Qatar calling

Dominic Ellis travels to Qatar and finds out why the gas-rich emirate is fast-becoming the epicentre of large-scale projects across the Gulf.

A few years back, Qatar, in a clear desire to differentiate itself from Dubai, started billing itself as the "Monaco of the Gulf." Now we're told "Venice is now in Qatar," with the slogan accompanying the recent launch of the water-friendly Qanat Quartier district on The Pearl-Qatar.

The energy-rich Gulf State continues to drill deep into the marketing well to position itself as the most upmarket destination in the Gulf.

On current evidence, you'd have to say the strategy is working. Within the first half-hour of properties within this one low-rise precinct being released, they'd all gone, grossing US$412m in sales.

Architects Andre Lategan and wife Rebecca Gernon were among the buyers, in a clear show of confidence. Residents will hop about on water taxis, which will be berthed at different canals, while private owners can berth their yachts on the island's exclusive marinas.

It's shaping up to be a pivotal year for Qatar's real estate market. A new rent law came into force in February, designed to check a further hike in rentals and help stabilise the inflation-prone market. Accommodation costs surged 29% in the year to September - much as it has in its neighbour Dubai.

It forbids landlords from raising rents for two years and regulates the sub-letting of properties. The establishment of a Rent Dispute Settlement Committee and rent offices for registering tenancy contracts are other important features of the new legislation. The rent freeze could help cut inflation by up to 40%, according to The National Bank of Abu Dhabi.

That was followed by the third Qatar Real Estate and Investment Exhibition in March, which attracted 70 exhibitors and more than 4,000 visitors globally.

The tiny state, which has the third largest gas reserves globally, is now fuelling up its real estate sector and the potential of the fastest-growing state in the GCC, whose real GDP growth is expected to top 14.3% this year and 13.5% in 2009, is now clearly being realised.

With Qatar's huge per capita wealth - at US$67,000, it's higher than the US - and record energy prices enabling revenues to be channelled back into infrastructure, tourism and financial services, then the investor potential is self-evident. Construction projects are totalling around US$82.5bn in the next three years.

Freehold is currently confined to four distinct districts and projects - The Pearl-Qatar, West Bay, Lagoon Area and Lusail. The Asteco Doha office reports around 60% of buyers are from the GCC, with the remainder from the US, Europe, Asia and Levant.

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