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Al-Mazaya Report states the urban large-
scale development that the Qatari economy
witnesses will enhance production and
service activities therefore, naturally
increasing prices across all sectors; mainly
land and real-estates being the core of
all development trends. Specifically, we
refer here to the increase in ratios and the
terms and range of impacts, as statistics
reveal 300% increase on lease rates at
some selected locations, while land prices
increased by 30% during Q1 the this year,
with real-estate transactions amounting to
QR 20 billion during the same term. This
reflects huge liquidity available to the Qatari
real-estate market. Still, such statistics are
widely damaging as they are negatively
impacting the construction, operation costs
and the price to be paid by end users.
Al-Mazaya report recommends rapid and
direct constraints to be imposed on the
overall real-estate activities taking place
at the Qatari real-estate market in order
to avoid a real-estate bubble occurring, or
a false demand trend affecting residential
and commercial sectors. Amongst the
leading constrains to be imposed is the
management of liquidity traded in the real-
estate market and control of its relevant
sources as this is the significant factor
mostly deviating and distorting real-
estate mechanisms and demand/supply
forces. Regulatory resolutions will equally
contribute to alleviating the continuous
leaps in prices whether in term of allocating
more land to development purposes,
constructing
additional
subsidized
residencies, expanding the urban borders
or the inclusion of additional areas to
them. It will be equally worthy to explore
imposing various limits that may control
the upper margins of land and real-estate
as they may hike to from current positions
which is thought to harm the economic
activities rather than benefiting them.
As such, prioritizing the public economic
interest requires a scrutinized intervention
by related authorities affecting demand/
supply mechanisms and alleviating their
negative impacts. This approach may
not be seen as offensive to the open
market economic rules as the goal is
to minimize the negative ramifications
and maximize the benefits sought
from the overall construction rebound.
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Mazaya Monthly Real Estate Report -
Week 3 - APRIL 2015