CEOs of a number of Qatari real estate companies and research experts affirmed the promising prospects for the real estate sector in the country in light of the strength of the Qatari economy, the wide scope of construction and building operations taking place in all regions, and the completion of many economic diversification plans within the Qatar National Vision 2030.. which made it today one. One of the fastest growing sectors, and the second sector in the country after the energy sector.
In exclusive interviews with Qatar News Agency (QNA), they indicated that these promising prospects for the sector are driven by high domestic liquidity and huge spending in recent years on infrastructure and transportation projects, and the rise in the country’s gross domestic product (3.4 percent during the current year), and the increasing number of tourists. It will lead to a positive impact on the various indicators of the sector’s performance during the coming years.
Attiyah: Increased demand
on tourism projects
Engineer Abdullah bin Hamad Al-Attiyah, CEO of Qatari Diar, said in an exclusive statement to Qatar News Agency (QNA): The real estate market in Qatar witnessed a state of recovery with the hosting of the FIFA World Cup Qatar 2022, and this recovery was accompanied by an increase in rental prices and occupancy rates, adding Qatar aims to attract 5.6 million visitors in 2023, twice the number it received in 2016. It also aims to achieve occupancy rates of 70 percent in hotel establishments by increasing demand and diversifying tourism projects in the coming period. And if this number is attracted; The attractiveness of the Qatari real estate sector will increase in the medium and long term.
He explained that the features of recovery were reflected in the city of Lusail, one of the most important real estate projects of the Qatari Diar Company, “where we witnessed the opening of several new projects in the city, including Al-Saad Square Towers, Lusail Trail, Al-Seef Towers and Lusail Stadium, in addition to many new hotels and tourist facilities, as well as The opening of the largest malls in the city, which is the Place Vendome Mall, Al Maha Island, and the Lusail Winter Wonderland project. Occupancy rates have reached 100 percent in some of these projects, which reflects the strong demand for modern and qualitative projects in Qatar that depend on quality and sustainability.
With regard to the return on real estate investment now and expectations for it for the rest of 2023, Engineer Al-Attiyah said that the real estate sector is considered one of the important sectors that currently gives good returns to investors in the market and acquires a large share in economic activity, as investors in this vital sector seek to achieve profits and returns. With the lowest risks, real estate investments achieve a rate of 7 percent to 9 percent, as a return on investment, according to the type of real estate investment, the location, and the age of the property. The year 2023 is a challenging year for the real estate sector. This is due to the increase in bank interest globally, as the real estate sector depends mainly on bank financing. However, this challenge is expected to be temporary for a maximum of two years until the current inflation is overcome, and this applies to the global real estate market and not only to the State of Qatar.
Regarding the opportunities for expansion and growth in the local real estate market, he said that the state took into account the concerns of some about the real estate scene after the 2022 World Cup, and concluded long-term contracts with real estate owners in order to preserve the stability of the real estate market after the World Cup, in addition to making unremitting efforts to organize Strengthening the real estate sector and supporting the continuity of recovery through legislative amendments that made it easier for foreign investors to reside and own freehold property in the State of Qatar.
He added that the Investment Promotion Agency in Qatar sheds light on the real estate sector as one of the sectors that is expected to attract foreign direct investment during the post-World Cup period, in line with the long-term goals of urban development, economic diversification and increasing Qatar’s attractiveness as an economic center. It will certainly generate opportunities for expansion and growth in the real estate market in the medium and long term.
And on the extent of the need for mergers in the real estate market in the country, such as those witnessed in the local banking market, to create major real estate entities that can compete locally and globally. in the domestic and foreign markets; Thus, the acquisition of larger shares in the real estate market.
Al-Othman: investment opportunities
Attractive for housing and commerce
For his part, Mr. Ibrahim Jassim Al-Othman, CEO and member of the Board of Directors of the United Development Company, said in an exclusive statement to Qatar News Agency (QNA) that the real estate sector in Qatar provides attractive investment opportunities, whether for housing or retail trade that is compatible with all requirements and budgets, especially After the issuance of Law No. (16) of 2018 regulating the ownership and use of real estate by non-Qataris, which contributed to the prosperity of the Qatari real estate market, attracting foreign investors, and granting them the advantages of Qatari residency in a safe and tax-free environment.
He stressed that the success achieved by the State of Qatar in hosting the World Cup left behind a huge national legacy that contributed to a significant increase in investment returns and enhanced the attractiveness of the Qatari real estate market. And through the United Development Company’s projects in the Pearl and Gewan islands, the demand for renting and buying real estate during the past world achieved record levels, and unprecedented residential occupancy exceeded 90 percent of the company’s real estate.
Al-Othman expected that this increase in demand would continue, especially with the approaching completion of the Crystal Residence buildings on Gewan Island, which presents a new concept in integrated residential projects, and provides luxurious facilities and services for residents on the roof of the building in a strategic location that includes a fully air-conditioned commercial area and another air-conditioned walkway on the waterfront. As for the Pearl Island, the Pearl International Hospital will be delivered as a prominent medical edifice that enhances the comprehensiveness of the island and its services, which contributes to maintaining its high attractiveness as a preferred destination for investment.
Sheikh Nasser bin Abdulaziz:
Demand is steady for both residential and commercial real estate
For his part, HE Sheikh Nasser bin Abdulaziz Al Thani, Director of Business Development Department at Qetaifan Projects, said in an exclusive statement to Qatar News Agency (QNA) that the real estate sector has witnessed a steady demand for residential and commercial real estate, adding that the North Qetaifan Island project is considered an integrated project. Because it contains a “Marial” water sports city, a hotel, a beach club, a garden, a mosque, a school, and a medical center, which provides the investor with all his needs in one place. Infrastructure development projects and future events in the State of Qatar also create great opportunities for real estate developers to take advantage of.
He stressed that the Qatari real estate market has consistently achieved great opportunities and attractive returns for investors, especially in the long term, and the country’s stable economy has also contributed to its emergence as a destination for real estate investment, and the financial results of Qetaifan Projects Company have proven its ability to benefit from these trends and contribute to the growth and development of the market.
Regarding the current real estate investment return and expectations for it in the rest of the year 2023, he explained that there are positive returns in the real estate sector, especially after the State of Qatar hosted the 2022 World Cup, adding, “We aspire to enhance the tourism and entertainment sectors through our Qetaifan Island North project, which is the first luxury tourist island.” and water entertainment in the State of Qatar. While return on investment is an important metric for evaluating our performance, our primary focus is on delivering a high-quality project that meets the needs of our clients and investors.”
With regard to opportunities for expansion and growth in the local real estate market, the Director of Business Development Department at Qetaifan Projects said, “I believe that there are still great opportunities for expansion and growth in the Qatari real estate market, as the stable economy and the growing population contribute to the attractiveness of the real estate market.” The growing demand for luxury residential and commercial properties also provides ample opportunities for real estate developers.
And about whether there is a need for mergers leading to the creation of major real estate entities, he said, “We, at Qetaifan Projects, are constantly evaluating our business strategy and exploring opportunities to expand and develop our operations. While mergers may be an option in the future, our focus remains on delivering the Qetaifan Island North project with high quality, meeting the needs of our customers, and contributing to the growth and development of the Qatari real estate market.”
Al-Kuwari: Attracting foreign investments and capital
For his part, Eng. Ali Mohammed Al Kuwari, Chief Executive Officer of Msheireb Properties, said in an exclusive statement to Qatar News Agency (QNA) that the real estate sector in Qatar is one of the most important sectors driving the economic cycle and a major factor in the continuous growth process. He said: “This sector has played a prominent role in the comprehensive development plans adopted by Qatar and has contributed to attracting companies, capital and foreign investments significantly. This sector continues to play its role successfully with more construction projects and urban expansion, providing great opportunities for a wide range of businesses. The returns on investment in the real estate sector were a key element in continuing the projects, as these returns constituted an important lever despite the global fluctuations.
He stated that Msheireb Properties, through its smart and sustainable city, “Msheireb Downtown Doha”, presented a unique and new model for urban projects and urban transformations. Within a standard period of actual start-up. Currently, the occupancy rate in the city has increased significantly in various residential, commercial and retail spaces, which contributes to achieving more returns on investment. This reflects the attractiveness of the Qatari real estate market, especially with the interest of international companies to invest here and open branches in Qatar, specifically in the city of Msheireb, the heart of Doha.
Regarding the current real estate investment return and expectations for it in the rest of 2023, he explained that the returns achieved in 2022 were very good, especially with the preparations for and during the FIFA World Cup Qatar 2022, as the occupancy rate in residential facilities reached 80 percent in 2022, “while our expectations indicate For the year 2023, it has increased, especially in commercial spaces, thanks to what we provide to companies and entrepreneurs in terms of smart, sustainable and modern facilities and services that meet the requirements of their business, in addition to the strategic location of the city of Msheireb in the center of Doha.
Regarding opportunities for expansion and growth in the local real estate market, he said, “Qatar has drawn up long-term plans, and therefore there are still opportunities for the real estate market to expand during the next phase to meet the needs of the market, especially sustainable urban projects that contribute to supporting the pillars of the national vision and its goals. However, the real estate market must adapt to the requirements of the next stage in terms of design, sustainability and diversity, which we are beginning to see now. In addition, the developed infrastructure in Qatar and fast transportation routes contribute to the horizontal expansion and construction in new areas thanks to the ease of movement to the main business centers.
With regard to the need for mergers in the local market to create major real estate entities that can compete locally and globally, he believed that the merger is a natural matter in the business market, but it results from a need. “Certainly this depends on the companies’ decisions, ambitions and vision. However, Qatari companies enjoy a good reputation in the real estate and construction market, in light of the achievements they have made to prepare for the World Cup. But the competition of giant global companies has requirements and rules, and merger is one of the ways that help secure large capital and investment capabilities that can keep up with giant companies, and thus open many horizons for companies to enter new markets.
Al-Ali: Expansion of projects to meet the growing demand
For his part, Mr. Muhammad Al-Ali, Vice Chairman and Managing Director of Ariane Real Estate Company, described, in an exclusive statement to Qatar News Agency (QNA), the performance of the real estate sector in the country during the years 2021 and 2022, as growing, and said, “We have noticed that there is an increase in the requests of the residential and commercial sectors. Given the high population and the lack of market needs, we expect this demand to increase over the next few years. Ariane Real Estate Company has achieved expansion and an increase in the volume of projects due to the strength and durability of the Qatari economy, which was an important factor in attracting many investors and companies to work in the State of Qatar and choosing it as its headquarters, which contributed to the growth of the Qatari real estate market, and we are optimistic about the performance and growth for the coming period.
