2016.