Retail real estate and hospitality sectors have been witnessing significant growth over recent years and a record boom is projected this year, according to the latest Ezdan Real Estate report.
These highs are expected to become robust with the opening of new major commercial malls and international hotel chains in Doha. The report highlighted projections that the Qatari market is gearing up to accommodate a number of major malls and consumption complexes in 2020 over an area of nearly 548,000sqm. The retail sector is rapidly increasing as a result of the soaring purchasing capacity of locals and residents in Qatar in addition to the country’s attraction to brands.
Ezdan’s monthly report states that the hotel real estate sector will witness its highest-yet boom as the 2022 World Cup approaches, thanks to the openness policy adopted by Qatar, aimed at attracting thousands of tourists. That includes new legislations as well as sports events, conferences, and forums, in addition to the annual state-organized festivals.
As per the 2030 strategy planned by the National Tourism Council, Qatar plans to attract 5.6 million tourists by 2023. Investment in the tourism sector is expected to increase to reach $4bn by 2028, while tourism share in GDP will reach $36.57bn. Tourism and hospitality sectors are expected to witness a significant boom as a result of fulfilling the Fifa requirements of providing 60,000 hotel rooms by 2022.
The monthly real estate report highlighted the settlement of 10 new construction contracts for road and infrastructure development projects on citizens’ owned territories, with a total value of about QR4bn, to serve more than 8,400 housing plots in ten regions across the country. These are expected to contribute significantly to the construction boom in Qatar and push the real estate price index to continue rebounding. The Public Works Authority is also proceeding with its plan on 22 infrastructure projects for citizens’ lands, at a total cost of QR9.55bn, serving 11 regions with 20,728 allocated housing vouchers.
The new reforms introduced by the Ministry of Municipality and Environment to the e-system of applying for building permits, certificate of construction completion, and procedures for service delivery, are expected to enhance construction activity. The new reforms are expected to enter into force by February, which will positively reflect on the growth of construction activity during the year,
The completion of the draft law on urban planning, which is expected to be declared by the middle of this year, will also bring significant reforms during 2020 and trigger a boost in the urbanization in Qatar, the report added.
Real estate price index soared during the past week, with 59 property sales deals in seven municipalities worth more than QR2bn. Three major deals worth QR1.3bn, and equivalent to 62 percent of the total transaction volume, were closed in Wukair during the week.
The three groundbreaking sales deals drove the real estate price index from January 12-16, stimulating forecasts for a promising market and booming real estate activity in 2020, especially in the southern region which is witnessing a boom in urban development with the implementation of giant infrastructure projects, such as road broadening and construction of thousands of housing units offered at competitive prices.
Doha also witnessed significant deals in Dafna area with the sale of a multi-use building over an area of 4,232sqm at a relatively high square foot price of QR8,342, with a gross value of QR380m, in addition to the sale of a residential building constructed over 7,674sqm, at a square foot price of QR1,259, totaling QR104m.