Qatar real estate prices decline 40-70% since Sept

The real estate prices in Qatar have dropped by 40-70 percent from their levels last September, the Emirates Business daily reported on Monday.

Citing the results of a survey conducted by Aswaq.net of Al Arabiya television, a state of stagnation and anticipation prevails in the LNG exporting nation, the daily said.

The survey was conducted applying price data supplied by a number of real estate brokers. It revealed that the price of land allocated for construction of villas in Doha declined by around 50 percent while prices of villa land outside the capital dropped by 65 per cent to 70 per cent.

Villa prices are down by almost 35 percent. A villa of 400 sqm inside Doha is now sold for QAR2m ($549,390) from QAR3m ($824,085).

Brokers told Aswaq.net that Qatar's real estate market is witnessing an unprecedented state of stagnation, eight months after the outbreak of the global financial crisis, the Emirates Business added.

Last week, Colliers International, the global real estate consultancy, had released the GCC Overview Report, which indicated that the impact of the global economic and financial crisis on Gulf real estate markets has been swift and dramatic leading to a decline in real estate capital values and rents.

According to the report, in Doha, the rentals for newly constructed office space have softened by 10%-15% over the last four months. The sales of residential properties have collapsed due to the lack of finance and a wait and see attitude on the part of buyers, the report added.

The total shopping mall supply is still on track to increase by 100% between Q1 2009 and Q4 2010, it said. According to consultancy, $17bn has been earmarked to boost the infrastructure for tourism over the next five years in Qatar.