By the end of 2018, Qatar will have 293,000 residential units to house the projected 2.69 million resident population, Gulf Times reported, citing a real estate report.
According to the report by advisory firm ValuStrat, Qatar is expected to have 293,000 residential units, 51mn sqft of office supply and nearly 31,000 hotel rooms and apartments by 2018-end, assuming all projects are delivered on time.
Supply projections have been adjusted upwards to 8,800 units in the residential sector due to delayed deliveries.
Rents expected to stabilise by year end
Rent and price corrections are expected to continue especially in prime areas in the first half of the year due to increasing number of project handovers, expected to stabilise by the end of the year.
“Regional challenges had a direct negative impact on hospitality sector and to some extent on retail sector as footfall from tourists decreased. However in the industrial sector it had two positive spillovers,” ValuStart noted.
“Firstly, the demand for local produce increased, which resulted in local manufacturers increasing their production capacity. It has also provided opportunities for further optimisation in food security.”
“The government of Qatar introduced multiple initiatives to support the private sector to capitalise on these opportunities. Secondly, due to the suspension of land borders, the demand for port and logistical services augmented to support buffer stocks. Hamad Port saw 30% YoY average increase in cargo since Q2, 2017,” the report said.
“Additionally, government-regulated warehousing zones were completed in south and north of Doha, which offered storage options at competitive rates.”
“As a result, rental rates in relatively older industrial areas saw marginal declines during the first half of the year, stabilising towards the fourth quarter,” ValuStart said.
Published on 3 January 2017