Qatar’s expatriate population is expected to increase in the second half of 2021 after the government relaxes the social mobility restrictions, resulting in a pick-up of real estate demand, according to the middle east’s leading researcher ValuStrat’s report.
As per ValuStrat, the increasing ownership by foreigners along with competitive listings for residential sales might slow down the rate of decline in capital values potentially falling by the end of the year. Further, a rise in real estate demand could lead to the stabilization of rents by the end of 2021, the report added.
The estimations made by the research firm show that the residential supply for 2021 will reach up to 8,200 units and nearly 80 percent of this will be concentrated on Qatar’s leading residential areas Lusail, The Pearl and West Bay.
In an effort to capitalize the growing trend of rising online transactions, the Government of Qatar is pushing retailers to switch to eCommerce platforms. The estimated mall supply for 2021 stood at 209,000 sqm gross leasable area (GLA). Rentals in malls and shopping centers will continue to soften due to surging online trade, however, demand is predicted to increase during the second half of 2021, which may bring mild declines in rents by the end of this year.
According to ValuStrat, an estimated 880,000 sqm GLA of office space is predicted to be added during 2021. No major fiscal consolidations at private and government levels are expected to occur during this year. Despite the influx of supply, the projected pick-up in market sentiment and demand might contribute towards a slower pace in the decline of office rents.
In the hotel sector, Qatar is projected to receive 7,000 rooms (6,250 keys and 750 apartments) in 2021, the report said. The lifting of quarantine measures expected in the second half of 2021 might provide a boost to the tourism sector. The first half of this year will witness mandatory hotel quarantine and domestic tourism supporting the hospitality industry.
The Government of Qatar unveiled a budget of $53.4 billion for the fiscal year 2021 with a projected deficit of $9.5 billion (based on the assumed oil price of $40 per barrel).
The budget is expected to support upcoming as well as ongoing development projects in various sectors and those related to World Cup 2022, education and healthcare and infrastructure development in the economic, industrial and logistics zones.
