An estimated 25,000 new housing units are expected to come on the market by this year-end driven by rising demand, says a real estate development company. The demand for housing is forecast to grow between 20 and 25 percent in the second half (H2, July to December) of this year, according to Al Asmakh Real Estate Development Company.
“The demand for housing has been on an upswing,” the company said in a report. The rents of furnished apartments have already gone up by 15 percent in the first half of this year (January to date, as H1 closes on June 30) as compared to H1 of 2014, said the report.
The company, which is a major real estate developer, said an estimated 100,000 new housing units will be added to the existing stocks over the next four years.
The report did not, however, say how the rent scenario as regards housing will play out in the next four years. It, though, hinted that rising demand will continue to spur housing development inspired by FIFA 2022 World Cup-related infrastructure development projects.
A whopping QR250bn ($68.65bn) is expected to be the total investment in Qatar’s booming real estate sector over the next five years. “The construction boom will continue keeping real estate as the top performer among all the economic sectors in the country,” the report noted.
Land prices continue to spiral with expatriate-dominated working class localities in Doha like Najma, Al Mansoura and Umm Ghuwailina commanding high rates — QR1,900 per sq foot in Najma and Umm Ghuwailina and QR2,075 in Al Mansoura and the nearby Bin Dirham.
Land rates, based on real estate transactions that took place between May 31 and June 4, were QR1,200 per sq foot in Old Airport neighbourhood. In the sprawling suburbs, the rates per sq foot ranged from QR330 (Muaither) to QR440 (Al Rayyan), QR460 (Al Gharrafa), and QR420 (Al Laqta).
In far-flung towns such as Umm Salal Ali and Umm Salal Mohamed rates were QR300 and QR360 per square foot, respectively. Rates were almost the same in Al Thumama (QR510) and Al Mamoura (QR525 per square foot), said the report.
In the 18 designated residential areas where foreigners are allowed to buy real estate, a one BHK (bedroom, hall and kitchen) commands QR1m, a two BHK unit QR1.3m and a three BHK unit QR1.4m.
Per square metre rate of apartments in these areas averaged QR11,000 to QR12,000. In the Peral-Qatar, the apartment rate worked out to be between QR13,000 and QR22,000 per sqm on average and in the Towers area, it was QR12,000 per sqm on average.