Qatar 2022/ Qatari Diar Unveils Plans for New Projects After World Cup

Doha, December 12 (QNA) - Qatari Diar unveiled plans to launch new real estate projects after the FIFA World Cup Qatar 2022, enhancing the growth process of the real estate investment sector, which is witnessing a boom since implementing major projects and world cup-related projects in the country. In an exclusive interview with Qatar News Agency (QNA), Qatari Diar Real Estate's Chief Investment Officer Ahmad Mohammad Al Tayeb said that the real estate sector continues its momentum, benefiting from the recovery of tourism, the generous spending on economic sectors and other projects in the country. Regarding the advantages and facilities granted to the sector, he said that in conjunction with hosting the tournament, the state thankfully provided direct support to the real estate sector such as incentive packages, laws that allow non-Qataris to own real estate, according to the Cabinet Resolution No (28) of 2020. At that time, it was announced that 25 areas would be allocated, where non-Qataris would be allowed to own property under the usufruct system, and nine other areas where free ownership would be allowed. Regarding the World Cup's contribution to improving the sector's revenues and returns, Qatari Diar Real Estate's Chief Investment noted the remarkable rise in occupancy rates of real estate units, including hotels, in light of the continued flow of fans wishing to attend the World Cup and its accompanying events, contributing in the recovery of the sector and supporting its march. World cup related infrastructure projects such as stadiums, road projects, metro, tunnels, bridges, and others also contributed to developing the sector. The real estate sector has benefited from the volume of this spending, estimated over the past years to accumulate to 730 billion riyals. This spending also encouraged the private sector to expand in building hotels, residential units, and commercial and entertainment projects, helping to stimulate the construction and reconstruction operations, leading to an increase in the number of real estate units and their occupancy rate, especially after the state took the initiative to rent about 45,000 housing units for 5 years, which supported the sector’s investors and boosted its revenues, he added. Regarding the reality of the market, Al Tayeb drew attention to the conclusions of the report issued by Cushman and Wakefield, a real estate consulting company, confirming that the market is going through a huge boom, coinciding with economic developments and the steady increase in the number of residents, which supported the real estate sector significantly. The report monitored a large demand for renting residential real estate to World Cup visitors, during Q3 of 2022, which led to an increase in the rental value by 20-30 percent for apartments, and 5-10 percent for villas, significantly boosting investment returns, he noted. In regard to the implications of raising the interest rate on the local market, Al Tayeb explained that what is happening in the global financial markets aims to reduce inflation. Its impact will be temporary on real estate investment since it relies on bank financing. This is a corrective period and will not exceed more than a year. After that, the sector will continue its growth with the new real estate projects that will be announced after the end of the tournament, especially in the tourism sector, which is expected to grow four times over the coming years reaching its peak in 2030. The volume of the company's investments in the State of Qatar is estimated at QR 50 billion. Qatari Diar has implemented several projects including Lusail City, a smart city that embodies Qatar National Vision 2030, Qatar National Convention Centre, Sheraton Park, Al Legtaifiya Lagoon, and the commercial street in Abu Hamour. The company owns 50 investment projects under development in 22 countries worldwide, distributed between existing projects and others still in development in Europe, America, Asia, and Africa. The total investment value of these projects is $35 billion. (QNA)