The real estate market is back in action as deal-making activities have gained traction over the past few months. After seeing a lull in activities due to outbreak of coronavirus pandemic, there is a steady rise in real estate transactions since April this year, when business activities slowed down due to COVID-19 restrictions.
In the last two quarters, the deal size in the real estate sector has nearly doubled, showing that the sector has recovered much of the ground it had lost during the peak of COVID-19 outbreak. During April-June quarter of this year, when pandemic outbreak slowed the pace of commercial activities, deals worth QR5.4bn were signed, according to the Planning and Statistics Authority. While, during July-September quarter, deals worth QR10.1bn were signed, signaling confidence among real estate investors and buyers.
The deal-making activities had reached their lowest in April and May during the year. Deals worth QR818m were signed in April in total 215 transactions while in May deals worth QR758m were struck in 180 transactions, according to data available with the Planning and Statistics Authority.
But since then, activities have gained momentum. June marked the start of the recovery in the sector as real estate properties worth QR3.8bn exchanged ownership in 456 transactions. The trend of a solid recovery was confirmed next month as deals worth QR2.8bn were signed in around 644 transactions.
In August, deals worth 4.2bn were signed in around 500 transactions. “The confidence of investors and buyers is gradually coming back because two main factors- consistent fall in COVID-19 infection cases and policies taken recently by government authorities,” an analyst with a real estate consulting firm told The Peninsula. “Allowing foreign companies and individuals to own real estate in more areas in the country is a big game-changer for real estate sector. This move has sent a clear message that the government wants to attract foreign investment in this sector,” he added.
After hitting a peak in May, the new cases of coronavirus have been continuously falling since June which has instilled confidence in the economy.
