Posted on May 01, 2015
Qatar's booming population has helped to cushion the impact of lower oil and gas prices on the local real estate market in early 2015, a new report has said. According to real estate firm DTZ, there was decreased demand from the hydrocarbon sector in the commercial and residential real estate markets as budgets have been cut due to the steep drop in oil and gas prices.
 
However, the increase in the country's overall population continued to fuel the residential market with rent rises of 5-10 percent for mid-range apartments in some locations in the first quarter of 2015. The report also said that the availability of new apartments in the Pearl Qatar and West Bay will help ease rental inflation for higher end apartments in the remainder of 2015. DTZ said in the sales sector, average freehold prices for apartments range from QR12,500 per sq m to QR14,000 per sq m.

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Mark Proudley, associate director, Consultancy and Research, DTZ, said: "Over the past 12 months up to the end of March 2015, the population realised an increase of 9.5 percent according to the Qatar Statistics Authority. This along with new apartments entering the market has contributed to the growth of the residential market despite the impact caused by lower hydrocarbon prices. Edd Brookes, general manager of DTZ in Doha, added: "The increasing maturity of Qatar's real estate market is now becoming evident. The slowdown caused by lower hydrocarbon prices has been balanced by the growth in residential demand caused by a rapidly expanding population."
 
The report said there had been few significant transactions with regard to office lettings in the first quarter of 2015. "While the number of large scale acquisitions is likely to reduce due to the lower hydrocarbon prices, DTZ said it expects to see an increase in smaller lettings to the private sector.
 
source: Arabian Business

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