At least seven hotels and five malls are due to open in 2019. This year is also expected to deliver an estimated 10,000 residential units.
Of the total residential units projected to be delivered in 2019, 75 percent of the supply is expected to launch in Lusail and The Pearl -Qatar which might influence market rent in the area once projects are handed over.
Rents in Central areas of Doha are expected to stabilize, leading consulting and advisory firm ValuStrat Qatar noted in its 2019 Outlook.
The upcoming hotels are Al Messila Resort, Dusit Doha, Mandarin Hotel, Zulal Wellness Resort, M Gallery Boutique Hotel, Panaroma Residences and Suites; and Plaza Rayhaan. Mid-market hotel segment might continue to show improvement in occupancy in 2019.
Place Vendome, Boulevard Mall, Doha Mall, La Plage Mall and Marina Mall are among other malls expected to open in 2019.
According to ValuStrat, Lusail is expected to receive 80 percent of the projected office supply which could impose downward pressure on asking rental rates in order to maintain occupancy. Capital values of villas outside Doha may experience downward pressure as a result of increasing competitiveness of villas in prime locations. On the industrial sector, the report noted that Qatar’s two free zones — Umm Al Houl and Ras Bufantas are expected to start receiving foreign and local investors.
In a separate report on GCC real estate, KAMCO Research said Qatar real estate equities remained the lone gainer in the GCC in 2018, and gained by 11 percent YTD in November 2018, as the broader market in Qatar rallied in 2018.
The Dubai real estate and Construction index was the main laggard on the GCC as it plunged by 32.2 percent YTD. The real estate index in Saudi Arabia, which comprises of real estate developers, declined by 30.5 percent YTD. Aggregate credit to the real estate sector disbursed by GCC banks at the end of third quarter of 2018 grew 1.1 percent on quarter-over-quarter to reach $195.4bn.
Qatari banks were the largest contributors in Q3, 18, as $1.39bn of net incremental credit was disbursed quarter-over-quarter.
Citing Qatar’s official data, the KAMCO analysts noted the country’s real estate transactions for the first nine months of 2018 were up 14.4 percent year-on-year to 3,148 transactions.
Qatar’s real GDP is projected to grow by 3.1 percent. Inflation rate is estimated to remain modest and current account surplus is expected to reach QR4.3bn.
ILQ
30/12/2018
