INCREASING SUPPLY

During 2019, 60 percent of the added residential supply was concentrated in Lusail, The Pearl-Qatar and Al Dafna. Last year was an instrumental year for real estate of Qatar as a result of introduction of foreign investment-friendly laws such as a legalization of foreign ownership for various asset classes in 10 locations and granting automatically renewable residence permit for a period of five years for expatriate owners and beneficiaries of real estate.

Majority addition of apartment supply was seen in The Pearl-Qatar, Lusail and Msheireb. In addition, residential compounds were added in peripheral areas of Al Rayyan Abu Sidra, Abu Hamour, Al Wajba and Baaya, Al Wakrah, Umm Salal and Al Khor.

BEYOND FIFA 2022

Qatar’s real estate sector witnessed deals valuing more than QR22.8bn last year that showed the strong interest of investors in country’s buoyant real estate market.
Further, it is clear from the recent budget announcement that the government spending has moved beyond FIFA related expenditures and is now committed in upgrading the infrastructure of the country. Efforts to bolster the private sector in the country with introduction of new laws such as 100 percent foreign ownership will help steer the economy in the right direction.
Going forward, the housing market is expected to remain buyer-friendly, with offers likely to continue to attract customers.

BUDGET 2020

Qatar announced a surplus 2020 annual budget with a projected QR211bn in revenue and QR210.5bn expenditure. The revenue forecast is based on an oil price assumption of $55/barrel, the same level as in the 2019 budget. The budgeted expenditure is the highest in the past five fiscal years, reflecting the country’s commitment to the completion of multiple development projects across multiple sectors, including those related to National Development Strategy 2018-2022. The budget is expected to achieve a surplus of QR500m.

The 2020 budget includes allocations for the development of 13 new housing areas for nationals, to provide different facilities such as water, electricity and sewerage networks, and roads. The housing plan will cost QR12bn over 5 years. New housing areas will be handed over to nationals after the completion of the required infrastructure, according to the approved schedule.