BOLD SALES PITCH
With the world's beautiful game bound for Qatar, the country intends to score goals before the first ball is even kicked by adequately accommodating visitors and selling homes to more rooted individuals, native and foreign.
Hydrocarbons giant Qatar boasts the world's leading GDP per capita ratio, at USD63,222 in 2018, a huge 501% times the global average. Geopolitical turbulence notwithstanding, this attests to the purchasing power of its citizens, not to mention that of the expatriate and foreign contingent, now legally more advantaged in real estate investment. Add to this the panoply of projects being realized in the countdown to the 2022 FIFA World Cup, and we are talking footy-fueled construction boom, which, despite dips, promises sustained strength in the real estate sector.
A Bumpy Road
It hasn't been rosy all the way, and the 20.74% real estate price index rise of 2013 followed by the respective 34.67% and 14.39% appreciation of 2014 and 2015 was pronouncedly reversed in 2016 as real estate transactions tanked about 50%, with prices losing an average of 4%. Following the boycott by the Saudi-led coalition in 2017, real estate prices shed a further 9.9%, followed a year later by a 2.6% decline. Encouragingly though, the 1.56% YoY rise in 2Q2019 contrasted with the 16.6% YoY fall in 2Q2018, by Qatar Central Bank numbers. Yet 2Q2019 sales were rather meager, with residential transaction volumes down 14% YoY, somewhat negating the 20.5% rise of 1Q2019. The sector argues that deflated prices are partly behind encouraging upward movements in transaction volume. Unsurprisingly, the highest transaction prices remain in such prestigious schemes as The Pearl-Qatar, New Salata, Abu Hamour, and, of course, Lusail, the great hope for tomorrow's Doha. Residential prices at time of print were, on average, around 10% down on the 2017 level. In the Pearl-Qatar, a used two-bedroom freehold apartment could be had for under USD3,570 per sqm, while new-build studio and one-bedroom flats in Viva Bahriya were going for north of USD4,394 per sqm as we went to print.
A Tempting Legal Climate
Foreign citizens account for 75% of Qatar's population by official numbers. Bearing this in mind, a potential catalyst for realtors' commission earnings is the latest investment law that allows foreign citizens full company ownership without a local partner, which provided greater flexibility in purchasing real estate. While citizenship is not an option, the new legal environment delivers permanent residency for foreign owners of property with a minimum value of USD200,000 for the duration of ownership. Expats may borrow up to USD824,000 for a maximum of 15 years, usually with an average loan-to-value ratio of 70%. The preeminent local lender, Qatar National Bank, extends home and land financing at 3.5% interest. And what's more, these individuals enjoy the same benefits as Qatari nationals regarding healthcare and education, as well as priority after citizens, for public sector work. In March 2019, Law No. 16 of 2018 raised Qatar's number of freehold residential zones from three to 10. This has increased the range of possibilities added to existing residential staples such as The Pearl, a technical marvel in itself for being located on a man-made island off the coast of Doha. It features 16,000 villas and 25,000 apartments. Currently there are also 16 leasehold zones available to foreign citizens offering deals of up to 99 years. These zones include the colossal Lusail project, and foreign nationals are at liberty to utilize property commercially or residentially, as well as transfer the lease to another party, sublet, or rent. Such legal reforms confirm that the government has prudently compensated for the intended financial damage of blockade. Qatar's real estate sector hasn't enjoyed plain Lusail-ing, so to speak, though lower prices combined with greater investment opportunities make it a viable proposition.
BOLD SALES PITCH
TABLE OF CONTENTS
Interview
Yousuf Mohamed Al-Jaida, CEO, Qatar Financial Centre (QFC) Authority
Given its successful performance in the last few years, QFC is optimistic it will be able to capitalize on Qatar's ongoing efforts to create a world-class business environment and attract more global companies.
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Lolwah R M Al-Khater, Spokesperson, Ministry of Foreign Affairs
The Ministry of Foreign Affairs is focused on pushing forward Qatar's foreign policy, sharing information and perspectives that could be useful for regional security and advancing the Qatari narratives on many issues facing the world today.
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Richard O’Kennedy, Vice President, Research, Development, and Innovation, Qatar Foundation
The first country in the world to track its citizens' genomes, Qatar is on track to make one of modern science's biggest breakthroughs by personalizing medical treatment and precision care.
read articleInterview
Jassim Saif Ahmed Al Sulaiti, Minister, Transport and Communications (MoTC)
With plans for a fully electric bus system and an impressive set of interconnected transportation options including metro, rail, and tram, the Ministry of Transport and Communication is shifting mobility into the next gear in Qatar.
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Sheikh Abdulla Bin Saoud Al Thani, Governor, Qatar Central Bank (QCB)
Encouraging local manufacturing, initiating self-sufficiency in dairy and farm products, expanding into new air and sea routes, offering select visa-free entry, and enacting fiscal reforms are but several of the successful reforms undertaken since 2017.
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Sean Kelly, Project Director, Place Vendôme
Place Vendôme is no ordinary mall: with 650 hotel rooms, a 6,000-sqm cinema with 18 screens, six slides, three toboggan runs, and an ice river opening in September 2020, it is looking to slide into Qatar's tourism infrastructure in time for the World Cup.
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Mehmed Zingal, General Manager, Turkish Airlines - Qatar
With its 30th year celebration of its Miles&Smiles club launch in Qatar, Turkish Airlines is acknowledging its continued diligence to provide the best customer service, with targets to increase customer happiness through innovative technologies and increasing tourism to Qatar for the future.
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Hassan Rashid Al-Derham, President, Qatar University (QU)
Ranked in the top-500 universities by the Times Higher Education, Qatar University improves students' academic success by supporting students throughout their academic lifecycle, from the pre-university stage to beyond graduation.
read articleFocus
A lesson learned
The international attention set to fall on Qatar over the coming years is significant only to the extent that it generates advances in human capital required by Qatar's blueprint, National Vision 2020, where local know-how and innovation advance the nation and promote wellbeing.
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Dr. Hanan Mohamed Al Kuwari, Minister of Public Health & Managing Director,, Hamad Medical Corporation (HMC)
The health minister is committed to continuing the growth of Qatar's healthcare system, with plans for more than 20 new facilities specializing in pediatrics, geriatrics, and mental health.
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