Edd Brookes (left), General Manager, DTZ Qatar; Mark Proudley, (second left) Director and Head of Commercial; Johnny Archer (second right) Director of Consulting and Research;, and Richard Rayner, Director of Valuation and Advisory, at DTZ seminar on Q
More investors are now purchasing plots of land in areas outside Qatar, seeing their future demand as the city expands outwards. According to Richard Rayner, Director and Head of Valuation at DTZ Qatar, land has been traded more than any other real estate asset in Qatar in recent years which has also led to surge in prices.
While addressing a seminar to present an overview of Qatar’s real estate market, Rayner said the total value of land transactions in Qatar has increased by 20 percent to QR567.4m during the first half of 2019 compared to the same period in 2018. The number of land transactions totaled to 788, with an increase of 2.5 percent in the average land rate (QR304 per sq ft) across the country.
As many as 50 percent of the total number of transactions were seen in the municipalities of Al Daayen, Al Rayyan, Al Wakrah, and Al Khor. Rayner said many buyers are now seeing the future demand for land in these areas and are now investing to either develop the properties or hold them for future trading.
He added: “What we’ve seen from every participant in the market is there ‘s a bit more positivity now. People are looking to invest. And people really feel that with the growth in Qatar since the blockade that there really is a push forward. And they’ve got that drive back in. And it reflects in numbers”.
While value of land traded may have increased, DTZ also said that both the overall number of residential sales and the total value of transactions in Qatar in April and May decreased by 20 percent and 29 percent respectively compared to the corresponding months last year. The average price per transaction also decreased by 10 percent.
Edd Brookes, General Manager at DTZ Qatar, said that the World Cup effect is already felt in Qatar. He added: “Qatar was an expensive place to house staff and rent office accommodation. Now, the fact is it’s affordable and indeed, much more attractive regionally. And this is highly advantageous. Qatar will be ready for its place on the world stage. And this can only open further opportunities for all of us within the business community”.
Meanwhile, occupancy rates in hotels have increased over the first half of the year compared to the corresponding period in 2018. The overall occupancy rate in May 2019 was 66 percent, which is 6 percent higher than the 2017’s figure, despite the overall increase in the supply of room numbers.
Arrivals in March 2019 were the highest number seen since the introduction of the blockade in June 2017, illustrating that the measures taken to improve the tourism market are succeeding,