The real estate sector in Qatar is expected to grow by 8 percent until 2019, with the building and construction sectors contributing the maximum growth, a report has said.
According to SAK Holding Group's monthly real estate report, the real estate sector in Qatar, which is the fastest growing sector in the Middle East, is still considered a "safe haven" for investments. "At the very least, (the real estate sector) is able to maintain initial investment value (and) meet all financial challenges revolving around the average expected returns," the report said. For years, the report added, the sector has been maintaining a certainty on average expected returns by injecting liquidity into investments in line with the levels of turnout and decline in the market.
"It reflected the stability and solidity of the sector." The report said the real estate transactions during the past month were constrained by special factors, such as Ramadan and the beginning of the summer holidays. "The overall performance of the first five months of this year is positive, which is expected to lead to subsequent growth and recovery in the second half."
According to transactions indices and reports, the total value of real estate transactions during May stood at around QR2.5 billion, down 10.7 percent from a month ago and up 25 percent from a year ago. As per SAK Holding, traditional investors in Qatar tend to favour investing in the real estate sector. The report stressed that the appetite of seekers of real estate opportunities has not been affected, because of a number of elements and advantages that support the stability of the real estate sector in Qatar, primarily the continuation of government spending on major development projects and major projects.
The report, however, said the stability of supply and demand in the sector faces an"unfair" test amid a noticeable glut in residential properties and steady increase in retail units. Office properties, which grew significantly from last year and stand at 620,000 square metres against an estimated 320,000 square metres, also face the challenge of finding new occupants. This growth was driven by strong demand from the public sector, especially in the West Bay area.
A good number of completed buildings was occupied and operated during the past two years by ministries and government institutions. On the other hand, office spaces in that particular area did not receive the same type of demand from the private sector. Now there are large vacant office spaces. "Nevertheless, the real estate report shows the overall performance of the market in terms of real estate transactions and the volume and number of transactions in this time of the year remains normal," the report said.
source: Qatar Tribune
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