Analysts anticipate a Qatari real estate boom that could see
prices rise by 30 percent in the next five years and 50 percent in the year
leading up to its hosting of the World Cup in 2022.
“In the next five years there could be a 25 percent surge,
and [up to] 30 percent in the next seven to eight years. Then when it comes
down to 2021, there’ll a lot more coming in,” Sam Youssef, managing director for
Better Homes in Qatar, said in an interview with Arabian Business.
“In the 12-18 months preceding the event there’ll be huge
rental and price inflation in the region of 30 to 50 percent,” added Mark
Proudley, associate director for real estate firm DTZ Qatar.
Though Doha will remain the core for development, Youssef
said the entire country would reap benefits, particularly cities like Al
Sharma, north of the capital, which will play host to game venues.
“A lot of people are starting to buy property where the
stadiums are going to be – it’s not just Doha,
it’s all of Qatar,”
he said. “Near the metro too, and that’s going to be built across the country.”
“Some of the locations – like Al-Shamal, which will have a
stadium – a lot of people have never even been to it and it’s very close to Doha,” Proudley said. “I
think there’ll be a lot of growth there.”
The residential market in Doha is currently experiencing a
short-term momentum boom.
“What we’re seeing in the last two weeks is speculation that
has led to people quoting prices more than 10 to 20 percent over where the
market was pre-announcement,” he said.
“Landlords have raised their quota range on the back of the
announcement. Those figures will settle down after six to 12 months once people
realize that the Cup is still 12 years away.”
He also expected substantial growth over the five-year
period. “If you look at previous major sporting events, there’s always been a
growth five years after the announcement,” he said. “This is 12 years in
advance, which is almost unheard of - it’s usually announced six years or so
before. That’s why we don’t think there’s going to be much impact over the next
two to three years.”
Craig Plumb, head of MENA research at Jones Lang LaSalle,
said that over time, the announcement could lead to Qataris themselves making
investments in their country.
“You have to look at the implications and how it’s going to
lead to growth in Qatar – there’ll be a growth in national pride and sentiment
that will increase a demand for residential property, but [growth] is not going
to go one-in-one with the announcement,” he said. “It’s going to take some time
to digest the announcement. There’s lot of planning and thinking going on.”
Youssef said that he was already getting “more and more
requests” from developers in Dubai, Kuwait, India and even Russia.
They’ll contribute to the spike that will come mainly from
an increase in additional retail space and hotels needed for the Cup.
“The market… is not likely to have any additional
requirement for residential accommodation,” Plumb said. “It’s much more about
putting Qatar on the map and
as a city.”
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