Real estate property developers and contracting companies are bullish about the performance of the Qatari market, especially for the housing and residential segment, for 2020 and beyond.
The residential property market is expected to rebound and witness sustained growth on the back of a steady rise in population and continued government support, especially in the form of massive spending on infrastructure development, investment in energy-related projects, and huge spending on the social sector such health and education.
‘Qatar’s real estate market is more robust and vibrant compared to other markets in the region. The market volatility over the last couple of years was temporary, understandably due to some apprehensions among investors about the geopolitical situations, which had some impact in the 2018 and 2019, but now things are much better and demand is picking up which is expected to be accelerated in the immediate future, Mohamed Amer, General Manager at Al Hattab Holding, told The Peninsula.
Amer added: ‘The boom and bust is part of an economic cycle. But with the government’s firm commitment to support the market with continued investment and massive spending in major projects, the real estate market is expected to rebound further in 2020 and beyond.
He admitted that 2018 and 2019 were challenging years but it was more challenging for big companies that were not to able maneuver and flexible enough to absorb the market conditions accordingly. But the small and medium-sized companies like Al Hattab Holding were able to find business new opportunities and focused on a smaller project to deal with the situation.
The real estate deals are the main gauge of attractiveness of any real estate market. The combined value of real estate deals stood at QR22.8bn in 2019, reflecting the strong interest of investors in Qatar’s growing market.
Deals worth QR1.58bn were inked in December 2019, compared to QR1.55bn the previous month, showing a growth of around two percent.
October emerged as the busiest month as it witnessed deals worth QR4.36bn, making it a month with the highest value of deals during the year.
Figures for January and February (2020) transactions are not readily available, but the value of real estate transactions signed during the last week of January (26-30), 2020 stood at QR307.3m from 91 deals, according to official data.
Amer noted that as the Qatar 2022 FIFA World Cup dates are fast approaching, the preparations, especially the pace of construction and development have accelerated.
‘2020 started very well for us. We already have projects worth QR100m in hand and expecting to sign at least another QR200m worth of projects during the year 2020, which will be good enough to maintain our robust performance, said Amer.
Some analysts also suggest that bold economic reforms, coupled with other developments, such as the opening of Doha Metro and the newly promulgated National Address Law, will also help boost the real estate market in a big way. Many believe that the address law, which mandatorily requires every resident to provide their registered residential address, is expected to have a positive impact on the real estate market as people, who might be living in illegally partitioned villas will have to move out and sign new housing contracts to complying the law, thus will create additional demand of housing units.
Amer also noted that the places which have developed utilities and public facilities such as shopping centers and Doha Metro connectivity, etc will see major boost than other areas.
Al Hattab Holding showcased some 40 construction designs that can provide the estimated construction cost for a building in advance. The cost may vary depending on the types of finishing, materials and other specifications a client chooses. The company offers integrated housing solutions, including the design and approval fees for the municipality and other services.
The Company also buys plots of land and develops buildings and compound villas from scratch for sale to Qatari customers. And also, there are some non-Qatari customers who are buying plots in some areas and developing residential buildings.
The company is developing nearly 100 villas and a market which are to be finished within this year. And it is also in the process of developing a big school in Qatar, but did not provide further details about it.