Business Sector

Qatar Residential Real Estate

Marmore Team

11 February 2016

According to Marmore’s Qatar residential real estate report, the developmental activities in the country are expected to lead to huge influx of expatriates in the coming years, which along with the youthful demographics will lead to increase in demand for affordable homes.

Qatar-Realestate-fig1.jpg

The residential real estate market in Qatar is characterized by undersupply and the increasing demand is expected to add to the existing market pressure. Qatar is forecasted to add a cumulative supply of 22,000 units during 2014-2018 to the residential real estate market, a CAGR of 2%, while the demand is estimated to increase at 10% CAGR during the same period.
 
Doha has had one of the highest rental yields compared to world cities such as Dubai, Tokyo and New York, with the rental price index rising by 30% during the Jun’14 and Sep’15.

Qatar-Realestate-fig2.jpg

Qatar’s GDP growth rate is forecasted by IMF to remain positive during 2015-17 period, especially for the non-hydrocarbon sector, which is expected to grow at approximately 10% over the next three years, mainly driven by the growth in construction and real estate. According to Marmore’s Qatar residential real estate report, Real estate sector is expected to attract 49.2% of the total estimated USD 80.2bn spending until 2017.
 
The increased spending in real estate will help in creation of more housing units in affordable and high end housing segments.
 
The demand for housing units can be expected to increase as 85% of Qatar’s population comprises of non-nationals, with projects such as Pearl Qatar allowing free hold ownership for non-Qataris, which may lead to an increase in the sale price. Many of the expatriates in Qatar, especially the white-collared professionals, would be willing to invest in Qatar’s real estate and own dwelling units. Allowing free hold of property for expatriates in all major developments would boost the demand for residential units in the country.
 
Land prices in Qatar are high mainly due to lower supply available for residential construction purposes when compared to the GCC countries3. Higher cost of construction, shortage of manpower and low investor confidence are major challenges to the development of the real estate sector in Qatar.

Stay Tuned To Marmore MENA Insights!

Never miss a patch or an update with Marmore's Newsletter. Subscribe now!

Related Article

Green sukuk – An emerging asset class in the GCC

ESG Sukuk is gaining momentum in GCC with green and sustainability sukuk making up 80% of the green bonds issued till H1 2022.

Read More

Saudi Arabia’s diversification strategy rests heavily on Giga projects

The Giga Projects of Saudi Arabia are focused on diversification of oil revenue by unlocking new sectors for the economy with the core concept of sustainability.

Read More

Estimating the cost of FIFA World Cup 2022

The article takes a closer look at Qatar's spend on the FIFA World Cup 2022 and how hosting the event would benefit the country.

Read More

Tags

No Tags!

Share via

Downloads

Recent Insights

Card image

Green sukuk – An emerging asset class in the GCC

Read More
Card image

Saudi Arabia’s diversification strategy rests heavily on Giga projects

Read More
Card image

Estimating the cost of FIFA World Cup 2022

Read More