The growth of supply in the Qatar real estate market is rising to catch up to demand, offering greater choice in the low, mid, and high end, says real estate expert and CEO of Coreo real estate agency Khalifa Al Misnad.
As more varied developments near completion or come online, clients are benefitting from a wider choice of accommodation and in a greater price range.
In a market currently weighted toward luxury developments, this shift is expected to have the biggest impact on independent single professionals and lower income families.
The increase in low end housing will not, however, disrupt or distort market prices as a whole, according to Al Misnad.
“If you take a look at some of the latest Barwa Real Estate developments, in order to be eligible for affordable housing you must meet certain criteria. Income, number of dependents and various other stipulations must often be met in order to be eligible. This is so the accommodation reaches those with the greatest need and it also guarantees a degree of market stability”, he said.
There may be an effect on the price of mid and higher end accommodation with new towers coming online in the Pearl and West Bay, with three additional blocks at the Pearl initiating the hand over process by the end of July 2010.
Coreo anticipates that price fluctuations are likely to affect the sales side of the market more than rentals. “We are seeing a very high interest and an increase in the people wanting to move to the Pearl, but most are more comfortable with renting rather than purchasing at the moment,” added Al Misnad.
Moreover, movement at the top end of the market is unlikely to be dramatic since hand-overs are generally phased floor-by-floor as developers and agencies go through snag lists. At this end of the market, Al Misnad points out, supply will actually only increase gradually.
Coreo agents do not expect to see such a drastic change in rental prices at the top end of the market.
“If you need an apartment to rent now you’re not going to wait until a whole apartment block becomes available before prices potentially begin to fall. Most tenants will rent something now for a year, and if prices fluctuate, then they will always have the flexibility to move to another unit or renegotiate with their Landlord,” commented Al Misnad.
As a real estate agency, and not a developer, Coreo represents owners on the resale and rental side of the market.
Al Misnad pointed out that the company does not dictate prices to its clients but advises and consults owners on market data and what prices they can reasonably sell or lease their property at.
“We have several buyers and investors wanting to purchase at The Pearl-Qatar, but most are waiting to see what happens in the course of the next few months to see where the market heads with the increased supply,” he said.
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