House - $3,549,000
House - $7,489,350
House - $3,966,287
House - $5,864,532
Qatar: Overview
Last Updated:
Feb 06, 2008
The Qatari property market has witnessed an unprecedented slump this past year. Property demand from expatriates and wealthy holidaymakers has dropped sharply, and house prices and rents have fallen by double-digit figures.
In the absence of official house price statistics, it is very difficult to gauge how much house prices have actually dropped. Jones Lang LaSalle estimates that house prices in Qatar have fallen by about 30% in 2009 from a year earlier. Other local realtors claim that house prices plunged by as much as 40% in 2009, while rents crashed by 25% to 30%.
Completions of major developments in 2009 brought a surge in high-end residential property supply just as a sharp contraction in demand took place, resulting in crashing prices.
Nevertheless, prices are expected to fall another 15% in 2010, as around 10,000 new homes are completed during the year, according to Keith Edwards of The First Investor Asset Management, an investment bank.
"We expect 2010 to be the bottom of the market in terms of prices but we don't necessarily see any upturn in 2011, because of the supply coming in," Edwards said.
Following Dubai, Qatar started developing and opening their real estate sector to foreign buyers after the turn of the millennium. A property boom followed driven by rapid economic growth.
The surge in demand for housing units was fuelled by the higher purchasing power of Qataris and by an influx of expatriates. Property prices to climb from mid-2000s to early-2008.
In the absence of official house price statistics, it is very difficult to gauge how much house prices have actually dropped. Jones Lang LaSalle estimates that house prices in Qatar have fallen by about 30% in 2009 from a year earlier. Other local realtors claim that house prices plunged by as much as 40% in 2009, while rents crashed by 25% to 30%.
Completions of major developments in 2009 brought a surge in high-end residential property supply just as a sharp contraction in demand took place, resulting in crashing prices.
Nevertheless, prices are expected to fall another 15% in 2010, as around 10,000 new homes are completed during the year, according to Keith Edwards of The First Investor Asset Management, an investment bank.
"We expect 2010 to be the bottom of the market in terms of prices but we don't necessarily see any upturn in 2011, because of the supply coming in," Edwards said.
Following Dubai, Qatar started developing and opening their real estate sector to foreign buyers after the turn of the millennium. A property boom followed driven by rapid economic growth.
The surge in demand for housing units was fuelled by the higher purchasing power of Qataris and by an influx of expatriates. Property prices to climb from mid-2000s to early-2008.
Read Price History »
RENTAL YIELDS
Last Updated: Jan 01, 1970
Yields in Qatar are excellent at around 12%
Qatar rentals have tripled in the past six years. Yields are now excellent. “A landlord who has just bought a new five bedroom house for QAR1.8 million (US$494,105), a good quality house, is renting it out at QAR18,000 (US$4,941) per month,” says Parry. This rental translates into a annual gross yield of 12%.
Rentals of QAR25,000 – QAR40,000 (US$6,863- US$10,980) are more usual houses in West Bay, an upscale residential district. Then there is West Bay Lagoon, which is even more expensive.
“There is a very limited supply of condominiums at the moment, only 2-3 buildings,” says Parry. “All that will change when the Peal of the Gulf comes on stream in the Q1 of 2008.”
Rentals of QAR25,000 – QAR40,000 (US$6,863- US$10,980) are more usual houses in West Bay, an upscale residential district. Then there is West Bay Lagoon, which is even more expensive.
“There is a very limited supply of condominiums at the moment, only 2-3 buildings,” says Parry. “All that will change when the Peal of the Gulf comes on stream in the Q1 of 2008.”
TAXES AND COSTS
Last Updated: Nov 27, 2008
Rental Income: Rental income is considered a business income and taxed at progressive rates, from 10% to 35%.Capital Gains: Capital gains derived from business activities are taxed at the standard income tax rates. Otherwise, capital gains are not taxable.
Inheritance: There is no inheritance tax in Qatar.
Residents: Resident individuals are not subject to tax on their income and capital gains, provided that these are not derived from business activities. Business income and capital gains are taxed at progressive rates, from 10% to 35%.
BUYING GUIDE
Last Updated: Aug 01, 2006
Research in this field is ongoing.
LANDLORD AND TENANT
Last Updated: Jan 01, 1970
The laws are mildly pro-tenant
b>Rent: Under Law No. 4 of 2006 in effect from February 2006 to February 2008, annual rent increase is limited to 10%. The implementation of the rent cap is widely expected to be extended.
Tenant Security: There are in theory only three reasons the landlord can give to force his tenant to leave: non-payment of rent, moving in of close family, and to demolish the property. However, there are reports that this law is often not observed, and that landlords are using fictitious demolition plans to squeeze their tenants out.
Tenant Security: There are in theory only three reasons the landlord can give to force his tenant to leave: non-payment of rent, moving in of close family, and to demolish the property. However, there are reports that this law is often not observed, and that landlords are using fictitious demolition plans to squeeze their tenants out.
ECONOMIC GROWTH
Last Updated: Feb 06, 2008
Spectacular economic growth
Qatar’s economic performance remains strong, despite the global crisis. The country is the world's biggest exporter of liquefied natural gas (LNG). It has also more than 15% of the world's proven gas reserves. Qatar has the third highest GDP per capita in the world, at QAR286,666 (US$78,754). Its wealth has grown at breakneck speed during the past 15 years, particularly since the Iraq War.The country’s economy grew by an average of 16% from 2006 to 2008. Then in 2009, real GDP growth rate slowed to 11%. In 2010, the economy is projected to grow by 16%. However, the positive outlook for the economy was not reflected into the property market which remained depressed due to the oversupply of high-end properties.
The robust economy is the main driver of the property boom in Qatar in the past few years. The surge in demand for housing units fuelled by the influx of expats and higher purchasing power of Qataris has triggered property prices to climb in the past years. However, starting mid-2008, house prices and rents dropped sharply due to the global crisis. In 2009, the country is expected to book deflation of about 3.5%. Qatar experienced escalating prices in the past years, with an average annual inflation rate of 13.5% from 2006 to 2008. In 2010, inflation rate is projected at 4%.
Unemployment was 0.3% in 2009. The unemployment rate among the economically active population was 0.3% in 2009, but higher at 2.3%
