File picture used for reference only.
Investment plan of QR46bn for the current year will impact positively on the country’s construction and real estate industries. Doha will continue to experience strong residential demand for mid income housing as population growth continues, leading consulting group ValuStrat noted yesterday in its 2017 Qatar Market Outlook.
Major retail developments are expected to come online in the market in 2017. They include Doha Festival City, North Gate Mall and Al Hazm Mall. Doha’s retail stock is expected to expand by around 1.9million square meters over the next five years.
For the first quarter of 2017, pressure is expected on office rates due to oversupply and slow economic activity. Inflation is estimated to remain modest at around 2.0 percent-3.0 percent over the next three years. The World Bank has reassessed its oil price forecast for 2017, expecting the prices to average at $55 per barrel.
Depending on construction delays, the hotel sector supply pipeline until 2017 could include over 9,600 new hotel keys and 3,400 new hotel apartments.
ValuStrat’s Q4, 2016 review on the Infrastructure sector noted that the period witnessed the opening of New Hamad Port that became operational in December and it will be one of the world’s largest Greenfield port developments. Qatar world Cup in 2022 final stadium will transform into a Theatre District.
The fourth quarter witnessed strong growth in retails supply. Mall of Qatar was officially opened its doors to the public for its soft opening. Rental prices dropped by 8 percent during the period; and if rent-free period is taken into account, rental values have fallen more than 15 percent from 2015.
Prime rents for Grade A offices in prominent locations were also on a downward trend in Q4, which are currently at QR180-230/m2/month.
The thrid quarter witnessed a fall in demand for residential blocks and compounds.
Q2 witnessed a growth in office availability throughout West Bay due to the completion of new buildings and fall in demand. Qatar Rail announced the compeltion of tunneling on the Green Line of Doha Metro project. In September 2016, Qatar's population reached 2.55 million growing back to its previous highest levels in February 2016.
