A number of real estate experts expected the real estate market in Qatar to regain its balance and activity in the second half of this year 2023.
They confirmed that the residential rental market began to witness a significant decline after the end of the FIFA World Cup, by rates ranging between 20 to 30%. Compared to the pre-World Cup prices, noting that the market is currently going through a price correction phase to reach its natural balance during the next two months. Experts pointed out to the significant increase in the supply of housing units, which affects the market positively in favor of tenants, and negatively for real estate developers and owners, stressing that extending the validity of the (Haya) card will contribute to revitalizing the real estate market, in addition to the tourism sector
At the outset, the expert and real estate broker, Mr. Saif Al-Nuaimi, says: There is great fear in the real estate market in Qatar, but it is not a fear of the market’s inability to continue and grow, as much as it is a cautious anticipation that prevails in the market after the end of the World Cup, especially with the huge increase in the supply of housing units. , which affects the market positively in favor of tenants, and negatively for real estate developers and landlords, and for the market to return to a state of balance and price correction, it will take a certain period to return to the pre-World Cup period.
He added: The rise in interest on real estate loans as a result of international developments contributed to restricting the movement of real estate developers, and this situation will continue during the first half of this year, if not until the end of the year.
Saif Al-Nuaimi pointed out that talking about a significant decline in the real estate market is far from the truth, as the real estate market will not witness a decline in the full sense of the word, except after three months, and during that period the tourism sector can play a major role in reviving the real estate market by attracting more visitors and tourists, benefiting from The atmosphere of the World Cup and procedures related to facilitating mechanisms for entering Qatar for family visits and tourists, as was the situation during the World Cup period, which witnessed a great turnout of visitors of all nationalities, especially since Qatar currently enjoys a diversified tourism product that meets the tastes of visitors and tourists of different cultures.
He called for focusing on the tourism sector during the coming period, especially since Qatar has succeeded in attracting family tourism due to its security, safety and many beaches, in addition to commercial complexes and malls that are full of international and local brands that attract tourists.
Drop
he expert and real estate appraiser, Mr. Khalifa Al-Maslamani, said: The real estate market – especially residential rents – witnessed a decline ranging between 20 to 30%, compared to prices before the World Cup, and the supply is now greater than the demand, explaining that this was expected.
He expected the market to recover in the second half of this year, because the current decline is a price correction and not a decrease in the known sense, because pre-World Cup prices witnessed a big boom as a result of the increase in visitors to the country during the World Cup period.
Al-Maslamani stressed that the market will quickly restore its balance, especially the residential rental market. As for commercial spaces, there has been no change, with prices per square meter ranging from 65 to 90 riyals in medium areas, and from 100 to 150 riyals for exhibitions, depending on the area in the area. Distinctive areas, main streets.
“Haya” Card
Real estate expert Mr. Fahd Abdul Rahman confirmed that extending the validity of the (Haya) card will contribute to revitalizing the real estate market in addition to the tourism sector, pointing out that the goal is the quality of arrivals and this issue requires integrated coordination between the concerned authorities represented in work, tourism and trade, in order to attract a quality of Tourists and visitors, as well as family visits that encourage the prosperity of the economic movement, in addition to the tourism sector.
He explained that the supply in the real estate market is already greater than the demand, yet the rents did not decrease as expected, but the prices are still maintaining their strength, and may decline in the second half of this year after the end of the current contracts.
He said: The real estate market will maintain its momentum to varying degrees, pointing out that the turmoil that the global economy is going through affects the Qatari market in one way or another, especially on the real estate and tourism sectors, and this in turn contributes to a slowdown in the market movement in general, and Qatar is not isolated from what is happening. In the world, especially in the banking sector, which issued controls on the financial facilities provided to real estate developers, which contributed to the weak movement of real estate construction in the current year, in addition to the state of caution that controls real estate investors at the present time.
Mr. Fahd Abdul Rahman called for the need for banks to provide financing facilities to real estate developers in order for the real estate construction movement to flourish, which contributes to the recovery of the real estate market, because the current strictness practiced by banks and financing institutions impedes the movement of real estate investment.
The real estate expert, Mr. Muhammad Al-Omari, said: He does not expect a significant decline in the real estate market during the current year, especially after the end of the World Cup in Qatar, as the market is still coherent and in line with the movement of the economy, indicating that the real estate market faced more difficult conditions before, but it overcame them thanks to its cohesion and the strength of the economy. diagonal.
He added: The real estate market may be going through a phase of relative decline in residential rents, which witnessed a significant rise before the World Cup, and will return to their normal levels, for the period before the World Cup, and this is called a price correction and not a decline. As for office and commercial rents, they are normal and did not witness a significant increase.
He stressed that there is a great demand for new villas in exchange for less supply, and the rental prices for villas range between 9 to 10 thousand riyals, and they have now risen to between 12 to 13 thousand riyals, due to the high demand in different regions.
Source: Al Raya Newspaper
