The Qatari real estate sector managed to cope with the Coronavirus pandemic. Developers and asset management companies have relied on government support and precautionary measures.
Unlike most countries in the world, the negative impact was limited to the Qatari real estate sector, compared to other sectors.
The volume of real estate circulation in sales contracts registered with the Real Estate Registration Department at the Ministry of Justice from February 7 – 11 this year – was about 478 million riyals.
Qatari real estate sector
Al Asmakh Real Estate Development Company report said investment properties returns related to the commercial sector declined over the past year.
The report attributed the decline to the closures that affected commercial complexes.
The sector revenues were not significantly affected. The rental values of residential units during the past year were stable on an annual basis in most areas but slightly decreased in limited areas, the report said.
As for office real estate, COVID-19 has left its negative impact, to some extent, on this type of Qatari real estate during the past year. Many businesses and activities were suspended in line with the precautionary measures imposed to confront the pandemic.
However, the monthly rent of offices has witnessed constant prices since the beginning of 2020. In some areas, their values decreased in varying proportions in other regions depending on the services and specifications provided.
The report pointed out that despite the surplus of office space, the demand for small spaces is stable, especially in business centers.
United Development Company CEO, Ibrahim Al-Othman, indicated that the Qatari real estate sector has gone through a gradual decline since 2015.
He also expected demand for residential real estate to continue, especially in light of the approval of the legal legislations that stimulate the injection of investments within the sector, whether from the inside or outside.
Al-Othman indicated that the UDC is working to develop projects outside the Pearl-Qatar and Gewan Islands in the future.
UDC also aims to sign an agreement with two local banks to make purchases of units through individual investors in installments.
He pointed out that there are investments worth 3.5 billion riyals in Gewan through UDC. This is added to other companies and developers on the island, in addition to investments in the Pearl Island, which is estimated at 2.5 billion riyals.
He also confirmed the delivery of new projects by the end of this year and the beginning of the first quarter of next year.