Jed Wolfe, Asteco's regional associate director for Saudi Arabia, Qatar and Bahrain, says the trend for both sale prices and rents was downward during the last six months of 2009.
"In general, purchasers and tenants were assessing the market, rather than transacting, to reacquaint themselves with market pricing. This is a positive sign and perhaps demonstrates the early signs of a return in consumer confidence.
"However, the enquiries were limited to the more experienced investors looking for opportunities to acquire properties at reduced prices; and from occupiers looking to benefit from a decline in rental levels." Jed says there will be a significant increase in new stock in 2010 with 1,200 apartments expected to be handed over in Q2 2010 by sub-developers working in the Porto Arabia precinct of The Pearl-Qatar. There were no off-plan transactions in the Doha real estate sector during the latter part of 2009. "We are unlikely to see a significant increase during the first and second quarters of 2010," says Jed. "Those developers that have benefited from securing contracts with suppliers and contractors at reduced levels since the height of the market in late 2008 will be able to pass this saving on to the consumer and offer products at more competitive prices, but at above the break even point.
"As these assets begin to come online, we may witness a return to off-plan acquisitions, but this is likely to be in the third or fourth quarter at the earliest."
So will sales prices and rents fluctuate considerably this year? Jed believes sales prices and rental rates will vary markedly due to the new stock. "Poorer quality and older assets that have in the recent past enjoyed strong growth are likely to perform poorly during 2010, compared to the new, higher quality product. This represents opportunity for consumers as they will have much more choice during 2010."
bpanicker@alnisrmedia.com
