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Wednesday, August 4, 2021

Cost of living in Qatar rises in July 2014 as rent keeps climbing

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With reporting from Elysia Windrum

As many residents may have already noticed, Qatar is becoming an increasingly expensive place to live compared to last year, and the year before that.

New government figures support this observation: In July, Qatar’s consumer price index (CPI) rose 3.1 percent when compared to the same month last year, fueled in large part by a hike in the “rental, fuel and energy” category.

The CPI is a defined basket of everyday goods and services that reflect real-time prices.

The “rental, fuel and energy” group went up 7.6 percent since the previous July, an increase the Ministry of Development Planning & Statistics attributed to ongoing hikes in residential building rents.

A similar year-on-year increase was recorded in June, and also attributed to rent, which rose 7.4 percent from June 2013.

Excluding rent, which accounts for one-third of the consumer basket (and about one-third of expats’ monthly expenditure), the CPI only rose 1.3 percent since last July.

But overall, the cost of living in Qatar appears to be rising across most categories compared to 12 months ago, including:

  • Furniture, textiles & home appliances (up 5.4 percent);
  • Garments and footwear (up 2.2 percent);
  • Transport and communication (up 1.8 percent);
  • Miscellaneous goods & services (up 1.3 percent);
  • Entertainment, recreation & culture (up 0.8 percent); and
  • Medical care (up 0.7 percent).

Only the cost of “food, beverages and tobacco” dropped since July 2013 – by .8 percent.

Rental rates

This week, an unnamed real estate company forecast a 10 percent annual increase in home rental rates through 2022.

But, Janet Parry, manager of Direct Real Estate, said that such a prediction is not supported by the numbers.

Speaking to Doha News, Parry said:

“The real estate agents and property managers I have discussed this matter with note they have never been requested to submit figures to support the benchmarking of the rents and predictions. Without having a wide pool to draw on for these figures it becomes purely subjective and is the personal opinion of the ‘real estate company’ contacted.”

However, Parry acknowledged that rental rates have been on the rise in recent years.

She said prices in Qatar first began going up in 2004, ahead of the Asian Games. They peaked in 2007, then began dropping. But since 2011, rents been re-started their upward climb as the population expands to meet Qatar’s needs ahead of the 2022 World Cup.

Parry explained:

“There is an influx of expatriate professionals to Doha as the 2022 infrastructure projects ramp up not just in construction but in all the supporting roles be it teachers, medical staff etc necessary to support a growing population. The demand on the existing housing stock increases, (and) there is justification in the increase in the rent due to the scarcity of the housing in demand – whether low-cost apartments or the higher end apartments on the Pearl…

Unfortunately many larger employers cut the housing allowance to reflect the drop in rents but have, as yet, not revised the allowances to reflect the current and increasing mark.”

She added that while it’s likely that rental rates will continue to climb for the next three to five years, they may not continue the pace of growth through 2022 because large infrastructure projects will wind down before then, leading companies to scale down their manpower.

Thoughts?

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Deepak Babu
Deepak Babu
6 years ago

“This week, an unnamed real estate company forecast a 10 percent annual increase in home rental rates through 2022.” -I am so surprised!!!! Maybe a little birdy told them this is what has been decided and agreed by the real-estate cartel.

“The demand on the existing housing stock increases, (and) there is justification in the increase in the rent due to the scarcity of the housing in demand – whether low-cost apartments or the higher end apartments on the Pearl…” – Scarcity indeed. LOL

greg
greg
6 years ago
Reply to  Deepak Babu

Scarcity!!!!HAHAHAHAhahahaha

sadam
sadam
6 years ago
Reply to  Deepak Babu

Collusion maybe?

fullmoon07
fullmoon07
6 years ago
Reply to  Deepak Babu

a cartel – right description!

Louha
Louha
6 years ago

my rent increased 23% starting Sept. 2014…!!! this is crazy… the government is supposed to interfere to put a cap to annual home rental increase.. but i doubt it will do anything.. let expats get grilled on the roaster of price increases…

sadam
sadam
6 years ago
Reply to  Louha

well maybe people in government own residential / commercial properties themselves all the while earning good salary maybe it’s best they keep it that way

Michael Fryer
Michael Fryer
6 years ago
Reply to  Louha

Rental income is a healthy source of zero effort income for the people who own the properties. Can you imagine the government legislating to cap how much income these people can earn?

fullmoon07
fullmoon07
6 years ago
Reply to  Louha

the government had put a cap years ago; it worked well. As it worked well, they took it away….welcome to Qatar!

Louha
Louha
6 years ago
Reply to  fullmoon07

it’s called “liberal economy” body..!! government should not interfere with the free dynamic of the market… let the “market” runs itself and let the supply-and-demand model runs us like a herd..!!

greg
greg
6 years ago
Reply to  Louha

supply and demand not very balanced over here…

fullmoon07
fullmoon07
6 years ago
Reply to  Louha

which market? Doha the bubble? Doha market in the hands of the usual few ones? Doha is not even considered seriously as a market!

Louha
Louha
6 years ago
Reply to  fullmoon07

here, the supply-and-demand model interpretation is “take what i offer or get the f–k out of my face”!

fullmoon07
fullmoon07
6 years ago
Reply to  Louha

ahhhh! Then that’s the market here… yeap!

snclllr
snclllr
6 years ago

“The demand on the existing housing stock increases, (and) there is justification in the increase in the rent due to the SCARCITY of the housing in demand – whether LOW-COST apartments or the higher end apartments on the Pearl…” – Parry

***So for her Doha is just the Pearl? SCARCITY, LOW-COST inside the Pearl?! What is her definition of “low-cost” anyway? Is QR11,000 studio-apartment a low-cost?! Is she high on something?!

johnny wang
johnny wang
6 years ago

There seems to be no rationale or logic behind this rent increases but just greed for badly mantained properties

Myrddin
Myrddin
6 years ago

This monotonous parroting of the great fiction “shortage of housing”, to justify gratuitous rent increases, should really be starting to embarrass its brainwashed proponents?

It puts me in mind of the the annoying refrain of Dr. Who’s Daleks – only substitute “exterminate, exterminate, exterminate…’ with “Rent-inflate, Rent-inflate, Rent-inflate…” ad infinitum!!

greg
greg
6 years ago

So, an apartment that today rents for 7000, will have a rent of 16500 in 2022.

Myrddin
Myrddin
6 years ago
Reply to  greg

Absolutely, and the real estate ‘bots will be claiming that the tumble-weed bouncing through the streets of the ghost-town ‘Peril’ – formally known as the ‘The Pearl’ – is an intentional visual enhancement to the luxury living experience, and in no way connected to the vicious rumours that nobody actually lives there.

Honestly, they are all FULL, they are just saving electricity, that’s why there are no lights!

🙂

greg
greg
6 years ago
Reply to  Myrddin

I would add,as well as the many compounds, and the over crowded and packed offices in West Bay.
Let’s not forget the 99.9999999% occupancy through out the decade 2014-2024!

Myrddin
Myrddin
6 years ago
Reply to  greg

I need to wear body armour just to walk to City Centre, the crowds of residents are truly overwhelming. It’s like a football crowd on steroids

greg
greg
6 years ago
Reply to  Myrddin

I feel you! Using the new Doha Train going to City Centre..

http://1funny.com/wp-content/uploads/2013/07/the_most_crowded_cities_in_the_world_32.jpg

Myrddin
Myrddin
6 years ago
Reply to  greg

LMFCO!

Must be an Ashghal promo pic?

greg
greg
6 years ago
Reply to  Myrddin

Donno, but I found the Ad from Office Rent agencies for West Bay Towers that proves the scarcity,thus the high rents

http://sfcitizen.com/blog/wp-content/uploads/2013/03/7J7C9007-copy.jpg

Myrddin
Myrddin
6 years ago
Reply to  greg

Why do I feel minded by ‘The Tower of David’ as featured in the ‘Homeland’ series?

http://www.theguardian.com/artanddesign/gallery/2014/apr/03/tower-david-caracas-venezuela-in-pictures#/?picture=433681893&index=14

greg
greg
6 years ago
Reply to  Myrddin

hehe. where you from?

Myrddin
Myrddin
6 years ago
Reply to  greg
greg
greg
6 years ago
Reply to  Myrddin
Myrddin
Myrddin
6 years ago
Reply to  greg

Thanks for F#(k all Greg – just tried reproducing that – now I’m bleeding profusely from my lower legs, after stamping on my cat!

greg
greg
6 years ago
Reply to  Myrddin

well, just have a knife and a gun hided under your belt and you might understand greek underground 🙂

Christopher Lavelle
Christopher Lavelle
6 years ago

It is just Qatar-Economics, exploit the poorest, invite western companies to make the place appear normal and retain control of everything. The markets have such high entry barriers the “holding company’s” and “contractors” are just set families moving money from part of the family to another.
IF you were a property developer, providing homes for low and middle income earners in Qatar would just be an excuse to print money. However their is no status in that, therefore the Qatar’s don’t let them enter the market and make sure the works live in the most disgusting and run down areas. I wonder if any of the elite Qatar’s have ever been to Germany, Franc, Sweden or the Uk and seen that low income workers can still own their home and live in nice areas and are not treated subhuman. Surely they must aspire to like this. Not just a feudal back ward society where areas like the Pearl are built just to lure the super rich. If it where anywhere else and was to remain as empty for such a long time the developers would have gone bust by now.

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