DOHA: Braving an unjust blockade imposed on Qatar by a few neighbouring countries, Qatar’s real estate sector witnessed a high growth rate, both in terms of value and numbers in 2017. The entry of a large number of citizens from foreign countries, and the approval of a draft law that allows non-Qataris to own real estate helped boost the market in a big way, Qatar’s leading real estate developer SAK Holding Group noted yesterday
The country is witnessing the start of an unprecedented economic transformation, which resulted in Qatar establishing the foundations of a flexible, independent and open economy. The private sector, which strengthened confidence in the fortitude of the national economy, and its ability to continue to achieve its development projects and plans, SAK Holding’s market watch bureau report said.
The report noted that the blockade had failed to make a dent in Qatar’s strong market fundamentals. The banks continued to fund the country’s key projects. The FIFA 2022-related projects are progressing according to the original schedule. Despite the blockade, the World Bank’s annual report forecast that economic growth in Qatar this year will rise to 2.6 percent and rise to 3 percent in 2019, with continued improvement in oil and non-oil exports.
This is all taking place in the midst of economic uncertainties concerning the future of oil prices in world markets, which seems to predict that the prices of oil will come down from the $ 70 threshold it recently reached with a great deal of hardship. For almost three years, prices struggled to leave the records of the fifties and sixties, after the meetings of Opec and non-Opec exporting countries, and production cuts extended more than once without significant results.
The market is expecting an increase in the inflow of investments into the real estate sector going forward, especially in the housing sector. The activities in the construction sector will witness a peak during the second half of this year.
The monthly real estate report issued by SAK Holding Group, states that the real estate cycle entered a phase of gradual upward readiness that will reflect cumulatively by up to 8 percent on the annual growth rates until 2019. In view of investments traditional trends in Qatar, the construction market continue to retain its general attractiveness, driven by public optimism about continued sustainability of project spending, and its impact on the continued demand for real estate units, which is still considered by a large segment of investors and savers as a safe haven; because it is an investment capable of protecting initial investment value of assets. Such young investors, make up a significant proportion of the volume of real estate activities specifically in the residential property category, which has for years contributed to the continued pumping of liquidity into real estate investment.
Citing a series of positive macroeconomic indicators, the report noted that they would act as triggers to the market in mid-term. There is a 13.4 percent growth in the number of companies established in Qatar in 2017. The establishment of 14639 new companies in Qatar over the past year will increase the demand for a variety of units and areas of land, particularly commercial ones, especially for the 32 foreign companies coming to Qatar for the first time. The post-blockade period witnessed registration of 27 foreign companies in Qatar.
The report pointed out that the real estate market is preparing to receive large areas of commercial properties. As a large number of commercial complexes in various areas are near completion, which may lead to growth in commercial areas and retail trade business by about 70 percent as of today. It is imperative to deal realistically with this challenge, without imposing additional burdens on the existing ones.
