A report prepared by Al-Asmakh Real Estate Projects Company expected that the real estate sector in Qatar will achieve further growth and recovery during the current year, in light of the economic diversification policy pursued by the state and its focus on investment in non-oil sectors, the most prominent of which is the real estate sector, which is expected to make a quantum leap, especially during First Quarter.

The report was based on the indicators included in the government spending plan during 2021, which are in the interest of the real estate sector, especially spending related to infrastructure and the completion of urban development projects and road construction, which will revive construction projects and support the returns of real estate companies, so that the sector will continue to lead the first place in terms of rates Spending among all sectors during 2021.

In terms of figures according to the report, and based on the 2021 budget, the total government cash flows required for new projects are estimated at 53.9 billion riyals (about $ 14.8 billion). The Public Works Authority "Ashghal" acquires about 47.5 billion riyals of it ($ 12.9 billion), followed by Projects for developing existing areas and new citizens' lands, then integrated infrastructure works, and highway projects.

The total planned spending in the real estate sector is 194.7 billion riyals ($ 53.4 billion), of which 72.1 billion riyals ($ 19.7 billion) are for major projects.

In addition to allocations to develop citizens' lands, implement infrastructure projects and new projects, work continues to complete development projects in various sectors, especially those related to infrastructure and facilities for the 2022 FIFA World Cup.

The real estate sector is one of the fastest growing economic activities in Qatar, and a safe haven for many investors, thanks to the development policy adopted by the government and the solutions it proposes, which led to an increase in the number of operating real estate companies.

Work continues to complete development projects, especially those related to infrastructure and facilities for the 2022 FIFA World Cup (Al Jazeera)

Optimistic indicators

Regarding the optimistic indicators on which the Al-Asmakh report relied, Director of Marketing and Communications at Al-Asmakh Real Estate Projects Michael Kfoury believes that the continuation of construction work in various real estate projects in the country, despite the repercussions of the Coronavirus pandemic, especially in promising sites such as Lusail City and The Pearl Of the areas experiencing a growth in population density in the north and south of Qatar, all indicators of the health of the real estate sector in Qatar and its unaffectedness.

Kfoury told Al-Jazeera Net that the continuous improvement and development of infrastructure, especially with regard to new transport facilities, development of roads and bridges, and preparation for major events that the country will host during the next few years, are among the factors that will contribute to the recovery of the retail and hospitality sector, while at the same time supporting the growth of operations Real estate construction in these two vital sectors to keep pace with all requirements, in addition to the important openness in the tourism sector and the development of its infrastructure.

And on whether some of the government measures that have been taken recently, such as facilitating the ownership of real estate by non-Qataris in the country, have contributed to this recovery, Kfoury stated that this established solid rules for the development of the real estate sector, and encouraged the attraction of capital, and at the same time contributed greatly to support the environment The work of national companies in the private sector, which is also a decision in the interest of promoting the growth of the real estate sector and investing in it, opens promising prospects for investors.

As observers and real estate investors express their optimism about the expansion of the real estate market prospects this year, the demand for residential real estate is expected to grow by up to 30% during the first half, with the high demand for retail stores in malls and commercial complexes, accompanied by stability in the prices of office real estate.

It is also expected to achieve a growth in sales of villas by 3% during the first quarter as well, accompanied by the completion of a number of real estate projects, especially in the city of Lusail, which has an area of ​​about 1.8 million square meters.

Infrastructure projects needed to host the 2022 World Cup contributed to the real estate sector growth (Reuters)

Stimulate investment

The report suggested that this spending will support the real estate sector, in light of the government’s tendency to support private sector participation in development projects in the country, encourage local investors, stimulate the investment climate and make it more attractive for capital and benefit from modern real estate technology.

The report is based on its expectation of further growth in the coming years on the value of real estate circulation in sales contracts registered with the Real Estate Registration Department at the Ministry of Justice between November 29 and December 3 last year, which amounted to 1.58 billion riyals (about $ 430 million). .

The report also did not neglect the reference to the occurrence of a "corrective movement" in the real estate sector last year due to the decline in real estate prices in varying proportions according to regions. It stated that this decline is healthy and has no repercussions on the sector, although the last months of last year witnessed an increase in the percentage of The supply of apartments, which created a gap between supply and demand.

If the 2021 budget in Qatar has attached great importance to the education and health sectors by allocating about 17.4 billion riyals (about 4.7 billion dollars) to the education sector and 16.5 billion riyals (about 4.4 billion dollars) for health, then the most important areas of spending on them concern the development and expansion of schools and educational institutions Medical facilities and their facilities, and to the extent that spending on these two sectors stimulates construction and contracting companies, it also contributes to promoting the growth of companies producing building materials in Qatar, such as iron and cement.

The report also highlighted the contribution of the infrastructure projects needed to host the 2022 World Cup in achieving the growth of the real estate sector, after the 2021 budget allocated about 3.5 billion riyals (about 960 million dollars) for the Supreme Committee for Delivery and Legacy, which is the body responsible for developing projects for the sports facilities for the tournament.

Foreign ownership

After its decision to take practical steps to diversify the economic resources and stimulate investment in the country, Qatar last October enacted legislation related to the ownership of real estate by individuals and foreign companies in accordance with conditions and controls, after drawing the boundaries of the areas in which non-Qataris may own and benefit from real estate.

The procedures for granting residency to property owners whose value exceeds 730,000 Qatari riyals (200,000 US dollars) have also been facilitated, so that the property owner obtains valid residency for himself and his family without an applicant for the duration of his ownership of the property. Non-Qatari citizens must directly residency once the procedures for owning the property are completed.

This decision seeks to contribute to raising investment returns in the real estate sector, as it is expected that the percentage of real estate developers' returns due to sales of residential units, villas, offices and shops will increase between 15% and 18%.

The government is betting that these measures will be a catalyst for investors to enter the Qatari market and revive the real estate sector, and to encourage further development in the field of building technology, leading to the adoption of smart and environmentally friendly cities that are more attractive.