A view of Lusail City.
Qatar’s real estate sector is expected to remain buoyant next year with the addition of more residential houses to the existing stock residential units.
Around 13,500 residential units are projected to be added during next year, said a report released by real estate consultancy firm Valustrat.
“Subject to a temporary increase in demand arising from growth in expatriate population fuelled by hosting FIFA World Cup in 2022 and Eskan leases, rents of residential units are projected to stabilise and even grow in some areas,” said the report released, yesterday.
“Growing ownership by foreigners coupled with positive expectations associated with hosting a major global event could potentially bottom out capital values in the beginning of 2022 and may lead to appreciation in some areas by end of the year,” added the report.
The real estate sector will benefit from the ongoing strong recovery in the economy and the growth is expected to continue going forward. Various international financial organisations have forecasted Qatar’s real GDP to grow above 3.5 percent in 2022. Qatar is expected to see its economy grow 4 percent, as per International Monetary Fund (IMF).
Significant increases in gas production, and tourist receipts during FIFA World Cup Qatar 2022 will be the main drivers of growth. Around 1.5 million fans are expected to attend the World Cup 2022.
Regarding the retail sector, the report said that more malls will open during the next year. Place Vendome Mall, Boulevard Mall, La Plage Mall, Doha Oasis and Giardino Mall are expected to open next year. “Despite boost to retail demand in 2022, rentals in malls and shopping centres could continue to face downward pressure due to relatively large supply pipeline for the year,” said the report.
The tourism sector will also witness a lot of activity next year. A water park, beach club and 5-Star hotel in Qetaifan North project is expected to operate from the third quart of 2022, said the report. Winter Wonderland operated by IMG (International Marketing Group) will be hosted on Al Maha Island near Lusail, over 200,000 sq m, starting from November 2022 for five years.
“Lifting of quarantine measures and social mobility restrictions related to the pandemic might provide a further boost to tourism on all fronts: leisure, regional and cruise,” said the report. “Downside risks involve the government ‘re-introducing’ movement restrictions due to the spread of the Omicron variant of the COVID-19 virus,” added the report.
During the fourth quarter of this year, 580 units were added with the completion of villa compound in Al Wakrah and residential complexes in Lusail and The Pearl. Accor signed an agreement with the government of Qatar to manage 60,000 residential units as serviced apartments during FIFA World Cup Qatar 2022. Lulu hypermarket opened its 16th store on Salwa Road in Al Aziziya spread over 9,290 sqm. Qatar Duty Free (QDF) revealed growth in revenue compared to 2019 (pre-pandemic) at Hamad International Airport (HIA), driven by more than 70 percent uplift in sales per passenger over the same period.
