Qatar
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The Qatar Property Market
Source: Oxford Business Group
Tremendous growth translates into strong real estate activity
Qatar is another Gulf country hoping to diversify its economy away from oil. Its proven reserves, with more than 5% of the world's natural gas, are expected to last for more than 40 years. The sector accounts for 60% of GDP, 85% of export earnings and roughly 70% of budget revenues. Hydrocarbons have given Qatar the highest GDP per capita in the Gulf, which stands at an impressive $62,914, while real GDP has risen to a record $52.7bn in 2006, with a nominal growth of 24.2% over the previous year.
According to the last census carried out but the Qatar planning council in 2004, the country's population stood at 744,029, with an annual increase of 5.3% between 1997 and 2004. Foreign workers account for an estimated 75% of the total population, with the majority of migrant labourers coming from South Asia, the Philippines and other Arab countries. 46% of the country's population is concentrated in Doha, with a number of smaller centres distributed across the country.
8.8% economic growth in 2006 was attributed to the ongoing oil boom, expanding gas sector activity, increasing foreign direct investment, major construction projects and public infrastructure programs. The construction and real estate sector commanded 5.4% of GDP at output valued at $37.8bn in 2006, growing at a rate of 17%.
Between 2003 and 2005 a total of 11,900 buildings were completed and 10,700 licenses were secured. However, these figures are nowhere near sufficient to satisfy the extreme levels of demand in the country. A demand for space soared across all property segments as a result of high income levels, rapid population growth and a huge influx of expatriates. While demand has increased for real estate, shortages of construction materials and capacity have sustained pressure on supply.
A foreign ownership law in 2004, which gave the green light for the Pearl, West Bay lagoon and Al Khor to offer property for sale to foreigners, has sparked foreign investments and prompted for sale to foreigners, has sparked foreign investments and prompted new businesses to set up in Qatar.
There are now 18 special investment zones in the country where ownership is technically permitted as a form of long lease. A second stimulant has been the growth in the mortgage market. Up to 80% financing is available on residential property at interest rates of less than 10%.
Key developers
Key real estate developments in the peninsula include the Pearl, West Bay Lagoon, Al Khor and the Lusail project. At almost 4m sq. metres of artificial island, the Pearl is the showpiece real estate development in the country. The United Development Company is offering homes on a freehold basis to approximately 40,000 international residents in 15,000 units. There are also plans for three five-star hotels with a total room capacity of 800. Take-up on the project is strong with delivery on units beginning in 2997. The project planned for completion by 2010.
Main | Residental | Commercial | Hospitality | Retail
The Qatar Property Market
Source: Oxford Business Group
Tremendous growth translates into strong real estate activity
Qatar is another Gulf country hoping to diversify its economy away from oil. Its proven reserves, with more than 5% of the world's natural gas, are expected to last for more than 40 years. The sector accounts for 60% of GDP, 85% of export earnings and roughly 70% of budget revenues. Hydrocarbons have given Qatar the highest GDP per capita in the Gulf, which stands at an impressive $62,914, while real GDP has risen to a record $52.7bn in 2006, with a nominal growth of 24.2% over the previous year.
According to the last census carried out but the Qatar planning council in 2004, the country's population stood at 744,029, with an annual increase of 5.3% between 1997 and 2004. Foreign workers account for an estimated 75% of the total population, with the majority of migrant labourers coming from South Asia, the Philippines and other Arab countries. 46% of the country's population is concentrated in Doha, with a number of smaller centres distributed across the country.
8.8% economic growth in 2006 was attributed to the ongoing oil boom, expanding gas sector activity, increasing foreign direct investment, major construction projects and public infrastructure programs. The construction and real estate sector commanded 5.4% of GDP at output valued at $37.8bn in 2006, growing at a rate of 17%.
Between 2003 and 2005 a total of 11,900 buildings were completed and 10,700 licenses were secured. However, these figures are nowhere near sufficient to satisfy the extreme levels of demand in the country. A demand for space soared across all property segments as a result of high income levels, rapid population growth and a huge influx of expatriates. While demand has increased for real estate, shortages of construction materials and capacity have sustained pressure on supply.
A foreign ownership law in 2004, which gave the green light for the Pearl, West Bay lagoon and Al Khor to offer property for sale to foreigners, has sparked foreign investments and prompted for sale to foreigners, has sparked foreign investments and prompted new businesses to set up in Qatar.
There are now 18 special investment zones in the country where ownership is technically permitted as a form of long lease. A second stimulant has been the growth in the mortgage market. Up to 80% financing is available on residential property at interest rates of less than 10%.
Key developers
Key real estate developments in the peninsula include the Pearl, West Bay Lagoon, Al Khor and the Lusail project. At almost 4m sq. metres of artificial island, the Pearl is the showpiece real estate development in the country. The United Development Company is offering homes on a freehold basis to approximately 40,000 international residents in 15,000 units. There are also plans for three five-star hotels with a total room capacity of 800. Take-up on the project is strong with delivery on units beginning in 2997. The project planned for completion by 2010.
Main | Residental | Commercial | Hospitality | Retail
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