Qatari Diar is currently exploring new real estate investment opportunities abroad as low interest rates in the global market continue to attract investors to take part in what is seen as a post-pandemic real estate boom.
Speaking at a panel discussion on “Real Estate in a Virtual World” during the Qatar Economic Forum yesterday, Qatari Diar Chairman and Qatargas CEO Sheikh Khalid bin Khalifa Al Thani said now is the ideal time for real estate investment.
“Locally, we have not looked at opportunities because we are focusing mainly on Lusail Smart City; but abroad yes. Working with partners to find the best opportunity, we will capitalise on the relationship that we have built over the years. And I think the US is a great place for investment. Qatari Diar has went through a restructuring in its organisation and investments. And we continue to focus on UK and US markets with our partners,” Sheikh Khalid said.
As of 2020, Qatari Diar has a shared capital of $8bn, with 50 investment projects under development in 22 countries across the world, combining an investment value of around $35bn.
According to projections from CBRE Group, property values for apartments, offices, and retail real estate will bottom in 2021. Real estate outlook post coronavirus lockdown show that commercial real estate values won’t rebound to pre-COVID levels until 2022 or beyond.
“I think we will enjoy low interest rate for a couple of years or more, and it’s an opportunity that we see in terms of investing. At Qatari Diar, we are refinancing our facilities and taking advantage of the low rate. And I think globally, this is really a time to go for investment,” added Sheikh Khalid.
Rob Speyer, President and CEO of New York-based Tishman Speyer, added that interest rates which have even gone to zero also cause inflationary pressures. And while rates may be low for the next couple of years, they will gently rise to prevent a run-on inflation.
“There are extraordinary opportunistic things to buy in major cities around the world. We’ve been active in Paris, Washington DC., San Francisco and London during the pandemic. And people are selling real estate at 25 to 35 percent discounts. These are generational buying opportunities,” said Speyer.
Sheikh Khalid added: “In behalf of Qatari Diar, we look for opportunities in the commercial, offices, retail, residential, and hospitality sectors. So if there’s a right opportunity, we jump on it. I think there are great opportunities right now and people just need to take the risk. At Qatari Diar, we will invest where we see the right opportunities”.
Globally, people are coming back to offices as they reopen across the world, but at a slower pace in some places. In Qatar, Sheikh Khalid reiterated that companies and organisations are also reopening according to phases and amid the country’s vaccination programme.
“We cannot get away from the concept of work space, which promotes collaboration and innovation. I think demand for the office space will continue especially for big corporations, technology firms, and also for the professional services that rely on a large talent pool. There’s also demand for more smart offices. These offices will remain as a high flier,” Sheikh Khalid added.
He went on to highlight the company’s flagship project, the Lusail Smart City, which also expects to see a huge number of visitors during the upcoming World Cup next year.
“We’re building facilities to cater to the World Cup 2022, and also marketing the Lusail City Commercial Boulevard. This is a one-of-a-kind commercial avenue we have built close to the Lusail Stadium,” said Sheikh Khalid.
Asked about real estate demand after the mega sporting event, he said: “Great infrastructures have been built in the city, with all the regulations that has been put in place in terms of attracting tourists to Qatar. And these will make Qatar the most cost-effective choice to host any global event in the future,” Sheikh Khalid added.
