Real Estate
From The Report: Qatar 2012
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While the real estate sector has experienced a lull in recent years, property prices have remained stable over the past 12 months – a significant improvement on three years ago when prices were in freefall. The sector has recovered from the global economic crisis, and government plans to expand the non-hydrocarbons sector bode well for the market. In addition, new luxury real estate developments are expected to come on-line throughout 2012, indicating there is still sufficient demand for high-value property. Furthermore, bank credit to the sector grew 91.5% from October 2010 through October 2011. The sharp increase and still relatively low penetration levels imply that the majority of credit is going to the commercial segment, and that there is room for expansion in the sector as a whole.

This chapter includes interviews with Abdulla Abdulaziz Turki Al Subaie, Group CEO, Barwa Real Estate Company.

Articles from this Chapter

Overview

Bouncing back: The market seems on track for growth as demand is set to pick up
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While Qatar’s real estate sector experienced a lull in recent years, the first signs of growth are beginning to show, with an uptick in transactions and a discernible increase in bank credit available to the sector. Pricing in the market has remained largely flat for the past 12 months in most segments, a significant improvement on three years ago when prices were in freefall and distressed sales were the order of the day. These developments suggest that the market has weathered the worst of…

Interview

OBG talks to Abdulla Abdulaziz Turki Al Subaie, Group CEO, Barwa Real Estate Company
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Interview: Abdulla Abdulaziz Turki Al Subaie What is your assessment of investor sentiment regarding the property market? ABDULAA ABDULAZIZ TURKI AL SUBAIE: Investors generally feel very positively, as the real estate sector is set to grow, presenting many opportunities. The budget announcement for 2012-13 shows the country’s strong economic base and the large amount of expenditure, which is backed by an influx of hydrocarbons revenues. Additionally, there is an effort to diversify the economy…

Analysis

A broader scope: Qatari developers continue to invest in major international projects
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Wealth generated from Qatar’s newfound hydrocarbons has not only been put toward the development of the local economy, but has also been invested abroad through the country’s sovereign wealth funds. This move, which aims to ensure long-term revenues from the latest oil and gas windfall, has led Qatari sovereign wealth funds to eye overseas property investments. While the government, private investors and developers have been building the country at home, they have also been looking for bargains…

Analysis

Credit where it’s due: Homebuyers may begin taking out mortgages at higher rates
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While Qatar’s projected demographic and economic growth should provide robust demand for property over the coming years, the most significant shift in the market could be the result of a stronger and more consistent uptake of credit. Indeed, many developers and brokers are hoping for improved conditions for mortgage growth. This would increase the potential market for property on the peninsula and expand the range of offerings on sale. Qatar’s mortgage market is still underdeveloped. While…

Analysis

Shifting priorities: Developers look to secure end-buyers and address a market imbalance
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For real estate developers who are used to wide margins and off-plan sales, the current market in Qatar is proving to be trying. In a post-crisis environment where demand has been significantly depressed, particularly in sales, it has been difficult for developers to shift units. The last 12 months have therefore been a period of reflection and readjustment for most developers, with belt-tightening a priority for many. MARKET PRICING: The change in Qatar’s real estate market since its high…