Qatar continues to pursue a policy of economic diversification, by focusing on investment in non-oil sectors, and the real estate sector is witnessing a wide renaissance in construction operations in various regions, taking advantage of the factors of growth and stability compared to other economic sectors, and is likely to remain the second most attractive sector for capital during The next two years, and one of the country's economic pillars after the energy sector.
In a recent report of Al-Asmakh Real Estate Projects, it is expected that the real estate sector will achieve the best returns during the next two years, and maintain its position as one of the safest and strongest sectors, in light of the continued government spending on major development projects included in the 2021 budget, and the great stimulus that this represents for real estate companies. , And development of the operational environment compared to 2020.
Despite the challenges imposed by the Corona pandemic and the accompanying decline in global oil prices, the real estate sector in Qatar was able to coexist with it, achieve qualitative leaps, and control the decline in demand for it, compared to some Gulf countries, and benefit from government facilities and support represented by the positive stimulus packages that expanded Department of non-Qatari ownership and use of real estate, according to the conditions, controls and benefits included in Cabinet Resolution No. 28 of 2020.
These decisions made a qualitative leap in the development of the real estate sector in Qatar, and strengthened its investment attractiveness in the region in a way that serves the economy and the legislative and legal environment that stimulates investors, and guarantees them safe and promising investment at the same time, in a way that benefits the local and foreign investor on the one hand, and the economy and the real estate sector. In the state on the other hand;
This raises the expectations of observers and appraisers that the sector will achieve a growth rate estimated at 30% over last year.
The law grants those who own a real estate unit of about 200,000 dollars (equivalent to 730,000 riyals) the right to reside with the family without an applicant, and permanent residence in Qatar for those who invest one million dollars (3.65 million riyals)
This led to the registration of more than two thousand freehold and usufruct deals during the last period, which reflected positively on the performance of the real estate market.
According to the report of Al-Asmakh Real Estate Company, the real estate sector has witnessed a corrective movement in prices in recent months, which may continue until the end of the current year, after real estate prices decreased in varying proportions according to regions, a move that the report deems healthy and gives greater attractiveness to the sector, and contributes to the recovery of the movement Buying and selling again, after reaching a relative stagnation.
The report also expects the retail sector to strengthen its leadership as one of the most prominent real estate sectors that is expected to witness significant growth during the coming period, after a variety of shopping center projects that are currently being constructed have been revealed, as estimates issued by specialized real estate companies show that there are more Of the 750,000 square meters of retail space under construction, which is scheduled to open during 2021 and 2022, this represents a 110% increase over the current supply.
The real estate sector in Qatar managed to live with the challenges of Corona and achieve important profits (Al-Jazeera)
Huge spending
The total planned spending in the real estate sector in Qatar within the 2021 budget is estimated at about 194.7 billion riyals (about 53 billion dollars), of which 72.1 billion riyals (about 20 billion dollars) are for major projects, in addition to allocations for the development of citizens' lands, and the implementation of infrastructure projects and new projects.
Michael Kfoury, Director of Marketing and Communications at Al-Asmakh Real Estate Projects, believes that the long-term path for the real estate sector in Qatar is good, especially with the significant government investment in infrastructure projects, which provides major and important support to the real estate sector on a larger scale.
Kfoury told Al Jazeera Net that Qatar is making unremitting efforts to gain the world's appreciation for the activities it promotes, including various international sporting events, and therefore it is expected that all of these factors will play a constructive role in crystallizing a bright picture for the future of real estate as a whole.
The initiative of the Supreme Committee for Delivery and Legacy, which is responsible for developing projects for sports facilities for the 2022 World Cup, attracted apartment owners to register their desire to rent them within the accommodation program for visitors to Qatar during the preparation for the tournament and during competitions, and stimulated investors in residential real estate, and allowed the participation of projects. Construction is underway in this decision, provided it is ready in 2021.
The total planned spending in the real estate sector in Qatar within the 2021 budget is estimated at about 194.7 billion riyals (Al-Jazeera)
Financial facilities
Without the multi-faceted support, this sector would not have witnessed a remarkable recovery, as its growth benefits from the financial facilities provided by banks and banks in Qatar, as the total of loans and local credit facilities provided by banks to the real estate sectors and contractors in the private sector amounted to nearly 190.4 billion riyals (about 52). One billion dollars) by the end of December 2020, recording an increase of about 5 billion riyals (about 1.4 billion dollars) in the real estate sector, and about 3.6 billion riyals (about one billion dollars) in the contractors sector on an annual basis.
This increase in the volume of credit facilities granted to the real estate sectors and contractors confirms that the real estate construction operations are continuously growing, in addition to the increase in the procurement process in the contracting sector, and this is also confirmed by the growth in the volume of real estate transactions last year by 36.2% on an annual basis, to reach more than 31 One billion riyals (about 8.5 billion dollars).
In order to avoid any potential risks, this growth remains under the eyes of the Qatar Central Bank, and is subject to the real estate price index that was introduced in 2011, with the aim of measuring real estate prices accurately, and to enable banks and banks operating in Qatar to evaluate real estate credit portfolios, as this indicator represents an early warning of any changes Fresh on the market, it may have a negative impact on the banking credit sector for real estate and construction, and it is updated quarterly, based on the periodic data of the Ministry of Justice.
This banking procedure is in line with the global banking trend that adopted this mechanism in the wake of the global financial crisis in 2008, as central banks adopted the early warning indicator when setting monetary policy.