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Friday, May 14, 2021

Report: Demand for affordable housing in Qatar to remain high in 2015

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Photo for illustrative purposes only.
Photo for illustrative purposes only.

More high-end housing options in Qatar are expected to become available in the coming year, but homes geared toward middle-class families will continue to be in short supply, real estate firm DTZ has said.

In its latest report, the firm said that more than 700 new units in Porto Arabia on the Pearl-Qatar are set to be handed over to homebuyers early this year, adding new supply to the nation’s strained housing market.

The three new towers – which DTZ said likely still need to be approved by Civil Defense before they can be occupied – are part of Qatar’s growing stock of luxury homes, which is increasing at a faster rate than the supply of mid-range residential accommodations.

These market dynamics mean middle-class tenants are likely to continue facing rent increases above the rate inflation in the coming months, DTZ said. Johnny Archer, the associate director of DTZ Qatar, added in statement:

“With Qatar’s population growth set to increase by over 7 percent per annum in the coming years, the real estate market will need to expand more quickly to keep pace and avoid overheating the market.”

More affordable homes needed

Villa
For illustrative purposes only

The real estate firm said developers are constructing an inadequate number of affordable homes to keep pace with demand. DTZ highlighted family accommodations – namely four and five-bedroom villas – as in particularly short supply.

The firm estimates that the number of prime residential units, such as those located in the Pearl-Qatar and West Bay/Dafna, would increase by 40 percent over the next 12 months. By comparison, the number of homes geared towards middle-income residents is anticipated to grow by 12 percent.

The DTZ report is the latest bit of grim news for tenants in Qatar who are seeing rental costs consume an ever-growing share of their monthly income.

Late last year, another real estate firm – Colliers International – found that the average expat household in Qatar is spending more than a third of its annual income on rent. That suggests that the city’s housing market is becoming unaffordable for many residents.

Like DTZ, Colliers concluded that developers are not building enough low and mid-cost housing to keep up with Qatar’s rapidly expanding population.

Barwa City
Barwa City

Anecdotally, many residents say they are facing steep rent increases as their leases turn over. Last week, tenants in The Park Residences – a neighborhood within Barwa City – told Doha News that their rent would be going up by thousands of riyals a month as their landlord phased out the promotional rates used to attract initial residents to the new community.

And officially, government statistics show that rent rates – which are lumped in with fuel and energy prices – increased 7.3 percent year-over-year in December.

Hotels to be ‘tested’

Other highlights of DTZ’s report include:

  • The supply of office space in West Bay and Lusail is set to jump 18 percent, or 300,000 square meters, to approximately 1.94 million square meters by the end of the year. While no specific buildings were mentioned, the World Trade Center Doha – which reportedly contains nearly 142,000 square meters – appears to be nearly ready for occupancy. DTZ said that government-related entities have been responsible for most of the leasing activity over the last year and that the new supply will push vacancy rates above the current 9 percent;
  • Despite the strong performance by Qatar’s hospitality sector in 2014, local hotels will be under pressure in the coming years as some 4,000 new rooms hit the market in 2015-16. Occupancy levels are likely to be “tested” in the medium term as new hotels are constructed to meet the country’s obligations to build tens of thousands of new hotel rooms ahead of the 2022 World Cup;
  • There are nine malls currently under construction that, once completed, will nearly triple Qatar’s current supply of 590,000 square meters of retail space.

Here’s a copy of the full report:

DTZ Qatar Q4 2014 Report

Thoughts?

32 COMMENTS

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The_Angry
The_Angry
6 years ago

“going up by thousands of riyals a month as their landlord phased out the promotional rates used to attract initial residents to the new community.”

There was no such things as promotional rates!!!

The main reason for our rental increase, which is 50% in my case, is the lack of laws to protect the tenants from the landlords’ greed. Many families will end up on the streets.

Qatar Authorities, we need your help.

Yacine
Yacine
6 years ago
Reply to  The_Angry

50%? Seriously? Thank God my landlord is much more nicer than yours 🙂

FalconFlyer
FalconFlyer
6 years ago
Reply to  The_Angry

They made us the guinea pigs by renting and filling up the apartments, when there was no one to take them. Now, they have eyes only for money.

Expat77
Expat77
6 years ago
Reply to  FalconFlyer

Blame the Indian n Egyptian managers who advise local businesses how to make a killing when the going is good. They r laughing all the way to the bank.

Michael Fryer
Michael Fryer
6 years ago
Reply to  Expat77

Some people are making a fortune out of being in the ‘property business’ in Qatar. Perhaps this is where your rental increase is going?

http://www.dailymail.co.uk/news/article-2942838/The-supercar-addict-Millionaire-Qatari-businessman-26-owned-Bentley-Ferrari-drives-270-000-Rolls-Royce-Ghost.html

FalconFlyer
FalconFlyer
6 years ago
Reply to  Michael Fryer

In both the business he is engaged in, people can expect the reasonable or the ridiculous….good inheritance.

FalconFlyer
FalconFlyer
6 years ago
Reply to  Expat77

Had the local business owner got this advice from a manager other than Indian & Egyptian, he would have not opted for the killing profiteering ??

desertCard
desertCard
6 years ago
Reply to  Expat77

Is that fact or conjecture?

Expat77
Expat77
6 years ago
Reply to  desertCard

Usually are…but then add Lebanese Sudanese Palestine…etc…They know all loopholes in the law to profiteer..

ShabinaKhatri
ShabinaKhatri
6 years ago
Reply to  Expat77

Deleting for singling out nationalities for no reason.

Expat77
Expat77
6 years ago
Reply to  ShabinaKhatri

Regret.. it was not intentional..but by numbers they make the majority. Essentially wanted to say tht its the expat managers in most cases who undercut expat salaries and benefits…

angel_peach
angel_peach
6 years ago
Reply to  The_Angry

I really cannot see their basis on these ever growing rental rates! What? They just “feel” like their rates should increase?

Omar
Omar
6 years ago

Actually there is a law, that only 10% can be increased annually

Deepak Babu
Deepak Babu
6 years ago
Reply to  Omar

Nope. That law was taken out on residential properties a long time back.

Michael Fryer
Michael Fryer
6 years ago
Reply to  Omar

There *was* a law about residential rental increases. That law lapsed years ago and the government never renewed it.

There is still a law limiting the rental increase of non-residential property, but there is no limit whatsoever for how much your landlord can increase your residential rent.

Jaded
Jaded
6 years ago
Reply to  Omar

Currently this only applies to commerical properties, no such protection for residential

Salama
Salama
6 years ago

So happy to see that this is being reported on. Given that the vast majority of workers here are middle-income, it’s important to be able to accommodate them as well. Thank you.

outdoorsboys
outdoorsboys
6 years ago

If you cant afford to live in Qatar, you wont stay. Simple. People come here to make money for their future, not just hold body and soul together. There must be more properties built for those middle income families with rent controls. Rent plus school fees and transport is a killer combination, making Qatar less desirable than it was 5 years ago.

Expat77
Expat77
6 years ago

Non regulation of businesses and laxity in rules results in consumers and tenants being taken for a ride. With less and less of savings here, expats will soon look elsewhere in GCC.

Anonymouse
Anonymouse
6 years ago
Reply to  Expat77

Soon?

sicti
sicti
6 years ago
Reply to  Anonymouse

Tomorrow 🙂

A_qtr
A_qtr
6 years ago

We need to stop calling the Pearl “luxury”

MIMH
MIMH
6 years ago
Reply to  A_qtr

Shhsss it falls the newly landed westerners they are living somewhere great….

Yacine
Yacine
6 years ago
Reply to  A_qtr

It is to my knowledge the most luxurious in Qatar. And pricewise it is the most expensive also 🙂

A_qtr
A_qtr
6 years ago
Reply to  Yacine

Four Season apartments have and will always be the most luxurious .. There are a few towers in west bay by the embassies I consider to be much nicer than anything in Pearl but that’s about it.. Pearl is good and practical but that’s not luxury

MarkDoha
MarkDoha
6 years ago
Reply to  A_qtr

Absolutely spot on. Very few towers on The Pearl are genuinely anywhere close to luxury. Most are hastily built and cheaply finished. Luxury is a derivation of quality, not price.

MIMH
MIMH
6 years ago

A lot of the so called middle income people work in the private sector and Qatar doesn’t really need you. What they need is those people to keep the LNG flowing and thousands of labourers for the infrastructure projects. Both types do not need low to middle standard housing to rent.

Plus Qatar is paranoid of being overrun by millions of low to middle class Indians setting up ghettos. Try and get an Indian visa now and it’s close to impossible.

Yacine
Yacine
6 years ago
Reply to  MIMH

Not really. The middle class work also in the government and not all of them enjoy government housing. Moreover, most Egyptian and Sudanese for example are considered low to middle class. They consitute a big part of the white collar population here and you cannot house them in labourers camps. If you add to them Indians, Filipinos and other nationalities, that is roughly 20 to 30 percent of the population that needs to be housed in decent and reasonably-priced apartments. So is your solution for them to tell them go home Qatar does not need you? 🙂

MIMH
MIMH
6 years ago
Reply to  Yacine

I’m indifferent to what Qatar does as the Americans say, I have not skin in the game. As for people working for teh government they are not needed, government jobs are stuffed with Qataris. The Qataris can handle nearly all government functions.

I agree you cannot house a large number of white collar workers in labourer camps, the question I am raising does Qatar need them at all?

Heisenberg
Heisenberg
6 years ago

Great. Let’s build more expensive high-end unaffordable houses.

Yousef
Yousef
6 years ago

…..and then the house of cards built with “smoke, mirrors and a few good

Daniel Schriefer
Daniel Schriefer
6 years ago

Qatar, whoever that is, Qatar doesn’t give a shyte about you spending a third or all of your income on rent. If YOU don’t like it, go home!

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