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Real Estate Market Research
July 5, 2010: One of the world’s richest and most rapidly growing countries, Qatar is home to a dynamic commercial real estate sector that should be enjoying a boom. On one hand, it is easy to identify reasons why demand for all kinds of commercial real estate should grow as natural gas exports flourish and as the government encourages economic diversification. On the other, Qatar is small enough that it should be easy for policy makers to control the supply of new (and often prestigious) developments.
In practice, 2009 was something of an annus horriblis for protagonists across the sector. Rental rates dropped 10% in the office and retail sub-sectors of Al-Khor, but 25-30% in the city’s industrial sub-sector and in all three sub-sectors of Al-Wakra and Doha. In spite of the government intervention in the economy, the main effect of the global financial crisis and the subsequent problems of nearby Dubai was to expose a massive – if temporary – oversupply of commercial real estate.
Qatar’s landlords did not cope with the dislocation equally well with the dislocations of 2009. In Doha, the retail sub-sector of Al-Khor and the office and retail sub-sectors of Al-Wakra, rental yields generally fell (or moved sideways) as landlords held on to their investments. By contrast, yields soared in the office sub-sector of Al-Khor and the industrial sub-sectors of Al-Khor and Al-Wakra. The implication is that prices and capital values slumped as particular protagonists were forced to sell at very low prices.
We believe that the optimism of our in-country sources will be vindicated. Rental rates should firm. The massive new developments should be absorbed. In the wake of the challenges of 2009, rental yields in the Qatar market vary enormously from sub-sector to sub-sector. Over the coming years, we expect that they will converge.
Interviews with our in-country sources were conducted in March 2010.
Key Features Of This Report
This is the latest edition of a new series of industry reports published by BMI which seeks to identify the key dynamics of the real estate sectors of 44 countries around the world, some of which are developed and some of which are, in every sense, emerging markets. Once again, the questions that we seek to answer for each country remain as follows: what are the main issues that will matter to actors in and around real estate development in the country concerned, both over the long and the short term? What are the main constraints that they face? What are the key insights that one garners when one compares the real estate sector of the country concerned with its peers in other countries?
This quarter, we have introduced a very substantial new improvement to the reports. We have incorporated data and qualitative observations that have been provided to us by commercial real estate agents operating in each of the countries that we survey. As a result, we have gained a much clearer picture of the balance between demand and supply in each of three main sub-sectors – office, retail and industrial. We have also introduced a new approach to the forecasting of rental yields, which is discussed in the methodology sector of this report.
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI’s country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world’s top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
SOURCE Fast Market Research
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Qatar Real Estate Report Q3 2010 is now available at Fast Market Research is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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