03 December 2005
Doha: Property prices with demand in Qatar currently exceeding supply by 20 per cent are expected to continue to rise until they match global levels, said Assistant General Secretary for Industrial Research and Investment Promotion at the Gulf Organisation for Industrial Consulting (GOIC).

Dr Lulwa Al Missned putting the recent increase in property prices into perspective, said: "While property prices are rising, real estate is still cheaper in the GCC than in Europe".

Against this scenario, in which the property market looks set fair for some time to come, Dr Lulwa Al Missned feels governments in region have the responsibility towards their citizens and communities and should use the growth potential in property development as an opportunity to deliver better services. "We need to take a careful look at how our cities are being developed. We need good, modern infrastructure, not just more high-rise towers", she said.

As Qatar's economy expands to meet the world's demand for its hydrocarbon resources, more and more people are coming to Qatar to service that demand, GOIC pointed out.

It said nowhere is this more evident than in the provision of quality housing for Qatar's residents, adding that shortages of supply and corresponding rent hikes have caused problems for companies and individuals alike. "But is the situation is really as bad as we think? Are we not just experiencing a necessary adjustment as Qatar catches up with the rest of the world?", asks GOIC.

Ahmed Dhaif, Assistant Secretary General for Information Technology at Goic, agreed that the property boom would continue through 2006 and also felt there was a requirement for governments to take proactive role on this aspect of the region's economy.

© The Peninsula 2005