Qatar’s booming real estate market is paving the way for new investment avenues
With the global real estate market experiencing uncertainty, Qatar has emerged as a new investment haven, thanks to rising demand, a strong economy, and excellent market conditions.
Like many sectors, the global real estate market is currently navigating a period of marked volatility. With strong economic headwinds, rising interest rates, and underlying fears of property market correction, uncertainty reigns supreme.
Yet amongst this turmoil, seeds of opportunity are emerging, namely in the real estate markets of the Persian Gulf. Buoyed by the transformation of existing economic models, these markets are defying the overarching global narrative of stagnation to paint a different picture for potential investors.
And leading the real estate charge, is Qatar.
A new era of investment
Qatar’s steady economic growth is ushering in a new era where the state is diversifying its interests away from traditional industries.
With non-oil sector-based GDP estimated to expand significantly due to diversification plans found in Qatar National Vision 2030, the country has begun to invest in domestic infrastructure and digital capabilities.
EY and Invest Qatar’s real estate report notes that Qatar’s 5G digital infrastructure is ranked fourth in the world. Its healthcare system is in the global top 20. The HSBC Expat Survey placed Qatar in their top ten list of countries to live and work. And for the fifth consecutive year Qatar has been ranked the safest country in the world, according to the latest Numbeo Safety Index.
But as Qatar has pivoted towards modernization and consumer-facing industries, attention has naturally turned to real estate, which is required to accommodate the new residents and visitors flocking to the country.
This is where the opportunities lie for potential investors.
Domestically, real estate is one of the fastest growing sectors in the country, contributing over $12bn to the nation’s GDP in 2021.
Meanwhile, a growing concentration of middle to high income earners is likely to increase spending on housing, having a positive knock-on effect on the real estate sector.
Looking further afield, Qatar’s rental and hospitality markets are also flourishing. The country is enjoying a strong rebound post-Covid and is experiencing an acute rise in demand on the back of hosting the World Cup, with Fitch Solutions estimating that Qatar’s GDP will rise by 4.1% this year as a direct result of the tournament alone.
Catching the attention of a global audience
Qatar’s distinct position as an evolving, but stable market has created a unique proposition for international investors. The centrality of this proposition, in real estate terms, can best be seen through the country’s presence at MIPIM – the world’s leading real estate market event.
MIPIM brings together influential players from international property sectors, offering unrivalled access to worldwide sources of capital and development projects.
Qatar’s participation in the event is notable, as it represents a shift towards more cosmopolitan market integration. By attending, it will showcase key projects in the real estate pipeline, revealing the true opportunity of investing in Qatar’s real estate market – and the wider benefits it offers such as a competitive business climate, and unparalleled market access opportunities.
Grounded by a set of free market government reforms that provide the opportunity for foreign nationals to obtain residency permits, investors can take advantage of vast residential transaction volumes and virtually unmatched levels of real estate occupancy.
The domestic development of financial, business and leisure infrastructure is a major contributing factor to steadily rising property prices in the region, and offers a greater sense of security for foreign investment.
And the numbers speak for themselves. The real estate price index posted yearly growth of 2.6% during March 2022 in comparison with March 2021, reflecting the resumption of investors’ confidence in Qatar’s real estate market.
At a time when uncertainty dominates market forecasting, Qatar’s booming real estate ecosystem appears to be an exception to the rule.
While the attractiveness of Qatar’s offering reflects wider trends of recovery and growth across the Arabian Gulf, the Qatari market looks to be a crowning achievement, creating an environment with a wealth of opportunities for those seeking to invest.
