How the Qatari property market is making a leap to the future

The Qatari property market has recently seen a surge, dazzling the world with modern architecture and sublime developments. It is almost entirely surrounded by the Arabian Gulf, except for its southern border which it shares with the Kingdom of Saudi Arabia.

In 2016, Qatar banks’ credit facility to the real estate sector saw a major growth. Real estate loans jumped 7.65 percent, from QR9bn to reach QR130bn. These real estate credit facilities include purchasing land, property developments and residential and commercial buildings.

Meanwhile, however, interest rates are going up and banks are tightening their collateral conditions. This, in turn, is putting the real estate sector under pressure due to funding constraints.

Moreover, real estate prices are falling and rents are stabilizing. According to DTZ Research, tenants are now searching for more affordable housing so demand in areas such as Najma, Umm Ghuwailina, and Al Mansoura is rising.

So where does that leave a country which is witnessing an exponential population growth and preparing for the World Cup? Despite a lag in economic growth, the Qatari property market is bracing the waves. In its endless strive to become a global leader on several fronts, Qatar is proving to be up for the challenge.

Retail space will expand by 220% by 2019, according to DTZ’s “Qatar Q2 2016” report. About 105 new hotels with 21,000 rooms are in the pipeline, most of which will be ready before 2021. There are currently 643,000 square meters of purpose-built mall space, and that could grow another 1.3m square meters within three years.

According to leading consulting group ValuStrat’s 2017 Qatar Market Outlook, demand on mid-income housing will continue to grow. Therefore, housing projects are on the rise throughout the country. They are providing a myriad of options for homeseekers, whether GCC locals or expats.

However, the majority of these developments boast luxury units that target higher income households. Still, various Qatari firms are currently renovating and constructing lower to middle income households to meet the market’s increasing demand.

Here are a few of the major developments that are making their way onto the Qatari property market.

The Pearl Qatar

The Pearl is a key project that is beng developed by United Development Company (UDC). The artificial island spreads across about 4 million square meters. It is the first project to provide freehold ownership for foreigners.

Once completed, it will hold 45,000 residents and will reach an estimated cost of $15 billion. This mixed-development is made up of ten precincts that include resedential and commercial units, as well as entertainment venues.

Msheireb Downtown Doha

Aimed to preserve the historial essence of downtown Doha, Msheireb Downtown Doha is a $5.5 billion project. The 310,000 square meter development will add about 900 residential units to the capital.

Furthermore, it will boast sustainable technology and will adhere to constructing green buildings. Msheirab Downtown Doha willl also include three government buildings, luxury hotels, commercial office space, retail shops and restaurants.

Lusail City

Lusail City is a 38 square kilometer development located 23 km north of Doha. The city will hold 260,000 residents when completed. The city’s crown jewel is Lusail Stadium which will host the opening and final matches of the 2022 FIFA World Cup.

It will also feature marinas, residential areas, island resorts, and commercial districts. As well as luxury shopping and leisure facilities, a golf course community, man-made islands and entertainment districts

Aside from the property market, Qatar is also improving and developing its infrastructure. The Qatar Rail Development Programme, Sharq Crossing, and Expressway Programme are such projects that are currently underway. They aim to ease and improve transportation means throughout the country.