Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Qatar land price surge threatens profitability

by

DOHA Jun 01, 2015 - 12:00 am GMT+3
by Jun 01, 2015 12:00 am
Land accounts for about half the value of real estate sales in Qatar, 10 times that of developed markets, as prices surge to levels that may make even high-margin luxury developments unprofitable to build, experts say. Qatar allows foreign freehold property ownership in specific zones, although the real estate sector remains in its infancy and local investors often prefer to trade land rather than develop plots. FIFA's selection of Qatar to host the 2022 World Cup has exacerbated this trading, although population growth and a broadly buoyant economy are the main drivers of the land boom. The central bank's Qatar Real Estate Price Index, which includes land, villas and residential buildings, hit 271.3 points in March, up from 194.5 in January 2014. Unlike neighbouring Dubai, where property has gone from boom to bust to partial boom again and prices are still about a fifth below the 2008 peak, locals and other Middle East nationals are the main buyers of Qatar's freehold units. "Land prices make it difficult to develop low- to middle-income housing and in some areas speculators have pushed up prices to levels where it's not financially viable to develop any kind of property there," said Mark Proudley, DTZ Qatar Associate Director, estimating rents rose 5-10 percent in some areas in recent months. "There's an accommodation shortage across all sectors, but it's probably felt most keenly in the lower- to middle-income segment. The supply pipeline is mostly for higher-end projects."

The dominance of government and semi-government developers has left little room for the private sector, said Abdul Mohsen al-Hammadi, chief executive of Dubai developer Manazil Group. "Even in residential areas, you're talking about (land prices) triple that of Dubai, therefore the return on investment is very low," he added. In the first quarter of 2015, real estate transactions in Qatar were worth 26 billion riyals ($7 billion), up 50 percent from a year earlier, Deloitte estimates, although this includes many transactions between government entities.
About the author
Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University
  • shortlink copied
  • Last Update: Jun 01, 2015 11:12 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    business
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    World's biggest Motorcycle Trade Show EICMA 2021 opens doors
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021