DOHA: Qatar’s new draft law for foreign real estate ownership is expected to boost sales for residential and commercial properties in Qatar, as well as increase foreign direct investment.
Another knock on effect may be an increase in foreign businesses establishing regional bases in Qatar meaning increased demand from expatriates and market witnessing more transactions, the Qatar edition of the first-ever Propertyfinder noted.
The biannual ‘Propertyfinder Qatar Trends Real Estate Report 2018’ of must-know data and analysis on the real estate market in Qatar said Qatar’s volume of real estate transaction remains with the potential for further growth.
There is a significant downward pressure on price due to the economic climate and additional real estate supply. Landlords and owners are reacting to this dynamic to ensure the best price whilst differentiating themselves from other similar property offerings, such as offering free rental months and free utility bills. Investors have been able to take advantage of longer term capital gains whilst others are now taking the opportunity to start looking for their next home as ownership becomes more affordable.
Upgrading homes, moving to more desirable areas, and even entering home-ownership for the first time is becoming a reality for many. This means that whilst commissions may have a lower monetary value, the volume of transactions remains strong with the potential for further growth, according to Propertyfinder.
Lusail and Msheireb are good examples of new, attractive areas for consumers in Qatar. Interest in these areas and additional emerging neighbourhoods, such as Al Sakhama and Umm Salal, have seen steady increases in consumer interest.
Whilst not matching the most popular areas, having the options of new locations, community and pricing is only a good thing for the Qatar real estate market. The most popular areas continue to be The Pearl, Al Sadd, and West Bay for apartments, and Al Waab and Abu Hamour for villas. As for the sales market,
The Pearl continues to top the list, along with West Bay and West Bay Lagoon. It will be interesting to see how quickly the new areas such as Lusail and Mushireb gain ground on these current leaders.
The report said cities outside of Doha continue to offer lower prices for villas, and more renters continue heading out to areas such as Al Wakrah, Al Sakhama and Al Khor.
However, over the past year, neighbourhoods in Doha have also lowered their prices, and areas like Ain Khaled and Al Aziziyah are now offering budget-friendly villas. West Bay Lagoon and Al Waab continue to offer luxurious villas that come with a higher price tag.
While a decrease in price is the main trend for villa rentals, one of the few areas to witness an increase in price is Al Markhiya, jumping from QR39 per square metre in Q1 2017, to QR46 in Q1 2018, an 18 percent increase.
In Doha, West Bay Lagoon and The Pearl, freehold areas known for lavish beachfront homes, carry some of the highest price tags in Qatar. Moving beyond the capital, Al Wakra and Umm Salal are areas where buyers can find affordable villas.