JRE points to positive medium-to-long term outlook for Qatar residential & industrial real estate

World Cup Exposure Lift, Economic Recovery and Diversification Delivering Upbeat 2021 Trends

  
JRE points to positive medium-to-long term outlook for Qatar residential industrial real estate

Just Real Estate (JRE), Qatar’s leading property service provider, is projecting a positive medium-to-long term outlook for Qatar’s residential and industrial real estate as the country heads for economic recovery, the countdown to FIFA World Cup 2022, increased economic diversification with government incentives taking hold, mature investment vehicles on the horizon, and an anticipated influx of white-collar workers as the realization of the 2030 national vision nears.

The company says that while the COVID-19 pandemic and increased market supply of new properties has slowed investor rental returns, the tide seems set to turn.

JRE Chairman Eng. Nasser Al Ansari says one key positivity indicator is the projected influx of white-collar workers needed to service Qatar’s growing manufacturing, logistics, knowledge, events, and tourism industries.

“As we move towards 2030, we will see more industry and business developments within the healthcare, education, tourism and technology sectors. These newcomers will seek both rental and purchase housing options as well as leisure, service, and entertainment opportunities. Developments, such as the sustainable urban Lusail City destination and its Lusail Seef waterfront, are among the solutions and are attracting interest from buyers and investors alike. And, with Qatar opening its property market to foreigners and rewarding investors with permanent residency, the residential market will likely move from a rental-based, to a sales-based economy,” said Al Ansari.

The JRE Chairman said while current real estate investments would likely dip in value immediately after the 2022 World Cup, the fall-off would be “a normal fluctuation” with the market evening out and property valuations increasing as the country heads towards 2030.  “Real estate investment will always deliver value returns and with land in Qatar being developed at a fast pace, there is a great opportunity to buy now in prime locations to realize good future returns,” he explained.

“Lusail will provide accommodation and investment options to respond to the increasing numbers of new residents who will be attracted to Qatar, post global World Cup 2022 media exposure which will also help attract more investment, drive-up existing property values and open-up new business opportunities both from within and outside the country.  The international exposure will also elevate the country’s profile with more visitors, particularly the more affluent, seeing it as an attractive tourism destination so hospitality and tourism will be the biggest winners in the economic impact stakes.”

JRE also envisages a transformation of lifestyles within Qatar with Lusail City emerging as the country’s main business hub with an expected large migration of residents due to a world-class transport network of rail, tram and water taxis being integral to its advanced infrastructure. “Developments such as the sustainable Lusail City, Al Seef, Msheireb city and Qetaifan Island North are reclassifying the country as a distinctively developed nation. This will see new and existing residents look to move outside Doha given the development of this iconic destinations and advanced transport connectivity within and to the capital,” explained Al Ansari.

“Lifestyle expectations among both Qataris and expatriates will also increase and will demand easy access to modern healthcare and educations facilities, robust transport and IT connectivity, sustainability, access to green leisure space and a whole range of sporting, retail and entertainment options that only the new build destinations can satisfy.” 

JRE also forecasts a spur in demand for industrial real estate, particularly warehousing and data centers, in response to the growth of Qatar’s manufacturing and logistics sectors.

“Demand for warehousing facilities from the manufacturing and logistics sector is growing as Qatar’s free zone and industrial zone propositions pick up speed.  At the same time, Qatar’s digital transformation agenda is heightening the growth of e-commerce and tech-companies,” said the JRE Chairman.

Qatar is positioning itself as a regional logistics hub allowing foreign investors to import funds to finance the set-up, operation or expansion of projects and facilitating investment through a range of land and property options for offices and warehouses in the Manateq zones. Its logistics ambitions have also been boosted by container capacity expansion at Hamad Port and the Qatar Government’s US $8.2 billion investment in the Logistics Area – one of the country’s largest developments.

“We can envisage the non-residential sector emerging as the biggest revenue generator in the medium-to-long-terms providing Qataris with the highest potential investment opportunities,” said Al Ansari.

JRE Chairman also pointed to an uptick inmarket sentiment following the normalization of regional ties, the fast pace of Qatar’s COVID-19 vaccine program, its successful 2030 Asian Games bid, optimistic World Bank economic forecasts, bullish Qatar Stock Exchange trading, as well as rising LNG prices and the country’s planned expansion of LNG exports.

“The World Bank has forecast economic growth of 4.1% for Qatar next year rising to 4.5% in 2023 – the highest projected growth in the GCC which has engendered a positive vibe in the air,” said Al Ansari. “There’s a sense of confidence that post-COVID, the country will rebound quickly reaping the benefits of new legislation and regulation which is incentivizing and maturing the market.”

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