Property Market Report_ 3rd Quarter 2009
Transcript of Property Market Report_ 3rd Quarter 2009
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1 NAI Qatar|P.O.Box:12625 |Doha -Qatar |+ 974 4316717, 4316743 |www.nai-qatar.com|Dr. Rajesh Krishna Nair
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QUARTERLY REAL ESTATE PROPERTY MARKET REPORT - 2009
Qatar real estate market continued to prove its stability and reliability in the third quarter of 2009. The asking
rates are more or less same and there is a promising movement in the residential sector. There are approximatel
140 residential buildings and around 50 commercial buildings in and around Doha under construction or close to
completion. It shows the strength of the property market of Qatar. The hopeful aspects in the market are the
developers are bring together with timely transfer of high quality, value-added projects, banks improved to
managing the risks associated with over exposure to the real estate sector and government efforts to overcome
the difficulties and all these created good fundamentals in the real estate market.
12.9014.02
15.99 15.83
21.7723.23
17.69 18.20
9.71 9.17 10.18 9.88
2.22 2.31 2.94 2.894.70 4.67 5.26 5.52
10.44 10.70 11.33 11.44
Q3 2008 Q4 2008 Q1 2009 Q2 2009
Credit facilities by sectors (in %)real estate Govt. Sector General Trade
Industry Contractors Service sectors
Market Overview
3rdQARTERJulyAugustSeptember
Figure1From third quarter of 2008 to second
quarter of 2009, the real estate sector
has got the highest credit facilities
after government sector (figure1).
This shows the positive attitude o
banks towards real estate sector and
the vibrant real estate market in Qatar
1.85
5.57 5.60 5.24
2.87
Q1 Q2 Q3 Q4 Q1
2008 2009
GDP changeGDP change The significance of construction sector is still
growing. The contribution of this sector to GDP is
continuously increasing. But it is important to note
that the contribution is increasing at a decreasingrate. This means that, the construction process are
going at a very slow pace due to the short-term low
demand in the real estate sector (figure 2)
Figure 2
Data Source: QCB
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2 NAI Qatar|P.O.Box:12625 |Doha -Qatar |+ 974 4316717, 4316743 |www.nai-qatar.com|Dr. Rajesh Krishna Nair
In the third quarter of 2009, there was a promising growth in the demand for residential apartment units/flats. The
average asking rate for apartment units in most of the residential areas in Doha were increased as compared it
with second quarter. Areas like Al Sadd, West bay, Mumtaza,Mansoura, Bin Muhmoud, Um Gualina, Airport, Ein
Khalid etc, the average asking rate increased substantially (figure 3 & 4). Whereas areas like, Madinat Khalifa, Bin
Omaran, Najma, Salatha, Musheireb etc, the asking rates were decreased considerably. It is found that the
middle and lower income group of expatriates is largely located in these areas and perhaps this may be the
reason for fall of asking rate in these areas.
There was a mixed response for the demand for villa units in this quarter. Abu Hamour, Al Sadd and Airport Area
the average asking rate decreased considerably and other locations there was a positive rate of growth of
demand (figure5)
-20.00
-10.00
0.00
10.0020.00
30.00
40.00
3BHK
2 BHK
1 BHK
-20.00
-10.00
0.00
10.00
20.00
30.00
3 BHK
2 BHK
1 BHK
-40.00
-20.00
0.00
20.00
40.00
60.00
FF
UF
DOHATRENDS: RESIDENTIAL 2009
Figure 3Apartments F/F
Figure 4Apartments U/F
VillaFigure 5
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DOHATRENDS: RESIDENTIAL
The average asking rate for 3 bedrooms fully furnished apartment rose by 7.37 percentages during the third
quarter. Whereas the average asking rate for 2 bedrooms fully furnished apartments have fallen by (-) 1.31
percent. The rate for single bedroom fully furnished apartment rose by 7.52 percent. When we consider the
unfurnished apartment units, the average asking rate for 3 bedrooms apartments rose by 11.55 percent, whereas
the 2 bedrooms apartment rate have fallen by (-) 0.53 percent. The average asking rate for single bedroom
apartment has gained by 3.09 percent (figure 6). It is observed that the 2 bedroom apartments demand was
most deteriorated in the year 2009.
3 BHK 2 BHK 1 BHK villa
FF 7.37 -1.31 7.52 -0.37
UF 11.55 -0.53 3.09 -1.71
-4-202468
1012
14
RAT
Rate of Growth (Residential) There was a marginal fall in demand for villaunits. The average asking rate for both furnished
and unfurnished villa units have fallen in the third
quarter. The rates of growth of furnished villa
units were (-) 0.37 percent, whereas it was (-)
1.71 percent for unfurnished villa units.
9860 1007010587
8470 8385 8359
6065 6615 6521
16385 16694 16325
July August Sept.
F/F3 BHK 2 BHK 1 BHK VILLA
8335 82359298
6985 7100 6948
5315 5565 5479
14660 14195 14410
July August Sept.
U/F3 BHK 2 BHK 1 BHK VILLA
Average Monthly Asking Rates
Figure 7 Figure 8
Figure 6
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In the office segment, the average as
segment, the rate has fallen by (-) 4.23
ring roads are very attractive locations
respectively (figure 9). Whereas, the h
Mumtaza and Musheirib. The rates w
While most of the other areas, the aver
12.24
-28.19
-5.03
0.005.26
0.00
-6.
% change of rate (A grade office)Rent 'A' Grad
-1.57
-22.22
0.00
-12.00
10.532.83
-3
% cahnge of rate (B g
Rent 'B' Grad
The demand for B grade office units
most of the locations except Salwa ro
& jadeed (figure10). This is because
office units at a lower rate in all favorite
DOHA
Qatar |+ 974 4316717, 4316743 |www.nai-qatar.com|Dr. Rajesh Krishna Nair
ing rates were continued to fall in the third qu
percent and for B grade office segment, it fell
and the demand for A grade offices rose by
ighest fall in rate is marked in Corniche/Old S
re fell by (-) 28.19, (-) 6.03 and (-) 5.03 perce
ge asking rate per square meter was kept const
3-1.87
0.00 0.00
13.13
0.00
% change of rate (A grade office)office
.36
44.51
-14.29
15.56 8.33
-3.70
rade office)
office
Figure 10
TRENDS: O
C Ring
cornic
mus
R
B ring
ra
j
al
mu
salw
west bay/
airport road
Al
Industria
Bin
Rent/SQM/SeptemberB
were also fell considerably in
d,Airport, D ring road, Alsadd
f the availability of A grade
locations.
Figure 9
Dr. Rajesh Krishna Nair
arter. For A grade office
y (-) 4.17 percent. C & D
2.24 and 13.13 percen
latha region followed by
nt respectively (figure 9)
ant.
FICE
220
135
151
195
200
152
152
200
203
148
210
228
202
202.5
175
180
197
125
105
120
128
84
95
110
105
127
70
125
150
130
130
95
120
100
road
e/old
heirib
ajma
yyan
road
mada
deed
saad
taza
road
dafna
/area
ring
waab
l area
mran
Rent/SQM/Septembergrade A grade
Figure 11
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DOHARetail
The retail sector has very promising future. Notwithstanding the precariousness in the market, the retail sector
showed its potency. The average rate of growth of retail sector in the third quarter was 21.34 percent (figure12).
The promising nature of retails segment is mainly attributes to the fall of inflation and increased consumer
expenditure.
.
TRENDS: COMMERCIAL
-6.67 -7.17
21.24
-11.29
24.53
10.78
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
land ( commercial) land (Residential)
Retail Store
W. House Labor Accommodation
LandDuring the third quarter, there was a marginal
fall in the demand for land. The average selling
price for both commercial and residential land
fell considerably by (-) 6.67 and (-) 7.17
percent respectively (figure12). The low
demand may be due to the lack of complete
confidence from investors side.
% age changes: commercial Figure12
Stores/W. HousesThe average asking rate for stores fell by (-) 11.29 percent in the third quarter of 2009 and a number of stores are
vacant in the industrial area and other locations in and outside Doha. Whereas there is a good demand for
warehouses in Qatar and the average asking rate was increased by 24.53 percent in the third quarter (figure 12).
Labor Accommodation There is a very good demand for labor accommodation. The average rate of growth of a unit rose by 10.78
percent in the last quarter. This indicates the influx of labors and new projects. The average asking rate prevails in
Doha for a labor accommodation unit was QR1730/month or QR 97 per SQM
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DOHAResidentialBased on the past performance of the
is expected that there will be an upwa
rate of growth of rental rates for reside
in Doha. Whereas, for villa units, ther
percentages for the last quarter of 200
-3.00
-2.50
-2.00
-1.50
-1.00
-0.50
0.00
oct. nov.
Office - Growth rate
Retail, Store & W . HousesIt is expected that there is a good rat
commercial real estate market in th
2009. The asking rate for Retail, Stor
will increase from 10 to 30 percent in
Qatar |+ 974 4316717, 4316743 |www.nai-qatar.com|Dr. Rajesh Krishna Nair
What Future H
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
october nov
3 BHK 2 BHK
eal estate market, it
rd movement in the
tial apartment units
will be a fall of 2
.
dec.
Growth rate
OfficesThe third quarter of 2009
in the average asking rat
office spaces in Doha. It i
fall of 2 to 3 percent in t
The fall in rental rate do
demand for office spaces
numbers of office buildin
and around Doha with a
boom.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
october nov
store W.h
of growth in the
e last quarter of
and Warehouse
the last quarter.
Dr. Rajesh Krishna Nair
lds?
mber december
1 BHK Villa
showed a continued fall
e per square meter for
s expected to a further
e last quarter of 2009.
s not imply the fall in
. This is because large
s are mushrooming in
anticipated economic
ember december
ouse Retail
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