XP
October 4th, 2009, 11:29 AM
Supply exceeds demand in housing sector: study
http://www.gulf-times.com/mritems/images/2009/10/4/2_318129_1_252.jpg
Supply volumes largely exceed the actual demand for real estate in the market, a study by Century 21 Qatar shows.
“This is seen in the number of under construction buildings spread across the city (Doha),” the prominent real estate sales network organisation said.
According to Century 21, residential apartments represent the highest activity in the construction market and this was meant as response to the shortage of residential units due to population growth.
It is estimated that approximately 5,000 residential units are entering the market while construction activity is remarkably seen in areas such as Umm Gwalina, Al Matar, Al Ghanem, Al Hitmi, Mansoura, Bin Mahmoud, Muntazah and Al Sadd.
“Such large supply number combined with economic slowdown led directly to a decline in residential demand and affected harshly the rental rates since the last quarter of 2008,” Century 21 said.
Prices and rental have declined up to 35% since October 2008, almost to the level of Q1, 2008, it said. The declining demand has forced villa owners to reduce rental rates by 25% in some cases.
“Negativity in office space sector is seen on both sides of demand–supply equation. The increase in office space supply was concentrated in a number of vital commercial hubs of the city, most importantly West Bay,” the study shows.
Nevertheless, a ‘significant flight-to-quality’ move in the office market in Doha is noticed in the previous months, it said.
But, Century 21 said, an analysis showed that demand was heading towards ‘stabilisation at a slow pace’ after the continuous decline in real estate demand witnessed during the summer and Ramadan months.
“Signs of recovery have been noticed during September with a relatively increasing demand for properties. Our sales department records indicate a remarkable recovery in terms of leased properties and number of inquiries last month. Though the decline in rental rates is still dominant; changes are now minimal and that will lead to a stable market eventually,” Century 21 said.
It said the current slowdown has given the opportunity for all to reshuffle papers, reschedule priorities, change strategies and study in-depth the possible failure and success lesson of the international markets.
Al Raya Newspaper (AR)
http://www.raya.com/site/topics/article.asp?cu_no=2&item_no=474481&version=1&template_id=35&parent_id=34
Gulf Times (EN)
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=318131&version=1&template_id=36&parent_id=16
Al Watan (AR)
http://www.al-watan.com/data/20091004/innercontent.asp?val=ecs4_1
http://www.gulf-times.com/mritems/images/2009/10/4/2_318129_1_252.jpg
Supply volumes largely exceed the actual demand for real estate in the market, a study by Century 21 Qatar shows.
“This is seen in the number of under construction buildings spread across the city (Doha),” the prominent real estate sales network organisation said.
According to Century 21, residential apartments represent the highest activity in the construction market and this was meant as response to the shortage of residential units due to population growth.
It is estimated that approximately 5,000 residential units are entering the market while construction activity is remarkably seen in areas such as Umm Gwalina, Al Matar, Al Ghanem, Al Hitmi, Mansoura, Bin Mahmoud, Muntazah and Al Sadd.
“Such large supply number combined with economic slowdown led directly to a decline in residential demand and affected harshly the rental rates since the last quarter of 2008,” Century 21 said.
Prices and rental have declined up to 35% since October 2008, almost to the level of Q1, 2008, it said. The declining demand has forced villa owners to reduce rental rates by 25% in some cases.
“Negativity in office space sector is seen on both sides of demand–supply equation. The increase in office space supply was concentrated in a number of vital commercial hubs of the city, most importantly West Bay,” the study shows.
Nevertheless, a ‘significant flight-to-quality’ move in the office market in Doha is noticed in the previous months, it said.
But, Century 21 said, an analysis showed that demand was heading towards ‘stabilisation at a slow pace’ after the continuous decline in real estate demand witnessed during the summer and Ramadan months.
“Signs of recovery have been noticed during September with a relatively increasing demand for properties. Our sales department records indicate a remarkable recovery in terms of leased properties and number of inquiries last month. Though the decline in rental rates is still dominant; changes are now minimal and that will lead to a stable market eventually,” Century 21 said.
It said the current slowdown has given the opportunity for all to reshuffle papers, reschedule priorities, change strategies and study in-depth the possible failure and success lesson of the international markets.
Al Raya Newspaper (AR)
http://www.raya.com/site/topics/article.asp?cu_no=2&item_no=474481&version=1&template_id=35&parent_id=34
Gulf Times (EN)
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=318131&version=1&template_id=36&parent_id=16
Al Watan (AR)
http://www.al-watan.com/data/20091004/innercontent.asp?val=ecs4_1