By Alex Delmar-Morgan
Firm predicts the $14bn real estate mega-project will fuel demand bringing rent increases.
Rents in Qatar will rise over the next year as units from the $14bn real estate mega-development The Pearl hit the market and fuel demand, property broker LifeStyle Homes predicted on Tuesday.
Properties in Qatar are also expected to hold their value well compared to other GCC countries, the company said.
“While the initial panic created by the economic crisis led to selling of some properties, the value of high quality projects in Qatar are expected to remain higher as opposed to the rest of the GCC countries,” LifeStyle said in a statement on Tuesday.
“It is also forecasted that the beginning of 'handing over' apartments on The Pearl-Qatar will act as a driver to increase rental rates, which will in turn lead to a healthier market and increased consumer confidence,” the broker added.
Rents and prices in Qatar have dived in the last eight months amid tight liquidity and weak demand.
But a recent study by Kuwait-based asset manager Global Investment House forecast Qatar rents in 2010 to increase as more residential apartments come online and the two-year rental freeze ends.
The 4m sq m island mega-project The Pearl-Qatar in Doha will provide around 15,000 homes and will also allow foreigners freehold ownership rights.
Does Qatar actually want rents to increase fueling inflation and making market unattractive? Haven't they learned anything yet from this crisis or is crisis on its way to Qatar. Qatar seemed to get happy in having rents increase coming. Stop and learn before you accelerate further.
In a feat of scientific brilliance increasing demand will raise rents. Tell that to your buddies in Dubai, who will flock in droves to Doha to partake in the new gold rush. Estate agents should stick to applying perfume, signs and polishing their pink Cadillacs and keep away from commenting on matters market. The renters will also be so depressed to hear that given the choice of new places to live they will have to pay more for their old hovels.
Can someone explain how releasing thousands of new units onto an already over saturated market can possibly force rents UP !. Seriously how is that possible. The reality on the ground is that rents have been falling steadily for some time now. The increases seen in GDP have not translated into housing demand at anything other than the bottom end of the market. At a guess I would say that the author of this piece is invested heavily in the Pearl and would like to off load some of his assets. The local banks recently declared the property market DEAD in Qatar by selling all their property portfolios to the banks. Would they have done this is they thought the assets were worth anything. If brand new 3 bed Villas in the City are starting at 12,000 rials a month can someone explain how a small 2 bed flat would ever command a level higher than that ?
Does anyone know if Piazza 2, Lusail will ever be built? Completion was first mentioned as April 2010. We thought it a good investment, but now feel rather worried to say the least. DAMAC are not very forthcoming with information.