DOHA: Real estate experts are urging the government to intervene and stabilise soaring prices of properties, including plots of land.
They said it can be achieved through steps, including starting more housing and commercial projects on the outskirts of Doha and its suburbs, a local Arabic daily reported yesterday.
“It’s a vibrant market. Despite summer holidays, the market is continuing to revive. The prices of properties have been witnessing a steady rise, which needs government intervention to create a balance between demand and supply,” Khalifa Al Muslimani, a market analyst, was quoted by Al Raya as saying.
He said as a result of some government initiatives, including those taken by the Real Estate Registration Department at the Ministry of Justice, the market has been registering a steady growth over the last several months despite Eid and summer holidays.
“Government measures have made buying, selling and leasing properties very easy. Even during summer holidays transactions and registrations were done without much difficulty.”
He said although the prices have gone up over the last several months due to high demand, nothing can be said whether they will continue to rise or come down after the vacation.
“Prices of housing and commercial properties this year have increased by over 30 percent compared to last year, while those of land plots have surged between 40 and 50 percent over the previous year,” Al Muslimani added.
“People who bought plots last year are getting handsome returns on their investments. This trend is expected to continue until the government continues to implement mega-infrastructure projects.” He said like other markets, prices in the real estate sector are determined by demand and supply. “Since demand is higher than supply, prices are continuing to rise.”
Al Muslimani said Qatar’s real estate market will continue to remain strong and vibrant, provided there is timely intervention by authorities to maintain a balance in demand and supply.
He said this balance can be achieved by starting new projects in the commercial and housing sectors and in specific areas to support the demand created by mega projects. It will further create opportunities for private investments from locals and foreigners.
He suggested that the government should monitor the real estate market and allow vertical construction in prohibited areas, such as Bin Omran, Al Mirqaab and Al Matar Al Qadeem which have supporting infrastructure facilities to increase the supply of commercial space and housing units.
Another expert, Rashid Al Ateeq, added: “The government’s initiatives have helped reform the market, but it needs to open new branches in areas which are underserved and far away.”
He said real estate giants such as Barwa Real Estate Company and Ezdan Holding Group can play a very positive role in stabilising inflated prices by offering affordable housing units and commercial space, which will positively impact the market and check rising rentals.
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