View Full Version : Qatar real eastate realities
May 3rd, 2009, 04:02 PM
Clearly there has been a lot of off topic discussions about Qatar resulting in people being banned.
To that end I think it's clearly time to start a thread about Qatar.
We can talk about the economic realities in Qatar we can talk about the general property market in Qatar.
Hopefully no one will have any objections to this new thread. And therefore no one will be banned again.
So who is going to be first to speak out.
May 3rd, 2009, 04:06 PM
This will be an ON-TOPIC discussion forum about QATAR'S Economic realities.
This means we can talk about PROPERTY and THE ECONOMY and THE FUTURE of QATAR.
Therefore abiding by all the rules that the admins lay down.
May 3rd, 2009, 04:46 PM
THIS IS AN EXAMPLE OF ON-TOPIC DISCUSSION:
Plenty of houses, few takers
Web posted at: 5/3/2009 2:40:11
Source ::: The PENINSULA / BY MOBIN PANDIT
DOHA: As housing supplies now far exceed demand, a number of owners of newly-built apartment buildings are considering selling their properties, says a prominent member of Qatar’s trade and industry.
“But there are hardly any takers since the real estate market here suffers severely in the aftermath of the global recession,” Abdul Hadi Al Shahwani told this newspaper. “Property prices have dropped substantially.” He said around 80 percent of the apartment buildings which began construction on a large scale following a worsening housing shortage a few years ago, are now ready for occupancy.
“In addition to the adverse impact of the world financial crisis on the local property market, the fact that supplies currently remain high, there is a substantial drop in demand,” he said. Earlier, almost everyone was taking a bank loan to buy land and build an apartment structure for rental income to take advantage of the yawning housing shortage. Obviously, the real estate situation having worsened following recession, the trend has ended.
Asked why real estate agencies had almost stopped taking entire apartment buildings on rent for subletting as they did earlier when the demand for housing was huge, Al Shahwani said: “Why should they? Many building owners are offering their properties for sale.”
Land prices have come down by almost 60 percent, he said, attributing the slump to the cash crunch caused by the recession. “Liquidity is not easily available now.” According to Al Shahwani, house rentals are expected to drop further by September when the long summer break ends and people begin returning from vacations.
May 4th, 2009, 12:17 PM
I should mention I've seen TWO real estate reports. To say they've dropped by 60% on average in my opinion is VERY extreme. 30-40% in SOME lands is more like it.
Let's say however that land prices have dropped, coupled with the fact that materials have also dropped, then that would mean more affordable housing or real-estate right?
That should also boost the average investor's confidence and possibly provide the same margins in profit?
Either way, those who entered into the property market late are those truely suffering.
I shall use two properties in the Zig Zag as an example.
One purchased for 850k (two bedroom 13th floor), evaluated 8 months ago at 2.2m
One purchased 7 months ago for 1.7m (with parking on the 21st floor), evaluated 5 months ago at 2.3m
What are they worth today? Hint: It's a trick question.
thought about it? Nobody knows! It's all a guess since none have been sold! Most will NOT sell until they are ready in this climate. Most want to see what they're getting.
Even if they DID want to buy a property, banks here have made it difficult to get a loan, so that means that investor appetite is not measurable.
I will reserve my opinions on new property prices 2 months after the towers have opened.
May 16th, 2009, 01:15 PM
The reality is also that immigration to Doha must have slowed dramatically, but there is very little coverage of this kind of thing, not least because Economic data is so slow to come out!
Thanks Qataruser for setting up the forum. I hope people have something worth saying...
May 19th, 2009, 11:55 AM
Latest research reports speak better...
Shuaa Capital issues research report 'Qatar is still booming'
Shuaa Capital, the financial services institution in the GCC, today announced the publication of its latest research report on Qatar entitled 'Qatar is still booming'.
Qatar: Monday, May 18 - 2009 at 16:09
The report provides an in-depth analysis of the economy with a special focus on the banking and petrochemical sectors.
Dr Mahdi Mattar, Head of Research and Chief Economist, Shuaa Capital, said:
'The Qatari economy has seen remarkable growth over the last few years with an estimated real growth rate of 18.4% in 2008, one of the World's fastest growing economies. Going forward we expect growth of 10.2% in 2009 and 12% in 2010. When this is compared to emerging and developing economies of 1.6% and 4% for 2009 and 2010 and world economy growth rates of -1.3% and 1.9% for the same periods, it really shows the fundamental strength of the Country.'
'It is not surprising that 'Qatar is booming' is often used as a common slogan. The Country enjoyed one of the highest levels of GDP growth in 2008, expanding by almost 44% to $102.3bn (QR372.4bn),' he added.
On the equity markets, Dr Mattar commented, 'This strong economic backdrop will provide the main support for the Qatari equity market despite the persistent headwinds from the global economic slowdown which were manifested by tight liquidity, local real estate correction, and cautious investors' sentiment. We expect the Qatari equity market to record gains of c.20% over the next 12 months thereby taking the QSI index towards the 8,000 mark and the Shuaa Capital Qatar Index towards 6,000.'
Dr Mattar continued, 'The Qatari market represents a persuasive investment case when compared to other emerging markets. We believe that as the Qatari story obtains more traction from its impressive economic growth figures and the Doha Securities Market will be bound for further upside in the medium term, especially given its depressed valuation compared to its own historical levels. Our belief is reinforced by the DSM's sound fundamentals and attractive relative valuation in comparison to its peers.'
Over the past few years, the Qatari banking sector, the fastest growing in the GCC, has been capitalising on a virtuous economic cycle backed by ample petro dollar liquidity, high GDP per capita, and a massive public expenditure program.
Apart from a buoyant domestic operating environment, one of the main strengths of the industry is the support it enjoys from the government, which, in early March 2009, decided to provide relief to local banks by buying back their local equity exposure.
While we acknowledge the Qatari banking sector as a strong top-down play, we cannot ignore the fact that tightening liquidity, a general business slowdown and fairly concentrated loan portfolios (especially to consumer loans and real estate industry) pose threats to the banking industry in the short to medium term.
The abundant availability of natural gas in Qatar is being provided to the domestic petrochemical industry players at levels well below world market prices.
Combined with a material capacity expansion, this has enabled the Qatari petrochemical companies to improve their global share - a trend we expect to continue in the next few years.
We believe any improved outlook for the Qatari petrochemical industry is linked to, among other things, improved pricing and demand levels. In this regard, improved demand levels are highly dependant upon global economic activity.
May 19th, 2009, 11:57 AM
On real estate:
full report on Qatar on page 28.