According to Colliers International’s Real Estate Market Overview of 2013, Qatar’s economy has become one of the most vibrant in the region and the World Economic Forum’s The Global Competitiveness Report for 2011-2012 has ranked Qatar 14 on the list of the world’s fastest-growing economies. Despite its GDP dip due to the financial crisis, the country has bounced back and the growth rate projected for 2014 is 6.8 per cent.
“The property market in Qatar is strongly influenced by rising demand due to the influx of expatriates and the spate of current infrastructure projects, which in turn is stimulating economic growth,” says Fahad Khalid Al Ghunaim, Chairman and CEO, First Qatar Real Estate Development. The firm that is developing projects such as La Riviera at The Pearl-Qatar.
The twin engines powering real estate expansion are the 2022 Fifa World Cup and the lucrative hydrocarbons sector. The said growth is evident in the numbers from Colliers. In 2010, Doha’s residential market had 23,185 villas and 74,370 apartments. According to government projections, an additional 60,000 units will be completed by 2020. With these projections, coupled with the current construction pipeline in the city, Colliers estimates cumulative residential supply in Doha to reach 138,235 units by the end of 2017, while residential demand will reach 242,000 units.
But there is no disputing that it was winning the bid to host the 2022 Fifa World Cup that put Qatar on the world map and helped prompt a huge infrastructure-building programme. “Current estimates are that the overall programme could cost in excess of $100 billion [about Dh367 billion] and will include a new airport, a new rail network, and an improved road network. The development associated with the World Cup is attracting a significant amount of expatriate professionals and workers, which is fuelling residential demand, and recent rental increases,” says Johnny Archer, Head of Valuation, Research and Advisory, Asteco Qatar.
