Qatar’s real estate sector makes major recovery

 09 Nov 2017 - 0:00

Mohammad Shoeb The Peninsula

Qatar’s real estate sector witnessed a remarkable recovery in October with the combined value of monthly real estate transactions increased to QR5bn, up by 78.6 percent compared to QR2.8bn recorded in the corresponding month last year, according to Ezdan Holding Group’s monthly report.
During the month of October, 433 deals were executed, including 221 for ready-to-move properties, accounting for 51 percent of the total number of transactions, and 212 transactions were for the sale of land plots, which accounted for 49 percent of the total number of transactions, said the Ezdan report citing official data from the Department of Real Estate Registration at the Ministry of Justice.
The recovery in the real estate market was attributed to the return of the exceptional deals (valued more than QR100m), especially for the sale and purchase of prefabricated buildings sector, in addition to the noticeable increase in the number of land plot transactions.
The Ezdan report noted that the real estate sector is expected to continue its growth in the coming period, especially with the current economic expansion of the country and the increasing pace of projects related to the FIFA World Cup in 2022. The real estate sector is expected to grow by 30 percent by the end of the year.
In the first week of October (1-5) , 2017, the value of real estate transactions rose by 236 percent, with sales amounting to QR803.4m compared to QR238.9m in the previous week, supported by two exceptional deals worth QR475m.
During the week, 135 transactions were executed against 70 in the previous week, registering a growth of 93 percent. The prefabricated buildings accounted for 80 percent of the real estate transactions through 43 transactions totaling QR643m, which included 34 housing units, 3 residential buildings, while land plots acquired 20 percent of the total value of QR160.4m from 92 transactions.
The second week of October (8 to 12), witnessed a decline in the value of real estate transactions by 53 percent, with the combined value of deals reaching at QR378.3m compared to QR803.4m in the previous week, affected by the absence of exceptions transactions.
During the week, 102 transactions were executed, compared to 135 in the previous week, a decrease of 24 percent. The prefabricated buildings acquired 70.4 percent of the real estate transactions through 52 transactions with a total value of about QR266.5m, which included 43 housing units, 3 residential buildings, while land plots held 29.6 percent of the total value of QR111.8m from the execution of 50 transactions.
The third week of October (15-19) saw a record 394 percent rise in the value of real estate transactions, with the total value of sales reaching at about QR1.86bn compared to QR378.3m in the previous week.