The entertainment and nightlife alternatives are numerous in the contemporary country of Qatar. Supercars, five-star hotels, and adrenaline-pumping shopping are all very regular. These opportunities are easy to find if you are an ex-pat making a high salary package. Due to its modest size and immunity from the majority of the economic and political unrest in the region, Qatar used to not be as well recognised as some of its Middle Eastern neighbours. Living in Qatar has never been easier than now with the abundance of properties available for sale and professionals like Real Estate Agents in Qatar. The FIFA event in Qatar, this is the best time for investors to make their move.
EMERGING PROPERTY TRENDS IN QATAR
As supply becomes more limited before the World Cup, we anticipate more upward pressure on apartment rents. Landlords are more likely to insist on 2-year leases to profit from rental price increases and mitigate the effects of declining demand in 2023. The expansion of “Freehold Zones,” which permits non-Qatari ownership of the residential estate in ten districts, has been the primary motivator for real estate investment recently. Apartment demand is projected to continue to increase in Lusail, West Bay, and The Pearl-Qatar as a result of the new law giving property owners residence rights.
Individual apartment buyers from outside who take advantage of the residency privileges provided by Law No. 16 of 2018 presently account for the majority of foreign investment in Qatar’s real estate industry. In the market, which is dominated by local buyers, big institutional investors still have a very small presence.
IMPACT OF FIFA ON QATARI REAL ESTATE
With an unparalleled number of residences, hotels, villas, shopping centres, and office buildings constructed between 2010 and 2022, the forthcoming FIFA World Cup has recently dominated Qatar’s real estate market. To prepare for the event, construction will stop in Qatar in the second half of 2022. After that, we anticipate a significant decline in the number of new projects starting until the supply is consumed and rental rates rise.
As a result of the nation’s impending hosting of the 2022 FIFA World Cup, Qatar will see a change in demand. According to Property Finder research, over the same period, Doha saw an average rental unit price increase of 23%, and Al Khor saw a price increase of 38%.
The analysis predicts that price increases will only last a short while and that demand will slightly decline the following year. There is a growing need for Properties for Sale in Qatar, specially serviced and temporary flats.
The Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup and businesses seeking staff housing are the key drivers of the Supreme Committee’s demand for leases, which has led to a claimed occupancy rate of 80% for residential flats.
Investors and first-time purchasers are now more comfortable making investments in the market because Qatar is at the forefront of one of the most popular sporting events in the world. The Ministry of Justice is also taking the required actions to make the market more transparent, which will pave the way for even greater investment in the near future.
THE RENTAL SURGE
Residents of well-known neighbour hoods claim they are being coerced into signing contracts with two-year lease terms and rent increases of up to 40%. Some residents claim they have been compelled to move even after many years of the tenancy because they are presented with rents they cannot afford.
In a nation with an 88% expatriate population and limited rates of house ownership, many hotels have been obliged to get long-term renters to leave to make accommodations for teams and officials, leaving locals with few options.
That has aided in reversing the property market’s downward trend following more than seven years of stagnant demand, during which entire structures lay empty as the market saw an influx of new housing, commercial, and hotel supplies.
According to latest data, first-quarter rents increased by 3.3%, aided by the recent increase in demand, while asking prices on the Pearl — an artificial island enclave favoured by white-collar ex-pats — increased by 19%. In Qatar, where prices are rising more quickly than in any other Gulf Arab nation, housing was the second-largest contributor to a June inflation rate of 5.4%.
For players, staff members, and other authorities, FIFA has reserved hundreds of guestrooms in hotels and the adjacent residences of those hotels. To secure around 60,000 flats for fans, local organisers have also reached agreements with property owners.