Real estate experts see further spurt in house rents in 2014, as they say they expect a massive construction boom that would likely trigger a much heavier influx of foreign workers.
“We expect some half-a-million new recruits to descend here over the next two years, as mega infrastructure projects worth QR220bn ($60bn) are to be launched in the period,” said Khalifa Al Muslemani.
A real estate investment expert, Al Muslemani told The Peninsula yesterday: “Real estate is currently attracting huge investments since people presently consider it the safest avenue to park their money in”.
According to another expert, Ahmed Al Orooqi, there currently are two kinds of investors in the market: the speculators who are buying for resale, and those who are lapping up residential property for rental income.
The latter category of investors is staking their money in housing stocks as they expect the demand for housing to go up due to the rising population, he hinted.
“We expect a boom in infrastructure projects in 2014. We believe that some $30bn (QR110bn) worth of projects would be launched by the government in 2014 alone,” Al Orooqi told this newspaper.
According to some other experts who didn’t want to be identified, large-scale acquisitions of private land for various big-ticket projects, such as Musheirib and Metro Rail, have trimmed space for residential and commercial projects.
This has, obviously, led to shortages pushing the prices of land up. Real estate investors are, therefore, turning their attention to areas outside of Doha since the prices have spiralled.
“The focus now is, thus, on areas such as Umm Salal, Al Wakra and Al Daayen, among others,” said Al Orooqi. He said a number of development projects have been launched in the past two months.
Besides, a number of hotels are also coming up. “This is attracting a large number of foreign companies to set foot in Qatar.”
These companies are bringing in or hiring workers and that would further stir up the real estate market as more housing stocks would be needed, Al Orooqi hinted. Al Muslemani said that given the current high turnover volumes, the government should simplify the real estate registration process at the Ministry of Justice.
According to Al Muslemani, real estate transactions are high these days, as suggested by the weekly figures released by the Ministry of Justice, because some high-priced properties are involved. Last week (July 14 to 18), for example, when real estate deals were worth QR1.75bn, a single deal in the towers area of the West Bay was involved QR820bn, said Al Muslemani.
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