Interview: Abdulla Hassan Al Mehshadi
Has the local real estate industry implemented environmentally friendly and sustainable projects in line with national objectives?
ABDULLA HASSAN AL MEHSHADI: Msheireb Downtown Doha (MDD) was built on the concept of sustainability in line with Qatar National Vision 2030, and the project will have one of the highest concentrations of LEED-certified sustainable buildings in the region, making it the world’s first sustainable downtown regeneration project. With a 32% energy reduction goal, all buildings are targeting LEED Gold certification, with some targeting LEED Platinum. Streets within Msheireb are oriented to capture cool breezes from the Gulf and shade most pedestrian routes from the hot sun. Buildings are amassed to shade one another, and are light-coloured to reduce cooling requirements.
Abundant solar energy captured through photovoltaic solar panels and solar hot-water panels on rooftops will be used to generate electricity and hot water for buildings. Efficient irrigation systems and planting species native to the region, and adapted to survive in dry conditions, will reduce landscape irrigation requirements. Integration with Doha’s new metro, and a safe and convenient public realm, will encourage both cycling and walking. Placing of cars and service delivery vehicles underground in several basement levels will ensure a pedestrian-friendly atmosphere.
What effect has the fall in oil prices had on the rollout of real estate projects to date?
AL MEHSHADI: In general terms, Qatar’s shift towards a knowledge-based economy is well under way. The price of oil has always been volatile so this is not a new impact, and Qatar is well prepared for the fluctuations in the market. With that said, decreased revenues for the state will have some effect on overall development, in particular for projects that have not secured funding. Risk management will take on an even more important role in project planning going forward. We are certified in risk management and, as such, are making concerted planning efforts to forecast all types of risk in the sector.
Do you expect lower oil prices will impact future demand for residential, office and retail space in the market in the coming years?
AL MEHSHADI: From our own perspective, we view the future with great confidence. On the residential side, there is always a large appetite for locals to buy property in Doha, and we have already seen a keen interest for Qataris to buy residential property in MDD. This was even before we started a leasing campaign, which we expect to commence in the coming months. As one of the few areas in Qatar that is open to freehold investment from expats, we expect an interest from this segment as well.
Qatar has the potential to become a leading retailer in the region based on the amount of space upcoming in the market. Retailers will have to balance luxury-based retail with demand in order to strike the proper balance. International retailers remain interested in Qatar, as they recognise the importance of the local market. We have witnessed strong demand and will be announcing tenants shortly.
How are large-scale developments in the country addressing logistical issues, given the amount of infrastructure work under way?
AL MEHSHADI: One of the initiatives we have introduced in order to better understand how logistical challenges can best be met is our annual CEO Forum, where we invite all our partners to share knowledge and voice their concerns. This has led to a much closer level of collaboration and to greater efficiencies in terms of coordination. In terms of transport infrastructure, MDD clearly needs to integrate with both Doha’s and Qatar’s transport systems, as it will be a major hub for tenants and shoppers within the city.
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