13 MAY 2018
With low oil prices affecting markets worldwide, countries in the Middle East are turning their focus to sectors such as tourism, professional services, logistics and trade hubs and real estate, to diversify their economies.
As part of the economic diversification in Qatar, land, construction and real estate have become increasingly important, with the developments for 2022 World Cup leading the way.
Every week, Qatar is spending $500 million on the construction of stadiums, hotels, roads and sewage in preparation for the World Cup 2022. With such rapid development, the country is geared up for 2.9% increase in economic growth this year.
According to a recent report by ValuStrat, “2017 ended on a high note with the value of real estate transactions reaching QAR 32.7 billion, 20% higher than 2016”. With extensive projects planned in the country, the real estate market is seeing an incline.
This was also emphasised at this year’s Cityscape Qatar, the country’s largest real estate and investment event, which attracted thousands of visitors, investors and homebuyers, by exhibiting significant investment opportunities in the local and international property sector. Developers such as United Development Company (UDC) announced an additional element to the Pearl, Gewan Island, inclusive of three separate access points on the Pearl. UDC’s announcement caught considerable attention, as it offers new investment and residential ventures to both, local and international investors.
Another highlight of the event was Qatar Stock Exchange opening the dialogue of REITs and the method of establishing them in the country to bridge the gap between capital markets and investment strategy.
The market has remained robust during 2017 and continues to remain robust. Investor sentiment is positive, and Qatar’s self-sufficiency allows real estate to remain a major focus for experienced investors.