Real Estate
From The Report: Qatar 2015
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Property prices are on the up in Qatar, as are profits for listed real estate companies. Lending to the sector is also growing, with credit facilities worth $34.4bn at the end of 2014, the largest share of commercial banks’ loan book. The upward trajectory of residential rents is also gaining pace. After rising 7.9% y-o-y in August 2014, rents increased by 8.1% in September and 8.3% in October of that year. Meanwhile, Doha’s grade-A office stock, which totalled 2.5m sq metres in 2013, is set to increase when another 300,000 sq metres comes on-line in 2015. Demand is expected to hit 3.4m sq metres by 2019. Elsewhere, the size of the retail sector is expected to triple by 2016, with another 14 malls due to enter the market, bringing the total to 1.7m sq metres of shops.

This chapter contains interviews with Turki Mohamed Al Khater, Chairman and Managing Director, United Development Company; and Omar Hussein Alfardan, President and CEO, Alfardan Group.

Articles from this Chapter

Overview

Qatar’s infrastructure projects aim to consolidate growth story
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In 2014 Qatar’s real estate market officially surpassed its 2008 highs, with rapid expansion driven by a growing population, shrinking average household sizes and a shortage of available units in the residential sector. This expansion has not been painless, with rental and land price inflation putting the market, and wider economy, at risk of overheating. Determined to develop the industry sustainably, the government moved in 2014 to introduce legislative reforms aimed at strengthening…

Interview

Turki Mohamed Al Khater, Chairman and Managing Director, United Development Company: Interview
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Interview:Turki Mohamed Al Khater Given the ongoing growth in the expatriate labour force, to what extent have developers shifted from selling properties to leasing them? TURKI MOHAMMED AL KHATER: The combination of rapid population growth and higher GDP per capita has resulted in strong demand for housing, pushing up both real estate sales and rental prices. The demand for residential properties is focused around the Diplomatic District, the West Bay area and The Pearl–Qatar (TPQ). In…

Interview

Omar Hussain Alfardan, President and CEO, Alfardan Group: Interview
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Interview:Omar Hussain Alfardan Which segments of the real estate market are currently the best-performing? OMAR HUSSAIN ALFARDAN: While all industries are performing well, the real estate sector – one of Qatar’s most important non-hydrocarbons sectors – is considered to be the most vibrant. Given the country’s steady population increase, the residential segment continues to climb, driven by rising demand. This segment offers significant investment opportunities, as private developers…

Analysis

Qatar’s retail space set to expand
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With Qatari residents benefitting from one of the world’s highest levels of GDP per capita, and enjoying the resultant disposable income, demand for new retail space has reached historic highs. The retail segment is set to welcome more than 1m sq metres of net leasable area (NLA) before 2020, adding much-needed space to a fast-growing market, with long-term sustainability expected on the back of strong population growth and a consumer preference for high-end facilities. CURRENT SUPPLY…