Chief Executive Officers of several Qatari real estate companies and research experts affirmed the promising aspects for the real estate sector in the country in light of the strength of the Qatari economy, the wide scope of construction operations taking place in all regions, and the completion of many economic diversification plans within Qatar National Vision 2030, which makes it one of the fastest growing sectors, and the second after the energy sector.
In exclusive interviews with Qatar News Agency , the experts pointed out that these promising prospects for the sector are driven by the high domestic liquidity and huge spending in recent years on infrastructure and transportation projects, the rise in the state’s gross domestic product (3.4 percent this year), and the increasing number of tourists, which will lead to a positive impact on the various indicators of the sector’s performance in the coming years.
QNA’s interviews with these figures in the market shed light on the performance of the real estate sector during the current period, and expectations regarding the return on real estate investment during the current year, in addition to the response of local banks to provide banking facilities to real estate companies, as well as whether there is a need for mergers in the market, such as those witnessed in the local banking market, to create major real estate entities that can compete locally and globally.
In this regard, CEO of Qatari Diar Eng. Abdullah bin Hamad Al Attiyah told QNA in an exclusive statement that the real estate market in Qatar witnessed a state of recovery with the hosting of the FIFA World Cup Qatar 2022, and this recovery was accompanied by an increase in rental prices and occupancy rates, indicating that the State of Qatar aims to attract 5.6 million visitors in 2023 – twice the number it received in 2016.
Qatar also aims to achieve occupancy rates of 70 percent in hotel establishment by increasing demand and diversifying tourism projects in the coming period, he added, noting that if this number is accomplished, the attractiveness of the Qatari real estate sector will increase in the medium and long term.
Al Attiyah explained that the features of recovery were reflected in the city of Lusail, which is one of the most significant real estate projects of Qatari Diar. People witnessed the opening of several new projects in the city, including Lusail Plaza Towers (Al-Sa’ad Plaza), Lusail Boulevard (Darb Lusail), Al-Saif Towers and Lusail Stadium, in addition to many new hotels and tourist facilities, he added.
He also noted that occupancy rates have reached 100 percent in some of these projects, which reflects the strong demand for modern and qualitative projects in Qatar that depend on quality and sustainability.
In regard to current real estate investment returns and expectation for the rest of the year 2023, Eng. Al Attiyah said that the real estate sector is considered one of the important sectors that are currently giving good returns to investors in the market and acquires a large share in economic activity, as investors in this vital sector seek to achieve permanent profits and returns with the least risks. Real estate investments achieve a rate of 7 percent to 9 percent, as a return on investment, according to the type of real estate investment, the location, and the age of the property, he added.
Al Attiyah indicated that 2023 is a challenging year for the real estate sector, due to the increase in bank interest globally, as the real estate sector relies mainly on bank financing, pointing out that this challenge is expected to be temporary for a maximum of two years until the current inflation is overcome, and this applies to the global real estate market and not only to the State of Qatar.
Regarding opportunities for expansion and growth in the local real estate market, he said that the state took into account the concerns about the real estate scene after the 2022 World Cup – signing long-term contracts with real estate owners in order to preserve the stability of the real estate market after the World Cup. In addition to that, the state is making unremitting efforts to regulate and strengthen the real estate sector and support the continuity of recovery through legislative amendments that made it easier for foreign investors to reside and own freehold property in the State of Qatar, he added.
He noted that the Investment Promotion Agency of Qatar (IPA Qatar) shed light on the real estate sector as one of the sectors expected to attract foreign direct investment during the post-World Cup period, in line with the long-term goals of urban development, economic diversification and increasing the attractiveness of Qatar as an economic center, explaining that this will certainly generate opportunities for expansion and growth in the real estate marker in the medium and long term.
In regard to the need for mergers in the real estate market in the country, such as those witnessed in the local banking market, to create major real estate entities that can compete locally and globally, Al Attiyah explained that the merging of real estate entities will enhance its regional position, as the merger will complement the diverse experiences, increase the efficiency of the nascent entity, and enhance its ability to compete in the local and foreign markets – acquiring larger shares in the real estate market. (MORE)
Source: Qatar News Agency