Qatari economy is strong, solid and resilient despite crisis and challenges said the monthly report issued by ‘Market Watch Bureau’ of SAK Holding Group.
“The real estate market crossed the first half of 2017, optimistically, due to the stability in the volume of real estate liquidity traded in the market, which is considered good and normal given the pressing economic and geopolitical challenges; which was more severe and greater on neighbouring countries. This success falls in favour of those who manage the real estate portfolio in Qatar, who demonstrated a distinct ability to control and maintain the real estate sector within a cohesive system that serves the country’s future directions and long-term development plans,” noted the report.
Qatar’s real estate market stabilised during the first half of 2017, and the market is expected to enter into a reviving trajectory during the second half after successfully absorbing the repercussions of deflation imposed by external factors and influences, noted the report.
The report commended initiatives and efforts undertaken to diversify the economy, which contributed in boosting the solidity and the strength of the Qatari economy. Today, thanks to financial centres acquired by Qatar, in the form of cash reserves and investments, through Qatar Investment Authority and other funds, has the flexibility and ability to cope with various fluctuations and changes, said the report.
According to the report, the amount of pressures on the real estate market doubled because of entering a period of almost total calm, which is the holy month of Ramadan, and the annual summer holiday season. During these two seasonal events, the activities of different categories and branches of the real estate market usually slow down. In the second half of the year, there will be a significant slowdown in the residential and commercial leasing sector, which will pressure the level of real estate liquidity. Also, the rate of arrival of new expatriates drops significantly during summer. In addition to the decline in investors’ appetite to buy, traders use this period to reschedule their future plans and reset priorities.
SAK Holding Group Market Watch Bureau expects the stability of supply and demand to face an unfair test amidst a noticeable glut in residential properties and steady increase in retail units, as many new commercial complexes will opened in more than one area in Doha and its environs, on the other hand, office properties is facing challenges in finding new occupants for its growing areas, which now stand at more than 620,000 square meters, which grew significantly from last year. It was estimated at 320,000 square meters.
This growth was driven by strong demand from the public sector for leasing 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.