Real estate market in Qatar forecasts for the upcoming year
Qatar is witnessing growth in its economy from several sources. As one of the highest GDP countries in the world, the Middle Eastern state has long relied on its oil reserves. But the current policies and activities to diversify the economy into a more global venue show promising results. Due to the increased price of LNG, Qatar’s economy has seen an increase of 20.8% in its total revenue in 2022. This led to the GDP growth of an estimated 4.7% last year. The increased state revenue points towards a healthy economy on track for further development. The real estate market is also growing due to newly created government policies that may simplify foreign direct investment and property ownership in Qatar.
According to Serban Spirea, Chief Executive Officer of FG Realty, a Qatar real estate company, “Qatar has heavily invested in projects associated with FIFA World Cup 2022. A significant portion of these investments was in real estate projects that created a market surplus. However, the COVID pandemic brought some challenges that slowed the economy’s growth. But in 2023 and years ahead, the government expects increased income of QR 29 billion as the expenditures related to the World Cup end.”
Interestingly, the government has allocated 20% of the 2023 budget for developing the healthcare and education sectors. Both these segments are closely associated with the real estate market and are known to be key drivers of its growth. Qatar property search is also witnessing growth as more people look for residential and commercial properties to buy, rent, and invest in. Spiera believes the Qatar real estate market will grow steadily in the upcoming year. His claims are supported by market studies that conclude that the real estate segment in the country is expected to grow at a compound annual growth rate of 11.5% by 2027.
There has been an increased interest in property investments in Qatar since it successfully hosted the World Cup. Millions of people visited for the event and got to witness the hospitality and infrastructure of the country, which has piqued the interest of foreign investors. The gross domestic product is also on the rise steadily, which indicates that it will have the capacity to spend. According to Planning and Statistics Authority data, Qatar’s quarterly GDP at constant prices was QR 175.028bn in 2022, much higher than the QR 167.782bn estimate for Q3 of 2021. The increased GDP encourages people to spend more and explore properties for sale in Qatar. On their website
https://www.fgrealty.qa, FG Realty is witnessing a steady growth in property demand. The company offers premium listings to buy an apartment in Qatar for citizens and expats.
Another reason why the market outlook is positive towards Qatar’s real estate market is the change in policies that the government is introducing to attract investments. The most recently amended foreign ownership and leasing laws greatly benefit investors as they provide several benefits. Now, foreign investors can have freehold ownership of properties in 10 regions throughout Qatar. If you buy properties for sale in Qatar in any of the following areas, you are entitled to freehold ownership:
Al Dafna
Al Kharij
Al Khor Resort
Al Qassar
Al Wasail
Jabal Theyleeb
Onaiza
Rawdat Al Jahaniyah
The Pearl Qatar
West Bay Lagoon
Furthermore, the government has increased the number of municipal regions where foreigners can lease properties from 3 to 15. Now anyone can lease properties in these areas:
Al Khulaifat
Al Mirqab Al Jadeed and Fereej Al Nasr
Al Refaa and Old Al Hitmi
Al Sadd
Doha Al Jadeed
Doha International Airport area
Fereej Abdelaziz
Fereej Bin Mahmoud ,Fereej Bin Mahmoud
Mansoura and Fereej Bin Dirham
Msheireb
Najma
New Al Ghanim
Rawdat Al Khail
Salata
Umm Ghuwailina
The new property ownership and leasing law is significant for two reasons. Firstly, it communicates the progressive outlook of Qatari lawmakers towards foreign investments. Second, it encourages the developers within the country to take on more challenging projects.
According to the Mordor Intelligence market report, “For residential properties, the median transacted ticket size was more than USD 500 million, up by 3.4% quarterly and 6.8% annually. Compared to the same period in 2020, housing transaction volumes fell by 3.3% quarterly but were 52.8% higher.” This is a clear sign of increasing interest in residential properties. Compared to commercial properties, residential properties are much easier to move. With the increasing demand for residential properties, the outlook for the growth of the real estate market for the upcoming years remains positive.
FG Realty is a Qatar real estate company that deals with luxury properties for sale and rent. As an award-winning company operating since 2012, the broker has nurtured expertise in consulting expats and citizens for Qatar property search. To learn more about their services, visit https://www.fgrealty.qa.