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Qatar's economy seems likely to continue its robust growth performance in 2012, although the pace of growth is likely to slow down in 2012. The country remains at peace with itself, despite civil unrest in the neighbourhood. For the commercial real estate sector, the huge amount of development under way in preparation for the 2022 World Cup is supporting developers well. The government is planning to invest more than US$125bn over the next five years in energy and construction projects, as part of its development strategy and more than QAR130bn (US$35.7bn) on residential and business construction projects.

Developments include a new US$25bn railway, metro system and numerous large building projects. The city of Lusail, where frenetic activity is under way, will see much of the basic infrastructure and new utilities facilities be completed within the next few months. Competition in the industry has increased in light of the amount of money involved in massive 2022 World Cup-related infrastructure projects and this has attracted firms from overseas, according to Jones Lang LaSalle.

According to Qatar-based real estate company Century21Qatar, real estate transactions in the country decreased by 6% in August 2011 compared with July, reports Peninsula Online. Total real estate transactions for August were reported at US$423mn, with 68% being land deals as opposed to houses or villas. The Al-Wakrah region of Qatar had the largest number of real estate transactions in the country during August 2011, according to the Gulf Times.

Despite regional instability, Qatar itself is a remarkably settled state and, well into the medium term, the economic prospects include strong growth, including continued expansion of the crucial energy sector and substantial current account surpluses.

Some of the key opportunities currently in the real estate market are: 

Barclays Wealth released a report showing the financial behaviour of 2,000 High Net Worth Individuals (HNWIs) and, of the Qatari individuals surveyed, 100% had investments in real estate and 100% believed it would be a safe sector for investment over the next 12 months.

Considering that we are not expecting any let-up in Qatar's robust growth performance in 2012, although the pace of growth is likely to slow in 2012, Qatar's construction industry has much to look forward to. This is especially true in light of the development of property related to the  2022 FIFA World Cup. Construction Week reports that the spending for the World Cup could reach US$220bn and this could include US$50bn on updated transport infrastructure, US$77bn on facilities for the fans and US$45bn on the development of Lusail City, which will accommodate 200,000 people.

Qatar is improving organisation of its real estate sector to help reduce illegal operations, and so has announced that real estate agents operating in the country without a licence will now be subject to a QAR50,000 (US$13,700) fine, according to AMEinfo. 

Some key risks to the current real estate market are:

So far, Qatar has escaped any political unrest of its own but the neighbourhood is unsettled and, particularly if Iran is involved, Qatar could see trouble reach its shores.

Jones Lang LaSalle warns that demand is likely to be rather less than the huge amount of new supply coming onto the market.