DTZ: Qatar Real Estate Report April 2011
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The road to home finance has been a long one for the Kingdom, but with its highly anticipated mortgage law edging ever closer to ratification, would-be homeowners and financial institutions are gearing up for a new era of opportunity.
With the announcement this year of a US$66.7 billion initiative to address the demand-supply imbalance in the Kingdom’s housing market, social infrastructure spend is topping the Government agenda as it focuses on building affordable homes for the future.
The South-East Asian island has seen a number of distinctive developments come to fruition over the past few years as the country further establishes itself.
Qatar continues to benefit from strong economic performance driven by expansion in the production and sales from the hydrocarbon sector.
The successful bid to host the 2022 FIFA World Cup will act as a catalyst for significant Government investment in infrastructure and real estate development. That will not only enhance the real estate offer in Qatar but also give it a significant boost; creating employment, population growth and generating strong demand for all real estate assets over the medium term.
The office market, whilst continuing to suffer from an oversupply, has seen recorded levels of demand increase, led by Government sector activity. That has resulted in rents on prime commercial office properties stabilising over the latter half of 2010.
Demand for residential property has shown signs of improvement over the latter half of 2010. There are indications that rental levels are stabilising on the back of the increased demand, despite the level of new stock that has been released to the market.
There has been a sharp increase in the number of hotel rooms in Doha. That has been offset by demand for hotel accommodation, which remains strong driven by MICE tourism. These dynamics have brought stability to the occupancy and average room rates over 2010.
The retail market has recorded limited activity but remains comparatively strong and does not suffer from the oversupply characteristics at this time, which prevail in the commercial office and residential markets.
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