Qatar’s residential market shows a buoyant growth of 11.5 percent at a compound annual growth rate (CAGR) in the years to come. The report by Mordor intelligence reveals that the increasing projects in the residential real estate industry are upbeat on revitalising the country’s economy.
Albeit a lot of restrictions due to the pandemic affected the market in the previous years, 2023 is witnessing vital progress in its projects and is expected to prosper in the same way over the next five years.
“Qatar’s economy is one of the thrivings in the Middle East. High GDP growth and population influx, aided by job opportunities and government legislation, are some of the drivers propelling the country’s residential real estate market forward,” it said. On one hand, when it’s the global investments that drive the economy, on the other, it is the citizens of Qatar. A major propelling factor that boosts the market is construction, while the citizens in the country opt to choose and invest in luxurious residential estates.
The report stated that “The high net worth of the ordinary Qatari inhabitant, both local and expatriate, considerably impacts the construction industry, increasing the demand for luxury and well-organized residential areas.” This shapes-up the economy-boosting with more investments and trade deals in the region.
Segmented by type, the affluent residential real estate in Qatar consists of various apartments and condominiums, villas, landed houses, etc purchased by global and local investors in prime cities. UrbaCon Trading and Contracting (UCC) had agreed to build two residential complexes in Al Wakra, totaling over QR5bn ($1.37bn). In this project, Al Wakra built Qatar’s second-largest city and home to the 40,000-seat Al Janoub stadium. The city was one of the highlighted top destinations for tourists during the World Cup.
Various other projects at The Pearl Qatar and Lusail City also shed light on the futuristic infrastructures that allured most of the investors to buy properties and residencies. The report outlined that “There is a huge competition between residential real estate companies in Qatar. The sales proportion of residential real estate properties through online channels has consistently grown, owing to the rising internet penetration, growing demand, increasing personal disposable incomes, surging middle-class youth population, and opportunities offered by government infrastructure investments.”
“Foreign investment in Qatar’s residential real estate market is estimated to increase in the coming years, as non-Qataris may invest in selected real estates projects, such as the West Bay Lagoon and The Pearl. Major real estate players in the market are Al Mana Real Estate, United Development Company and Ezdan Holdings,” it added.
