DOHA: With the demand-supply gap continuing to have a drag on Qatar's real estate market, the country is expected to witness the launch of $10bn worth projects in the next couple of years.
Market reports say at least 18,000 buildings, residential and the commercial, are under construction in Qatar. Of the proposed 160 towers scheduled to be launched by 2022, at least 13 towers would be completed in 2013.
According to the latest bulletin issued by the Real Estate Registration Department with the Ministry of Justice, the size and values of real estate transaction have declined substantially. The transaction for the week of December 19-22 has declined 24 percent as compared to the previous week.
The spending in the real estate sector for the next year would be largely concentrated on mixed-use commercial buildings. An estimated $35.5bn projects is expected to be launched by 2015, which represents 48 percent of the total expenditure in the country's construction activity during the period, Al Arab reported.
Despite the huge gap in the demand and supply, the announcement of new projects has triggered a steep hike in the land value in key locations. There has been a 30-40 percent hike in the areas like Mansoura, Bin Dirham, Freij bin Mahmoud, OIld Airport Area, Umm Ghwalina and Al Wakra. The prices have also gone up in Muaither South, Muaither North and North Rayyan. The prices at Umm Salal Ali, Al Gharaffa and Al Rayyan have also gone through the roof.
The slump in Qatar's property market has forced Industry Qatar (IQ) to sold its stake in Fereej Real estate Company. In its filing to Qatar Exchange, the IQ said the company's decision to sell the stake was in view of the 'development' in the real estate sector.
In a separate filing the Gulf International's Al Koot Insuracne and Reinsurance unit said that it too had liquidated its position I Fereej. Shares of IQ and Gulf International were down shortly after the deal.
Union development Company (UDC), the developer behind the Pearl Island project, was in talks to issue 80 million new shares to a state pension fund, Reuters reported on Friday
Qatar sovereign fund's property investment arm, Qatari Diar, is reportedly looking to overhaul its strategic goals.
© The Peninsula 2012
