File photo used for representation only.
Qatar hospitality sector is expected to see addition of around 20,000 hotel rooms before November next year. Country’s tourism sector will also get boost from the normalisation of relations between Qatar and its neighbours, Cushman & Wakefield- a real estate consultancy firm- said yesterday.
“Cushman & Wakefield estimate that almost 20,000 hotel keys are at various stages of planning and construction, with most expected to complete before the FIFA World Cup kicks off in November 2022,” said Edd Brookes (pictured)– General Manager, Qatar & Head of Middle East, Cushman & Wakefield, in a report yesterday.
“The resumption of economic ties between Qatar and the Saudi-led coalition in January will provide a boost to tourism and business in Qatar, although the ongoing COVID-19 pandemic has curtailed the immediate impact,” it added. Cushman & Wakefield released its quarterly report on Qatar’s real estate, yesterday.
The resumption of diplomatic ties in the GCC is a welcome development for the hotel sector in Qatar, noted the report. Before the introduction of the blockade, visitors from GCC countries made up almost 50 percent of arrivals to Qatar.
“While we expect to see a significant boost in visitor numbers, particularly from Saudi Arabia, any potential return to pre-blockade performance is unlikely until COVID-19 vaccinations are at a more advanced stage and quarantine restrictions are eased throughout the region,” said the report.
Residential sales demand has been boosted in recent months by the introduction of new ownership laws and the expansion of designated ‘freehold’ zones, said the report. “Under Law No. 16 of 2018, nonQatari owners of real estate worth more than QR730,000 now qualify for a residency permit.
This has resulted in an increase in the number of apartment sales in areas such as Lusail,” it added. According to the Planning and Statistics Authority (PSA), the real estate market saw an increase in the volume of sales by 63 percent in January and February compared to the same months in 2020.
Single villa plots are the most actively traded asset class, making up 53 percent of all transactions, while private residential houses, apartments make up 40 percent of sales transactions.
Residential sales continue to dominate the real estate market in the first quarter. Vacant land plots accounted for 53 percent of sales activity, while private residences account for 40 percent of transactions.
In the residential leasing market, we already see the impact of the FIFA World Cup, which will take place in Qatar in November and December of 2022.
The expected increase in demand next year, underpinned by the proposed large-scale acquisition of apartments on government ‘Eskan’ leases, has led to a rise in the number of private tenants requesting two-year lease agreements.
The recent increase in new apartment supply, combined with the lack of expatriates moving to Qatar over the past 12 months has resulted in added value to residential tenants.
Tenants increasingly insist on rental terms that are inclusive of utility bills, while the standards of internal furnishing and fittings are also improving to attract occupiers.
There has been a general shift in residential demand towards a higher quality product. This is partly due to residents increasing their rental budgets, as COVID-19 lockdown measures have enforced changes in spending patterns. Increasing demand at the high end of the market has seen areas such as West Bay Lagoon reach their highest level of occupancy since 2015.
There has also been evidence of small rental increases in some apartment types in The Pearl-Qatar.
