Will Qatar Real Estate Prices Go Down In 2023?

According to a survey, Qatar real estate prices have increased due to an increase in demand before the World Cup 2022 but are predicted to decline the following year again.

According to real estate consulting firms, apartment rent rises in the Gulf of Qatar have also accelerated this year and are already more than 30% more than they were in June last year. Previously, they had also increased by 5% to 7% in the first quarter.

The consultancy company highlighted that landlords had “advantaged of a rise in demand” connected to the FIFA World Cup, scheduled as well to take place in Qatar in December and November, in its Q2 Real Estate Review for Qatar.

Causes Of Increase In Qatar Real Estate Prices

Multiple factors have also led to an increase in real estate prices. These factors include;

Covid 19 Pandemic Effect On Qatar Real Estate Prices

The Covid 19 epidemic has brought about global and regional industry disruption. Qatar has shown remarkable resiliency despite the challenges brought on by the limitations and travel embargoes enforced to manage the spread.

Industries will need to adjust and re-adjust their strategies more than ever in the post-corona world to keep up with the present business scenario changes. What was once seen as the “norm” in the real estate industry has altered with the rise of online shopping and remote working. The loss during the Covid 19 resulted in causing an increase in real estate projects.

FIFA World Cup 2022 And Qatar Estate

According to Metropolis Intelligence Report 2022, the country’s current rental rises are predicted to stop in 2023. As per researchers, real estate trends in Qatar, regarding the freehold Zones and the increase in rentals in advance of the FIFA World Cup Qatar 2022, is probably just temporary due to the area’s demand.

According to the report, the commercial sector has also experienced an uptick in activity, especially in Lusail and Pearl Qatar. However, rental rates are still being affected by the industry’s overall oversupply.

The residential market for real estate has experienced an increase in activities in 2022, which can be attributed to the World Cup’s increased demand. For the first time since 2015, there are signs of rental price hikes in Qatar; however, this increase in the real estate sector is probably just temporary because demand is predicted to decline in 2023.

Increased Tourism

After the whole covid situation in Qatar and the world, tourism is taking centre stage for many countries, including Qatar. After experiencing a severe decline in Revenue per available room, Qatar has moved its attention to localization and creating regional attractions to diversify its economy. The fact that citizens of 88 nations were given visa-free entrance, along with the fact that 80% of the world’s population can reach Qatar in just 6 hours by plane, has helped to establish Qatar as one of the world’s most open nations.

Qatar’s efforts to expand its tourism industry place a strong emphasis on hospitality, especially in the years also leading up to the FIFA World Cup in 2022. The ExxonMobil Tennis Open and a variety of major exhibitions, such as Jeff Koons’ Lost in America exhibition and Christian Dior’s Designer of Dreams, have all helped to boost the nation’s tourism business. The increase in tourism and interest of ex-pats in Qatar has relatively increased the real estate market prices in Qatar.

Enhanced Environmental Social Governance

The real estate in Qatar is on pace to cut its carbon footprint and set the stage for also more environmentally friendly future for the nation. The Doha Metro, Msheireb Downtown, and Lusail City are three of the country’s most recent major projects.

As evidenced by their focus on renewable energy options like on-site energy generation, LED lighting systems, and carbon dioxide monitors, these three projects have integrated Qatar’s sustainability initiatives into the core of their development plans.

Qatar should continue to be driving its real estate industry forward as a sustainably conscious, contemporary, and increasingly progressive market with a continued focus on decreasing its carbon footprint, trying to uphold its environmental well-being agenda, and trying to implement and updating its Environmental and social standards as per regional and global developments. The enhancement in ecological and social governance requires more money to get Revenue for ESG. Qatar real estate prices, have seen a hike.

Growth In Technology           

Property technology is a crucial tool that can support Qatar’s sustainability objective through real estate and speed up the industry’s expansion (PropTech). PropTech’s emergence may be highly advantageous to Qatar’s real estate market. Thus it is a field that should be further investigated to enjoy its rewards and promote wealth creation for the sector. Qatar has recently demonstrated its understanding of the strategic advantage that can be obtained by utilizing PropTech.

The need for growth in technology in the property sector demands a high cost, which tells us another reason for the increased Qatar real estate prices at the time.

Will The Prices Go Down In 2023?

Many active projects and more will start next year, and the economy will keep growing for another 20 years as per vision 2030.

According to a present article in a local newspaper, several renters in Qatar complained about the unexpected and dramatic rise in housing unit rates. They urged the relevant authorities to deal with the problematic issue.

The World Cup, which will take place in the coming months, is one of the main reasons to blame for the recent surge in real estate prices. The experts anticipate that the market will return to normal and balance out following the first quarters of 2023 since there will be a sufficient supply of property at affordable rates in the middle east.

Conclusion

Qatar is still in the growth phase and requires money for developing and modernization of real estate structures. Thus the increase in prices is justified. Nonetheless, the price hike is timely and will go back to normal once the World cup is over in 2023.

Frequently Asked Questions

What drives up the cost of real estate?

A housing bubble is a brief period characterized by high interest, short amounts, and artificially inflated prices. Numerous factors, such as increased economic prosperity, low-interest rates, a broader selection of mortgage products, and straightforward credit access, contribute to these bubbles.

Is buying real estate in Qatar a wise investment?

It’s high time and a terrific investment opportunity for everyone now that Qatar has opened its real estate market to experts and foreigners. This trend in the real estate market benefits not only foreigners but also Qataris. New developments and freshly developing areas are progressing in the developing phases.