Coming back after a low period in 2011 the Qatari real estate scene showed positive trends in 2012 and is now really moving up at the beginning of 2013. With the real estate sector expecting a boom many investors are planning to make hay while the sun shines. Qatar being the top country among the GCC nations in terms of growth rates, the country’s real estate sector is expected to see an influx of opportunities. Qatar is expected to witness the launch of US $10 billion worth real estate projects in the next couple of years. The onset of the boom bodes well for Qatar as it gets set to host the coveted 2022 FIFA World Cup. The Qatar government has been very supportive of the real estate sector by passing various laws that allow foreign ownership in designated areas in Qatar.
Approximately 100,000 apartments are likely to enter the Qatar market in the next four years and several major companies will begin work. Data from Qatar’s real estate registration department at the Ministry of Justice showed that the volume of real estate transactions is increasing, for example, a substantial increase from US $522 million to US $659 million was noted in real estate transactions during the entry into 2012. The Qatari economy has seen growth on the back of several real estate projects in 2012 and this can be further noted by the value of real estate deals in 2012 which reached a staggering US $11.5 billion, up 59.1% over 2011.
With increased real estate development projects such as office, residential, retail, and hotel space; the demand seems to be multiplying at a good rate. For example, the number of hotels in Doha increased from 79 at the end of 2011 to 84 by the end of March 2012. A further 77 hotels have been planned or are under construction, which will in turn add a further 17,000 rooms to the current stock. Craig Mitchinson, Managing Director of Mirage International Property Consultants, said, “Thanks to the successful World Cup bid, many of the mothballed construction projects in Qatar had restarted after two or three years of stalling.”
The potential of the Qatari real estate sector cannot be undermined as it witnesses a boom after a prolonged lull, with transactions almost doubling in 2012 and the prices of land near existing and planned development projects across the country reaching incredible highs. According to Al Arab, “The spending in the real estate sector for the next year would be largely concentrated on mixed-use commercial buildings. An estimated US $35.5 billion projects is expected to be launched by 2015, which represents 48% of the total expenditure in the country’s construction activity during the period.”
There is tremendous opportunity for real estate developers to capitalize on the growing infrastructure requirements of Qatar. This being a small nation, the capability to produce indigenous supplies for the infrastructure projects would be minimal therefore these projects would heavily rely on global sourcing. Brickwork Sourcing works with construction and real estate development companies and has capabilities of providing end to end sourcing, vendor and supply chain management.