The time is right to invest in Qatar Real Estate - here are 12 reasons why Qatar is one of the best places in the world to invest right now.
- Great Economic Fundaments
- Controlled Supply & Construction Schedules
- Investments in Qatar will Appreciate
- Undersupply of Units
- Population Growth Fuels Growth in Demand
- 20-40% Cheaper Prices than Dubai
- Quick Finance available to Non-Residents
- Easy Process of Buying & Selling
- A Real 'Pearl'
- Better Regulated Speculation
- Superior Units
- Orange is Ahead of other Agencies
Contact us about Qatar HERE
1. Great Economic Fundaments
The Fundamentals of the Qatari Economy are not dependent on Real Estate and are unaffected by the Global Credit Crisis.
Benefit: Qatar it is fuelled by Trillions of Dollars Liquid NaturalGas and wealthy local banks and an immediate shortage of places for its nationals and expatriates to live.
Justification: Qatar is rich. It pumps nearly 1million BPD of oil and has 5% of the global gas reserves.
According to the World Economic Forum (WEF) it is the ‘most open Arab Economy’ and is very welcoming foreign investment.
Qataris are the richest people on the planet with $133billion GDP (which is $70,000 per capita) and it’s growing at 23% (faster than Dubai and Abu Dhabi put together).
2. Controlled Supply & Construction Schedules
Supply and construction schedules are controlled by the Government – so no ‘delays’, no risk.
Benefit: Currently the main development where Residential units are for sale, is The Pearl, with units for sale in Porto Arabia, Viva Bahria and Venice Beach.
Justification: There are serious questions being asked about Supply in several markets around the world where government developers control less than even 50% of the supply. In Qatar, the government directly controls ALL the supply.
3. Investments in Qatar will Appreciate
Investments in Qatar are unconnected to other Middle Eastern Real Estate markets.
Benefit: Whatever happens in Dubai, Abu Dhabi or the world markets, investments in Qatari real estate are fundamentally un-connected ; their banks don’t need money to offer mortgages, or need to sell properties in order to finance construction.
Justification: In Qatar, the market is almost entirely oil and gas related (only 6% is construction), and real estate development is a necessity in order for it to house its growing population.
4. Undersupply of Units
Most analysts agree that there is an undersupply of about 100,000 units over the next 3-5 years.
Benefit: In Qatar the story is clear and unambiguous, there is NO WAY that currently planned supply can match the demand until at least 2015. This means that sentiment is very, very positive and buoyant.
Justification: The government is destroying 30,000 housing units of the 130,000 units that exist currently. They think they need over 120,000 new units.
Actual new residential supply will be between 10,000 and 16,000 units in the next two years.
So they are short 90-100,000 units.
5. Population Growth Fuels Growth in Demand
Population growth, changing family makeup and the destruction of old residential units is fuelling a massive growth in demand for apartments and villas.
We estimate that residential property will continue to appreciate at between 20 and 30% pa in Qatar for at least 2 to 3 years.
Benefit: With the underlying price appreciation, access to 20/80 payment plans and finance. Coupled with the higher rental returns, we confidently expect our investors to return triple digit (over 100% ROI) returns for the next few years.
Rental rates have quadrupled in 4 years to $4,500 per month for a 2 bedroom apartment, leading to some of the highest rental returns anywhere in the GCC.
Justification: Population growth is estimated at 30-40,000 people per year in Doha for the next 5 years (7% per annum). Population growth is accelerating.
Qatar is investing over $70 billion in Oil and Gas projects, in 40 large-scale projects, which require an estimated 60-80,000 Senior Engineers and Support staff. Shell alone is bringing in 25,000 staff in total.
Qataris live 8 people to one household (traditionally as large families under one roof) but the younger generation (70% are under 30 years old) want to move out and are wealthy enough to afford it. Merrill Lynch think that household size will half – doubling the number of residences required- for the current population.
6. 20-40% Cheaper Prices than Dubai
ALERT: Prices are about 20-40% cheaper than Dubai apartment equivalents for units which will be ready in 6 months. High returns with very low risk. Also providing several exit strategies.
Benefit: Investors can buy luxury apartments in Porto Arabia on the Pearl for less than AED 1,700/sq.ft for units which will be ready in less than 6 months.
The majority of the price appreciation will occur from now to completion, and in the 1 year after completion. So as an investor, the are potentially great returns during this period – anything from between 50% and 100% appreciation in less than a year is being touted.
Justification: If the low price, high appreciation, low, low risk, diversification, high quality, great location and access to finance weren’t enough, Doha has some of the highest growth or rental returns which allows the investor multiple exit strategies.
7. Quick Finance available to Non-Residents
Finance is available to Non-Residents and is relatively quick to get (less than 2 weeks).
Benefit: It is possible to get a Qatari mortgage as an overseas resident easily and quickly.
Also, Bank underwriting means that many new launches are on 20/80 payment plans, which means great Returns On Investment are very realistic in the right project.
Justification: Qatar Commercial banks welcome foreign investors, albeit at a high price (1% arrangement/9.2%/1% redemption). 65%/35% mortgages are available through Commercial Bank.
8. Easy Process of Buying & Selling
The process of buying and selling Qatari property is as easy, or in fact easier than local and international real estate markets. Legal frameworks are in place. However there’s very little stock available to buyers - already driving up the prices.
Benefit: Expect that over the next 6 months to hear a lot about Qatar. Wise investors will get ahead of the crowd – and ride the inevitable rise in prices over the next 2 years.
As someone with stock, it will be very easy to sell.
Justification: On the flip side the Qatar real estate market is in it’s infancy which means:
(1) There’s very little awareness about what’s happening or what’s available in Qatar.
(2) For investors there’s a real shortage of stock (so if you have some, its very valuable).
9. A Real 'Pearl'
The Pearl Qatar is an awesome design and very desirable location. Porto Arabia is the main iconic residential hub and marina on this development, and Venice the idyllic residential area.
Benefit: Only 25 minutes from the airport, The Pearl is a development that is visibly attractive, ‘open’ with great vistas, a good mix of high, medium and low-rises, great water flow and beach access, a 1000 berth marina, pools, communal gardens.
Justification: With its ‘Bay’ design, all the buildings have sea views. With its interior 2.5 kilometre retail zone and free-zone alcohol freedom, its attractive to holidaymakers as well as residents - which widens the options open to an investor (buy/sell, rent long term, rent short term).
Because delivery of the Peal is being so closely managed, it means that nearly all the plots are being worked on, so that few projects can be delayed which would otherwise lower the quality of life for other residents.
10. Better Regulated Speculation
Speculation, while welcomed, is better regulated and controlled in Qatar, which means that end-users will not be priced out of the market by greedy first tier speculators.
Benefit: The system of transfer fees and the Master Developer’s right of first refusal have dampened the rampant profiteering and insider trading that has blighted some real estate booms in recent years. Thus leading to sustained capital appreciation and a real premium for completed, income generating units.
Justification: The Master developer reserves the right to buy back your property on many projects on the Pearl Qatar. Transfer fees (from Sub developers) are 5%, via the master developer is 2.5%.
11. Superior Units
The design, size of units, balconies, views, and finishes are ALL superior quality.
Benefit: We have been pleasantly surprised by the high standard and consistency of the building quality and finishes in the buildings on The Pearl. After some of the scare stories of rushed building schedules elsewhere in the world, Qatar is a breath of fresh air in that regard.
Justification: Rooms are 30-50% larger than standard apartments, they feel like ‘villas’ inside . Balconies are enormous, and are usable for entertaining. The standard of interior finished and amenities are very high.
12. Orange is Ahead of other Agencies
Orange is specialising in Qatar and investing heavily in our Qatari relationships. We are being especially rigorous in acquiring stock, training personnel and making real returns for our clients.
Benefit: At the moment, we are the only agency advertising on the internet which appear on Google search network when you type Qatar Real Estate. That means we can buy, manage and sell your investment at a profit – we are making sure we get to the right market at the right price.
Justification: We have some great stock. We’re opening a branch in Qatar. We have contacts with the finance providers. We can generate buyers for your properties for resale. We’ll be present at Cityscape.
