Qatar’s real estate sector performance in H1 2018
It has been more than a year since the blockade began in Qatar and over this time, businesses have realigned their objectives and priorities to optimize performance based on the ‘new normal’. Undoubtedly, Qatar’s Real Estate market has been affected, given its direct relationship with business sentiments and people flow.
KPMG’s Real Estate Index has indicated that there has been a downward trend over the past 10 quarters (with the exception of retail) however, the recent softening of real estate rental and leasing costs is likely to bring down the cost of doing business in Qatar, leading to an overall benefit to the economy.
Typically, real estate markets operate in cycles and the market in Qatar is no exception. Price correction has been a key theme across real estate asset classes over the last few quarters. However, an analysis of the market since 2015 would show that prices and rates are correcting in line with the wider economic cycle
rather than it being a permanent decline.
Lower real estate prices and rentals are bringing new opportunities to the market. Property owners and landlords are increasingly presenting attractive offers and incentives to tenants such as rental-free months, free utility bills, better furnishing products and helping tenants with built to suit fit-outs. Additionally, as ownership becomes affordable, investors can be seen taking advantage of the reduced property prices and focusing more on long-term capital gains.
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© 2020 KPMG Qatar Branch is registered with the Ministry of Commerce and Industry, State of Qatar and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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