Real Estate Investments Soar From Qatar Freehold Zones
According to researcher DTZ/Cushman & Wakefield’s report, investments in real estate are spurred dramatically by the expansion of freehold zones in the country. The team “identified an increase in investment opportunities as a result of the implementation of Law No16 of 2018, which was introduced in March 2019 and expanded the number of freehold zones from three to 10.”
As the investment landscape of the Qatar real estate market expands, more non-Qatari real estate investments in West Bay, Lusail, and Onaiza will increase. These zones will encourage foreign buyers to make the most of the increasing premium products in the market, demonstrated by the increase in leasing inquiries and various investment activities in the sector.
In the first half of 2019, there has been more than 55,000sqm of office space inquiries, and in the second quarter, the sector has been buzzing with activity especially from companies operating under the Qatar Financial Centre (QFC). “Business sentiment indices show confidence in the Qatar economy to be at a four year high, which will translate into an increased demand for quality office space – although the traditional office accommodation has to compete with managed workspace,” said DTZ.
During the month of May this 2019, the overall occupancy rate was 66% based on data from the Ministry of Development Planning and Statistics (MDPS). “Our findings in H1 demonstrate the robustness of the Qatar real estate market which continues to show stability when compared regionally. The very positive business sentiment is translating into an increase in office space inquiries, which in turn drives residential demand and retail markets,” said Edd Brookes, general manager of DTZ/Cushman & Wakefield (Qatar), in a report.
Meanwhile, residential rents have stabilised, and hotel occupancy rates have increased. “The increasing affordability of apartments in Qatar has seen an increase in demand for apartments in prime locations such as The Pearl-Qatar and West Bay, while residential towers in Lusail have also recently come to the market,” DTZ said. “The efforts by Qatar Tourism Authority have significantly boosted visitor numbers year on year and rental levels have now reached an affordable level which we believe will stabilise from Q1, 2020.”
These incredibly positive numbers only prove that the real estate market is increasingly lucrative right now, and will seemingly continue to grow and expand in the years to come, due in part to the continuous developments and both Qatari and non-Qatari investments in the sector.
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