Qatar’s leading global real estate company, DTZ/Cushman & Wakefield, released its H1 2019 Qatar real estate market report this week.
Among many findings, DTZ’s research team identified an increase in investment opportunities as a result of the implementation of Law no. 16 of 2018, which was introduced in March 2019 and expanded the number of freehold zones from three to ten.
The zones will encourage non-Qatari real estate investment in Lusail, West Bay and Onaiza as foreign purchasers take advantage of the many premium products coming to the market.
DTZ has seen an increase in leasing enquiries and activity in the office sector in Q2 2019, largely from companies that operate under the Qatar Financial Centre. During the first half of 2019, DTZ recorded over 55,000 sqm of office space enquiries.
Business sentiment indices show confidence in the Qatar economy to be at a 4 -year high, which will translate into an increased demand for quality office space – although the traditional office accommodation is having to compete with managed workspace.
Residential rents have largely stabilised following three years of decline. The increasing affordability of apartments in Qatar has seen an increase in demand for apartments in prime locations such as The Pearl-Qatar and West Bay, while residential towers in Lusail have also recently come to the market.
Occupancy rates in hotels have increased over the first half of the year compared with the corresponding period in 2018.
According to official data, the overall occupancy rate in May 2019 was 66 percent, which is 6 percent higher than the 2017 figure, despite the overall increase in the supply of room numbers.
Commenting on the findings of DTZ’s latest report, Edd Brookes, General Manager of DTZ/Cushman & Wakefield Qatar, stated, “Our findings in H1 demonstrate the robustness of the Qatar real estate market which continues to show stability when compared regionally. The very positive business sentiment is translating into an increase in office space enquiries which in turn drives residential demand and retail markets.
“The efforts by Qatar Tourism Authority have significantly boosted visitor numbers year-on- year and rental levels have now reached an affordable level which we believe will stabilise from Q1 2020.”
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