The Gulf state’s real estate market for Q1 of 2023 was found to show a period of subtle market correction.
Qatar’s real estate trading volume hit QAR 453,314,728 (around $125 million) between 28 May and 1 June alone, the Gulf state’s news agency (QNA) reported on Monday.
Citing the Real Estate Registration Department at the Ministry of Justice, the report said the figure represented real estate trading in sales contracts registered at the governmental entity during the specified week.
Between 21 and 25 May alone, real estate sales hit QR 266,634,542 ($73.2 million).
The properties included vacant lands, residences, residential buildings, residential complexes, and commercial buildings.
The areas covered include Al Rayyan, Al Daayen, Al Wakra, Doha, Al Shamal, Umm Salal, Al Khor and Al Thakhira, QNA added.
Earlier, the Chief of Investments at Qatari Diar Real Estate Investment Company, Ahmad Mohammad Tayeb, said that while the real estate industry is not thriving as anticipated, a comeback can be expected.
“The real estate industry isn’t doing so well… but in a few years, it can come back better. If we look at the industry, we are not far from the world recession, but we have done better because of the World Cup,” Tayeb said at the first Qatar Real Estate Forum.
Instead, panelists at the event, including leading business figures in Qatar, said the Gulf state’s real estate industry is witnessing what has been described as a market correction phase.
Speaking at a panel discussing the country’s post-World Cup real estate sector, Nasser Al Ansari, Chairman and CEO of Just Real Estate, pointed to a market correction in all rental sectors of the property market in the country.
“It’s a correction stage, more than a recession. The responsibility is on the private sector,” Al Ansari stated in the forum.
The chairman pinned the blame towards dependency on the government by the private sector, saying that investments need to be offered outside the country.
“We’re weak in promoting real estate; the private sector should not depend on the government. We need to be outside the country,” Al Ansari said.
Last week, renowned real estate advisory firm ValueStrat said Qatar’s industry has shown resilience amid a slight market correction.
The Gulf state’s real estate market for Q1 of 2023 was found to show a period of subtle market correction, with the Value Price Index (VPI) registering a marginal 0.2% decrease compared to the previous quarter, the report explained.
Such a correction is not a cause for alarm as it is often a healthy sign, allowing the market to stabilise and provide more sustainable growth opportunities.
The population growth, crossing three million in March 2023, and the government’s hefty spending plan of QAR 199 billion for 2023 – a substantial part of which is allocated to infrastructure projects – all signal a market that is ripe for investment and has room for growth.