Still an important and robust driver of non-hydrocarbons growth, Qatar’s real estate sector is nonetheless beginning to feel the impact of falling oil and gas prices, which have negatively affected the office and residential markets. There are also rising concerns about an oversupply of high-end residential and commercial space, with dozens of new projects still in the pipeline expected to come on-line in the medium term. Oversupply will be a major long-term concern for nearly all segments of the market, with the stock of retail, hotel and office space surging as developers rush to capitalise on population growth and rising tourist arrivals. Despite these challenges, smaller transactions have kept the market steady in early 2016, and although land prices and rental rates remain high, muted economic growth should help reduce inflationary pressures that have priced many middle- and lower-income families out of the market.
This chapter contains an interview with Abdulla Hassan Al Mehshadi, CEO, Msheireb Properties; and Ibrahim Jassim Al Othman, President and CEO, United Development Company.