Pawel Banach, General Manager, ValuStra
The Pearl- Qatar and Lusail are expected to attract more investors and property buyers initially, compared to other areas where foreigners are now allowed to buy properties. The real estate assets in 25 areas designated for freehold or leasehold ownership may also witness a short-term increase in property values due to rise in demand. One of the main reasons that would attract buyers to The Pearl-Qatar and Lusail is availability of residential units and world-class infrastructure. “The Pearl- Qatar and Lusail have been most preferred compared to other leasehold and freehold areas by expatriate households for investment or for self-occupation in the past.
This is partially due to the influx of new and premium residential developments in these areas with affordable payment plans in the past five years,” Pawel Banach, General Manager, ValuStrat told The Peninsula. “Additionally, this can also be attributed to ample availability of residential units for sale compared to other areas of Qatar.
Therefore, it is projected especially these areas might see a spike in inquiries in the short term,” he added. Lusail and The Pearl-Qatar play a leading role in providing new residential units in Doha. During 2019, around 60 percent of the new residential supply was concentrated in Lusail, The PearlQatar and Dafna. In a bid to attract investment in the realty sector, the government has allowed non-Qataris to own and use real estate in 25 areas in the country. The decision allows Non-Qataris to own real estate in nine areas, and use real estate in 16 areas.
“The impact of the newly introduced foreign ownership policies in Qatar on real estate market depends on various factors. Property values in the 25 areas designated for freehold/leasehold ownership might experience a short-term increase in values due to the saleability of individual units rather than entire buildings,” Pawel said. “We can also project a short term increase in inquiries in these areas as the new rules have introduced new incentives to owning property in Qatar.
Nevertheless, how much of that will be translated into increased sales will depend on the availability of supply for sale, competitive prices and credit availability,” he added. Experts believe that the new law might entice expatriate households to make a decision to buy instead of leasing their residence.
I n t h e medium term, this law might also incentivise p r o p e r t y owners in other subject freehold and leasehold locations to take advantage of this opportunity to reassess the m a r k e t i n g strategies of their holdings under the new law to attract foreign buyers. “Instead of leasing, they might consider selling individual units within their property,” Banach added.
