Supply of Doha homes now exceeding demand

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DOHA PROPERTY: About 5,000 new homes have entered the city's real estate market. (AFP)

The supply of new homes in Doha is now exceeding the Qatari capital’s demands, the latest research has shown.

Some 5,000 new properties have entered the market and construction activity still strong in many areas, but the city's population growth has not kept up the pace, according to a study by Century 21 Qatar.

The real estate firm said that sales and rental prices have fallen by as much as 35 percent since October 2008 in Doha.

“Such large supply number combined with economic slowdown led directly to a decline in residential demand and affected harshly the rental rates since the last quarter of 2008,” the Gulf Times quoted the report as saying.

The fall in demand has forced some landlords to reduce their rental rates by 25 percent, the paper said, while tenants are moving to more expensive properties that were previously out of their price range.

But, the study indicated that the market was heading towards “stabilisation at a slow pace”.

“Signs of recovery have been noticed during September with a relatively increasing demand for properties.

“Our sales department records indicate a remarkable recovery in terms of leased properties and number of inquiries last month.

“Though the decline in rental rates is still dominant; changes are now minimal and that will lead to a stable market eventually,” Century 21 said.

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READERS' COMMENTS

who wants to live in Doha
Posted by Ralph, dubai, UAE on Sunday 4 October 2009 at 13:10 UAE time


or Kuwait (see separate story in AB) for that matter, unless they work there??

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