The lending growth in Qatar property market was more than 8% in first quarter 2018. Recently Qatar Cabinet has given its nod to a draft law on the regulation of ownership and usage of properties by non-Qataris in the country. Under the terms of the draft law, non-Qataris may own and use properties in Qatar in accordance with conditions specified by a decision of the Cabinet and based on suggestions of the commission for regulating non-Qatari ownership and use of real estate. The provisions of the draft law are applicable to land space, buildings and residential units, as well as certain units in residential complexes.
Qatar Tourism Authority released its National Tourism Strategy, which set out targets for 2023. Targets include boosting occupancy rates to 72% across the sector, and doubling tourist arrivals to 5.6mn. Qatar also announced the expansion of visa free entry to 80 countries and the introduction of the e-visa platform in 2017.
To attract greater tourism to Qatar, major investment will be required in developing tourist attractions, and bring successful initiatives such as Shop Qatar and the Summer Festival. The retail market witnessed launch of B Square Mall in Al Thumama in 2017, which combines retail units with extensive entertainment and leisure provisions.
The Tawar Mall got opened in March 2018. Other malls which are in progress include North Gate Mall, Katara Mall and Doha Mall.
The most important residential development to influence the residential leasing market in 2017 is Ezdan Oasis, which opened in July 2017. Qatar population has surged by more than 2.7mn and the population growth can impact the residential market. However, rents continued to soften in the first quarter of this year as the residential sector continues to feel the impacts of the economic downturn and a reduction in demand.
The government initiatives to grow the private sector will increase office demand.
However, demand for new offices from the hydrocarbon sector remains subdued due to fiscal consolidation measures introduced in earlier years. Qatar is witnessing announcement of major property projects in recent times. Just Real Estate, announced the launch of Baywalk Tower, its latest project at The Pearl, which is expected to get completed in 2019. United Development Company’s (UDC) Gewan Island latest real estate project next to the Pearl-Qatar is expected to be completed by the end of 2021 and will bring the total number of daily visitors to 9,000.
UDC also announced the launch of second stage sale of properties at Giardino Village and third phase of sales at Al Mutahidah Towers. Despite these developments, the challenges to property sector remain. The reforms in Qatar such as visa free entry, e- visa and other measures to promote tourism, new Public Private Partnership Law and potential property sector liberalisation by encouraging non – Qatari participation can mitigate the challenges arising from property sector.
