A photo illustration of the Al Janoub Gardens.
Doha: Qatar’s residential real estate sector which is witnessing significant rent hikes as the country prepares to host the biggest sporting event in the world, will witness price corrections post-World Cup, an official from a leading real estate company said yesterday.
Responding to a question by The Peninsula during a press conference to unveil the Al Janoub Gardens project yesterday, Deputy Group CEO of Ezdan Holding Group Hani Dabash said Qatar’s real estate market will witness the same trend seen in different countries which have also hosted the FIFA World Cup.
“The Qatari real estate market is very deep, very vital and dynamic market. We believe that after the World Cup, there will be normal (price) correction. I wouldn’t call it sharp, but there will be correction. The market here is very strong, and the government’s plans are very ambitious. The projects are coming as announced by the government, showing us this market will keep being vital and strong. And I believe it will keep up with projects of the government, and will perform very well in the coming mid to long term,” said Dabash.
According to a Qatar Real Estate Market Review by Cushman & Wakefield, residential rents soar in the country ahead of the FIFA World Cup Qatar 2022, with the residential real estate sector witnessing strong growth in rents during the second quarter. The report added that a spike in short-term demands ahead of the FIFA World Cup has seen some rents increase by more than 30 percent year-on-year.
Dabash added: “The rates for the rents are determined by the demand and supply. The Qatari real estate is very strong, and we believe it will find a balance. Ezdan and other companies are (seeing) strong occupancy, which means that they are pricing their units according to the market. Ezdan looks at our tenants as our partners. We are addressing their concerns, and assure you that we will be providing them with rates that will suit their budget”.
It may be noted that Ezdan has announced earlier this year its plan to launch a series of completely modern residential compounds, adding more than 4,000 residential units to meet the requirements of the market during Qatar’s hosting of the FIFA World Cup.
Dabash said the company has already delivered about 1,700 units from over 7 projects, and these projects have already been leased to mainly international and local companies involved in the World Cup projects.
The rest of the 4,000 units will be delivered over two phases, said Dabash who reiterated his optimism to have the units completed in time.
“We want to show the consistency of Ezdan. We have promised and we always deliver. We have promised that we will be developing our communities. There are 37 residential villages with 15,000 units undergoing upgrades and development in five phases. This project started last year, and will be completed by year-end,” he added.
Among them are residential villages in Al Wakra and Al Wukair, and residential compounds and buildings in Doha. The renovations included a structural revamp including floor replacement, painting walls, and performing integrated maintenance operations for buildings, in addition to replacing most of the furniture, electrical appliances and air conditioners in the mentioned residential units.
Dabash reiterated that the company had also announced an integrated plan to meet the satisfaction of its customers, in addition to conducting a comprehensive re-evaluation of all properties belonging to Ezdan Real Estate Company to assess the condition of all residential units and their requirements in terms of construction developments, furniture, electrical appliances, air conditioners, and others.
To date, Ezdan Holding Group owns about 32,000 real estate units of various purposes in Doha, Al Wakra and Al Wukair. The company has offered for rent during the last period one of the phases of the “Ezdan Oasis” realty project, an integrated city and the largest of its kind in the Al Wukair area, which is also called the land of a million comprising of residential, administrative, and commercial units.
Dabash went on to explain that the residential properties that will be put on the market are “characterised by their qualitative differences in terms of the services they offer which we believe will contribute to meeting the growing market need and also have an effective role in upgrading the real estate market by providing a wonderful product to those looking for quality and excellent rentals”.
