Qatar's real estate market recovering steadily
According to Qatar Central Bank’s updated data in December 2016, quarter-on-quarter, Qatar’s real estate price index saw growth of 4.6%
Qatar’s real estate price index up quarter-on-quarter, Qatar Central Bank’s (QCB) reports.
According to Qatar Central Bank’s (QCB) updated data, in December 2016 Qatar’s real estate price index hit 279.1 points, a quarter-on-quarter growth of 4.6% compared to the lowest point for the year in September, which registered 266.8 points, The Peninsula reported.
The December 2016 index moved up by 2.2 points from 276.9 in November 2016, showing a marginal growth of 0.79% on month-on-month basis.
QBC bases its monthly price index on the real estate data issued by the Ministry of Justice (MoJ), which showed that the real estate market hit the highest level of 2016 in March, registering 307.6.
However, when compared y-o-y, the index in December 2016 (279.1), showed a decline of 4.5% compared to the corresponding month in 2015.
According to the available central bank data, in November 2015, Qatar’s real estate price index hit an all-time high of 311 points, after it declined by 18.6 points to 292.4 in December 2015, a month-on-month fall of nearly 6%.
Ezdan Group’s latest report on the sector suggests in 2016 the market remained constant and stable, despite a significant fall of QAR28.4bn ($7.8bn) in the total value of transactions.
In 2016, the combined value of real estate transactions in 2016 compared to 2015 was down by about 50% from QAR27.6bn ($7.6bn) to QAR56.bn ($15.3bn).
An apparent shortage of land plots in Doha accounted for the decline in the total value of the number of transactions for the sale and purchase of plots of land in 2016, the report suggested.
While the combined value of the land plot transaction during 2016 totalled QAR7.1bn, ($1.9bn), or 25.8% of the total value of transactions during the year, the sale and purchase of mixed-used buildings, including villas and apartments, touched QAR20.5bn ($5.6bn), accounting for 74.2% of the total value for the year 2016.
The report also highlighted the sharp increase in the prices of land plots in Doha, driven by a high demand throughout the year.
It also noted that this does not reflect the actual value of the real estate assets, and was one of the key reasons for the reduced number of transactions for land plots during the year.
The Ezdan report highlighted the Qatari real estate market generally, remained resilient against the impact of the dwindling energy prices, while the global real estate market remained subdued owing to the volatile oil market.