Rents in Qatar projected to stabilise in 2022: ValuStrat

Satyendra Pathak Doha Rents of residential units are projected to stabilise and even grow in some areas, leading international consulting firm ValuStrat ...

Satyendra Pathak Doha Rents of residential units are projected to stabilise and even grow in some areas, leading international consulting firm ValuStrat has said in a report released on Thursday.According to the report entitled ‘Qatar Review 2021 – 2022 Outlook’, Qatar is expected to add 13,500 residential units during 2022.“Subject to a temporary increase in demand arising from growth in expatriate population fuelled by hosting FIFA World Cup in 2022 and Eskan leases, rents of residential units are projected to stabilise and even grow in some areas,” the report said.“Growing ownership by foreigners coupled with positive expectations associated with hosting a major global event could potentially bottom out capital values at the beginning of 2022 and may lead to appreciation in some areas by end of the year,” it said. “The rising declines in rents and capital values across all asset classes in Qatar during the start of the pandemic were reversed in 2021. By the third quarter of 2021, we observed signs of increasing residential rents in some areas due to a temporary boost in demand arising from hosting FIFA World Cup in 2022,” the report said.Moreover, the report said, “Increasing competitiveness of properties, the introduction of policies facilitating investment and normalisation of relations with GCC countries is further projected to facilitate a slowdown in the decline of rents and capital values and stabilisation during 2022.”The report said that the lifting of quarantine measures and social mobility restrictions related to the pandemic in Qatar might provide a further boost to tourism on all fronts like leisure, regional and cruise.A water park, beach club and 5-Star hotel in Qetaifan North project are all set to operate from the third quarter of 2022, it said adding that Winter Wonderland operated by International Marketing Group will be hosted on Al Maha Island near Lusail, over 200,000 sq m, starting from November 2022 for five years.More than 1.5 million fans are expected to attend FIFA World Cup 2022 and to welcome the visitors a number of luxury hotels are almost ready to open in 2022. According to the report, upcoming notable hospitality establishments include Rixos Doha Qetaifan, Fairmont & Raffles Lusail Hotel & Residences, Waldorf Astoria, Rosewood Residence Doha, Dream Doha, Century Marina Hotel, Al Baker Novotel and Sofitel, Hampton by Hilton Doha, The St.Regis Marsa Arabia Island and Plaza Doha.Occupancy and average daily rate (ADR) are projected to grow by 15-20 percent and 20-40 percent year-on-year (YoY) respectively during the months in which FIFA World Cup will be hosted, the report said.Upcoming shopping centres include Place Vendome Mall, Boulevard Mall, La Plage Mall, Doha Oasis and Giardino Mall, it said.Providing its outlook for the general economy of the country, ValuStrat cited International Monetary Fund (IMF) report that said Qatar was expected to see its economy grow 4 percent in 2022.“Various international financial organisations have forecasted Qatar’s real GDP to grow above 3.5 percent in 2022. Significant increases in gas production and tourist receipts during FIFA World Cup 2022 will be the main drivers to boost the economy,” it said.“Qatar’s budget for 2022 was set at QR 204.3 billion, a growth of 4.9 percent YoY with a forecasted deficit of QR8.3 billion. The focus of the planned expenditure is on infrastructure, education and health sectors. The budget was based on an average oil price of $55 per barrel (up from $40 per barrel in 2021), reflecting the recovery in global energy prices,” it said.Oxford Economics has forecasted Brent Crude Oil to average at $72.5 per barrel in 2022, it said.“US Federal Reserve has signalled hikes in interest rate in 2022 which might be followed in suit by Qatar Central Bank,” the report said.