Land prices in Qatar have risen by 15 per cent this year as demand for residential, commercial, tourist and services facilities increases.
Qatar property prices slumped in the aftermath of the global financial crisis, but there are signs that they are now starting to pick up again as interest in the country’s housing market improves. Much of the increased interest is being fuelled by overseas investors who are eyeing the country as a promising investment destination as it gears up to host the 2022 Football World Cup.
“Every single asset class is seeing growth. There is a potential for oversupply but at the moment the market is stable,” Matthew Green, head of research at real estate consultancy firm CBRE – who carried out the research – was quoted as saying. “The residential market will see around 25 per cent growth from its current stock level by 2016/17. It’s the same for hospitality – the number of key hotels is going to double over the next four- to five-year period.”
Just last week Qatar Diar, the real estate arm of the Gulf state’s sovereign wealth fund, pledged US$7.1 billion of financial support for its ailing property firm Barwa Real Estate, taking control of some of the company’s key developments.
One such development is a US$5.5 billion island off the coast of Doha, which will feature luxury villas, a water park, and five floating hotels and is being built to house many football fans who are expected to flock to the country for the World Cup.