In an exclusive statement to Qatar News Agency , Vice Chairperson of the Board of Directors and Managing Director of Ariane Real Estate Mohammed Al Ali said that the performance of the real estate sector in the country during 2021 and 2022 was growing, adding that they noticed an increase in the demands of the residential and commercial sectors.
Due to the high number of residents and the failure to meet the needs of the market, an increase in expected in this demand during the next few years, he pointed out, adding that Ariane Real Estate has achieved expansion and an increase in the volume of projects due to the strength and durability of the Qatari economy, which was an important factor in attracting many investors and companies to work within the State of Qatar. This has contributed to the growth of the Qatari real estate market, and as a result, Al Ali said that they are optimistic about the market’s performance and growth for the coming period.
With regard to the current real estate investment return and its expectations for the rest of 2023, Al Ali explained that it currently ranges between 7 and 8 percent, and is expected to rise to 9 percent. An increase is expected to be seen in the value of real estate for the rest of the year, reaching between 10 and 15 percent, he added.
Regarding the opportunities for expansion and growth in the real estate market, he said that the local real estate market is an emerging market, and it has opportunities in all sectors, but the opportunities need investment in order to reap their benefits.
On the necessity of mergers in the market, he said that it provides an effective strategy to expand companies, create larger entities, increase financial flows, and improve final profitability, which leads to obtaining greater opportunities and offers to compete internationally.
The latest report of the Investment Promotion Agency of Qatar (IPA Qatar) goes in the same direction, as it note that the real estate sector provides profitable investment opportunities and favorable conditions for establishing business in the country. For example, 2022 witnessed the launch of 135 real estate projects that contributed to creating 1,856 new job opportunities and attracting investments to the state at a value of QR 86.29 billion.
The report said that the real estate price index recorded from the beginning of this year a growth of 2.6 percent during March 2022 compared to March 2021, which indicates the continued confidence of investors in the real estate market in Qatar. He also expected consumer spending to rise at a compound annual growth rate of 3.2 percent between 2021 and 2030, reflecting the growing purchasing power of local residents and international travelers.
The report also stated that housing spending is expected to increase at a compound annual growth rate of 2.6 percent between 2021 and 2030, in line with the expected increase in per capita GDP (compound annual growth rate of 2.4 percent) during the same period, and the increase in spending in areas related to quality of life.
It is likely that residential rents will witness an increase at a compound annual growth rate of 3.0 percent between 2021 and 2030, which indicates an increasing demand for high-quality residential products to meet the needs of the middle-to-high-income population.
It is noteworthy that IPA Qatar leads all investment initiatives in Qatar and contributes to the promotion of investment opportunities in the real estate sector, by issuing in-depth analytical reports and guidebooks on investment in Qatar, as well as hosting and participating in leading real estate exhibitions in the world, the latest of which is the International Real Estate Exhibition 2023 in France.
Source: Qatar News Agency