The huge public expenditure on major infrastructure projects and other key sectors such as education and health, as part of the 2020 national budget will support the robust growth of the Qatari economy, including the real estate sector, noted a report by Ezdan Real Estate Company.
The monthly report issued by Market Research and Reports Department of Ezdan Real Estate Company depicted the positive indicators made in recently issued reports by international organizations, such as the World Bank, regarding the growth projection on Qatari economy.
They projected a growth rate of 3 percent for the Qatari economy for 2020, which indicates an accompanying growth in the real estate sector, being one of the most vital sectors of the local economy. Such indicators are supported by the 2020 annual budget with a projected QR211bn in revenue and QR210.5bn expenditure, which is 1.9 percent higher compared to 2019.
The report also stressed the importance of laws regulating and promoting Qatar’s tourism sector. As a result of concerted efforts on the part of the National Tourism Council and other entities, there is an influx of tourists estimated at around millions of visitors each year. This, in turn, will further boost the real estate sector across all segments including residential, hotel or commercial properties.
The monthly report also noted that QR90bn expenditure on major projects (accounting for nearly 43 percent of total expenses) under the national budget 2020 will strongly support for the real east sector growth.
It also highlighted that the continued commitment by the State to provide the needful budgetary allocations to complete major projects in key sectors, such as health, education, transport and projects related to the 2020 FIFA WORLD CUP, will also work as a significant driving force for the real estate sector’s growth.
A boost in the real estate sector is also expected as a result of the plan to tender new projects throughout 2020 in various sectors for the total cost of QR11.5bn. The Public Works Authority (Ashghal) is assigned the larger segment of the new projects with a total cost of QR8.5bn. Such projects include comprehensive infrastructure projects across the country, which include local roads, sewage, road landscaping, rainwater drainage system and operation and maintenance projects.
One of the most significant public facilities infrastructure projects is that of extending highways projects. These include Sabah Al Ahmad Corridor, water and electricity networks extensions, sewage networks extensions throughout the state and commencing of the ambitious multi-billion dollar Sharq Crossing project, which is expected to be completed within 4 years.
Ezdan Real Estate researchers found that the surge in the number of visitors in Qatar effectively increased the demand for residential or hotel units; which, in turn, positively affects the real estate sector. The total number of visitors in Qatar during the first 10 months of this year reached 1.66 million, registering an annual growth of 13 percent compared to 2018 for the same period in 2018.
Ezdan’s report said that the operation of Doha Metro, being an important mode of public transportation, will affect all other sectors of the economy, including the real estate sector. It stated that the announcement to operate all metro lines will enhance horizontal urban development and revitalize construction activities throughout the State.
Ezdan report stated that such a step will boost the real estate market in metro-adjacent areas and projected increase in demand for units near metro as it is widely used by individuals as a basic transportation means between all regions.
The combined value of real estate deals in December 2019 reached QR1.2bn from 234 transactions, according to the Real Estate Registration Department at the Ministry of Justice.
The Peninsula
05/01/2020
