Rentals to keep climbing till 2022
Given Qatar’s fast- growing land value and rising construction costs, rentals in the country is expected to grow at an average 10 percent per year until 2022.
Rents of commercial space and residential units are expected to witness a phenomenal growth in the coming few months.
Rentals, which saw a slight pull back ahead of the summer vacation, are expected to recover in the coming months.
The market dynamics in Qatar’s real estate sector is fast changing. Rents are not anymore fixed solely on the demand-supply gap, but increasingly on the basis of land value and construction costs, say market experts.
Land value has gone up manifolds in the recent past. Construction costs have also increased by 20 to 30 percent over the past one year.
Rents of brand new residential and commercial units have already gone up by 25 percent to 50 percent in some most sought-after locations, due to the hike in land value and construction costs.
A latest market intelligence report has ranked Qatar first in terms of cost of living in the region. It noted that housing expense was the main driver of Qatar’s high cost of living.
Khalifa Al Muslimani, a real estate expert, said rentals had gone up by 15 percent during the first half of 2014 from a year ago and have further increased by 5 percent during the past two months.
High construction costs and growing land value are the two major reasons for the uptrend in the rentals market. In certain areas, land prices have gone up to 70 percent, he said.
According to Abashir Mohammed, a real estate sales consultant, a notable trend in the rental market is that prices have been steadily going up the whole year without dropping a single month.
In some cases, the rentals have gone up by 50 percent, for both residential and commercial units. The steady increase in rents has forced a large number of middle-income families, who have been living in Doha for several years, to move to the city’s outskirts.
shabbeer: even if they lost the world cup tomorrow, at most they'd only lose face and be embarrassed (however, this for them is a bigger deal than losing money so yes the world cup is not going anywhere); the financial implications would be tiny when contexted to their sheer wealth; other than the stadiums, the other infrastructure development would go ahead regardless; its part of the 2030 vision and the world cup only serves as a target deadline to finish everything within. The reality is, this is where the money is now and this is where people will flock to now; just like the Industrial Age of the developed nations or the California Gold rush of 1849; rape the earth, rape the environment and 'get rich or die trying'.
These are all the gifts of the World Cup. More is yet to come.
As long as you leave the country then I don't think the sponsorship issue remains. You are entitled to resign. Issue could be if you ever wanted to come baack to Qatar.
IMO rents will not rise, as Dubai, Saudi and the West construction industry is picking up...People will start to leave to get more money and live cheaper therefore allowing them to save...
@khalliwalli brother are u day dreaming....no salaris increase...qatar will hike to being expensive till the end of 2022 worldcup...after that everything will drop down...but now lets just have the burden
Haha, landlords trying to present justification for pushing their rents up. It's not supply and demand they say, ignore those empty villas and apartments on the Pearl, it's really land prices driving up rental. (Doesn't really work for accommodation that has already been built....)