A steady growth in population in Doha has increased the demand of low to mid-income bracket accommodation, and with rental prices stabilising in the prime residential market due to growing vacancy, there is a significant opportunity within the tertiary market sector.
“These are interesting times for Qatar,”says DTZ Qatar’s new Residential Agency Head, Bashir Jama. “On one hand, developers have tended to be drawn towards the upper and prime housing sector, whereas the real opportunity presents itself in the demand/supply gap in the lower end of the housing market.The difficulty is the price of land; developers focus on the higher end markets as the high-end market is perceived to provide higher returns.”
This adjustment in the residential market stems from a growing inventory of stock as well as corporate decisions made following recent budget announcements. However DTZ Qatar, who in November opened their dedicated Residential Sales and Leasing Office in Medina Centrale, The Pearl remain extremely upbeat about the residential sector. “As an advisory, our job is to help both landlords and tenants find the optimal solution for their needs in any market,”continued Jama.“We now have a superb office in Medina Centrale on The Pearl where our knowledgeable team can discuss every need and expectation of our clients as their requirements evolve.”
Edd Brookes, General Manager of DTZ Qatar, commented: “The Qatari real estate market continues to grow and adapt to changing economic conditions. The country is growing at a rapid pace with world class infrastructure well ahead of schedule. We are accustomed to market fluctuations in the ten years that we have been present in Qatar. The country’s landscape has changed immensely since our market entry and there remains a huge opportunity within the Real Estate market, as the population continues to surge. The market must be allowed to reconcile these changes, which will encourage the private sector to provide sustainable solutions.”
Rents for three-bedrooms in Doha’s prime residential market have stabilised at QAR 19,500 by the third quarter of 2015, which is the same price as the previous year. Two-bedroom apartments in this market segment have also remained steady at QAR 15,500 between 2014 and 2015.
Categories: