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Mazaya Monthly Real Estate Report -
Week 2 - May 2016
Qatar
With the continuing rise of land prices
in Qatar and continuing negative
practices by real estate brokers in the
country, it seems the situation remains
static at the present time with violations
of applicable laws neither declining
nor increasing. It is worth mentioning
that one of the key issues lies in real
estate brokers intentionally dividing
and subleasing villas to generate
substantially higher revenues. While
there are applicable laws in this respect,
effective regulation of this phenomenon
has been difficult and violations are
spread across the majority of housing
areas in the country. It is noticeable
that the substantial rise in rents has
fuelled this phenomenon, with rents
for rooms in divided villas being
deemed more reasonable for renters,
compared to the prevailing prices
of whole units. Al Mazaya’s Report
further reveals that the country’s
increasing population and limited
construction of housing units – serving
low-income segments – continues to
fuel this issue. It is the opinion of Al
Mazaya that the enactment of further
lease-relevant laws and legislation
is necessary in order to contribute
to controlling this phenomenon.
Under the application of the new laws,
no individual or real estate firm will
be able to practice the profession
without obtaining a license from the
official regulatory bodies. In addition,
real estate brokerage firms will be
electronically linked to the concerned
ministry in order to monitor the
firm's activity, as well as serving as
an observable indicator on demand
and supply movements, across
the Sultanate’s real estate market.
Oman
In the Sultanate of Oman, Al Mazaya’s
Report addresses the trends and
indicators of urban growth in the country,
with government bodies moving to
impose further controls and pass a series
of laws which regulate the operation of
real estate brokerage firms. Much like
the measures being introduced in other
GCC countries, these procedures aim
to limit and regulate the functioning of
individual real estate brokers and real
estate firms so as to protect the real
estate market from illegal practices.