Qatar land prices rising too fast?

Reading Time: 2 minutes

Doha birds viewReal estate experts and economists are warning that rising land prices in Qatar, especially in Doha, could have a negative impact on real estate and foreign investment, AL Shorfa reported.

The cost of land has seen a steady increase in recent years, with current prices estimated to have risen by 500 per cent since 2010, Roots Real Estate director Ahmed Al Arouqi said.

Al Arouqi warned of increasing prices in the coming years, “especially after the government launched projects for the 2022 World Cup”.

Land prices have increased significantly this year in various parts of Doha, he said. The highest prices can be found in Al Abraj area of Al Dafna, where land can cost 2,500 Qatari riyals ($685) per square foot, followed by Pearl Island at 2,000 riyals per square foot ($550), then Lusail City at 1,500 riyals ($410), he added.

“This will negatively affect the Qatari private sector and foreign investors alike,” he said. “Feasibility studies for real estate investment projects have become useless because the final product, housing units, would be too expensive and the returns on property rents unprofitable.”

“This colossal rise in land prices is artificial and does not reflect real prices,” said Qatari businessman Ahmed Hussein Al Khalaf, who serves on the board of directors of the Chamber of Commerce and Industry. He attributed this inflation in prices to speculation.

“The high cost of land in various Qatari cities will impact real estate investments and raise the price of villas, apartments, hotels, malls and commercial areas to an unreasonable degree,” he said.

He cautioned that such inflation could lead to the flight of foreign investors because the high price of real estate will raise rents and the cost of living in general.

Al Khalaf called on the Qatari government to open new areas, such as the suburbs of Umm Salal Ali, Al Wakra and Al Wukair, and annex them to the capital, in order to widen the availability of land for real estate development.

“The rise in land prices across all Qatari municipalities is incomprehensible, and has contributed to inflation, since the cost of land needed for any project is now a high proportion of the total cost of the project,” said businessman Abdul Aziz Al Emadi, former chairman of the Chamber of Commerce and Industry.

Al Emadi said he expected that projects related to the World Cup would further raise land prices, and appealed to the government to intervene by opening new areas of land for development at affordable prices in order to achieve a balance in prices. The high cost of land is not limited to Doha, but extends to other parts of the country, he said.

Al Emadi warned against what he described as manipulation by speculators, calling on the government to intervene “to find a root solution to this phenomenon, which negatively affects the Qatari economy”.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Real estate experts and economists are warning that rising land prices in Qatar, especially in Doha, could have a negative impact on real estate and foreign investment, AL Shorfa reported. The cost of land has seen a steady increase in recent years, with current prices estimated to have risen by 500 per cent since 2010, Roots Real Estate director Ahmed Al Arouqi said. Al Arouqi warned of increasing prices in the coming years, "especially after the government launched projects for the 2022 World Cup". Land prices have increased significantly this year in various parts of Doha, he said. The highest...

Reading Time: 2 minutes

Doha birds viewReal estate experts and economists are warning that rising land prices in Qatar, especially in Doha, could have a negative impact on real estate and foreign investment, AL Shorfa reported.

The cost of land has seen a steady increase in recent years, with current prices estimated to have risen by 500 per cent since 2010, Roots Real Estate director Ahmed Al Arouqi said.

Al Arouqi warned of increasing prices in the coming years, “especially after the government launched projects for the 2022 World Cup”.

Land prices have increased significantly this year in various parts of Doha, he said. The highest prices can be found in Al Abraj area of Al Dafna, where land can cost 2,500 Qatari riyals ($685) per square foot, followed by Pearl Island at 2,000 riyals per square foot ($550), then Lusail City at 1,500 riyals ($410), he added.

“This will negatively affect the Qatari private sector and foreign investors alike,” he said. “Feasibility studies for real estate investment projects have become useless because the final product, housing units, would be too expensive and the returns on property rents unprofitable.”

“This colossal rise in land prices is artificial and does not reflect real prices,” said Qatari businessman Ahmed Hussein Al Khalaf, who serves on the board of directors of the Chamber of Commerce and Industry. He attributed this inflation in prices to speculation.

“The high cost of land in various Qatari cities will impact real estate investments and raise the price of villas, apartments, hotels, malls and commercial areas to an unreasonable degree,” he said.

He cautioned that such inflation could lead to the flight of foreign investors because the high price of real estate will raise rents and the cost of living in general.

Al Khalaf called on the Qatari government to open new areas, such as the suburbs of Umm Salal Ali, Al Wakra and Al Wukair, and annex them to the capital, in order to widen the availability of land for real estate development.

“The rise in land prices across all Qatari municipalities is incomprehensible, and has contributed to inflation, since the cost of land needed for any project is now a high proportion of the total cost of the project,” said businessman Abdul Aziz Al Emadi, former chairman of the Chamber of Commerce and Industry.

Al Emadi said he expected that projects related to the World Cup would further raise land prices, and appealed to the government to intervene by opening new areas of land for development at affordable prices in order to achieve a balance in prices. The high cost of land is not limited to Doha, but extends to other parts of the country, he said.

Al Emadi warned against what he described as manipulation by speculators, calling on the government to intervene “to find a root solution to this phenomenon, which negatively affects the Qatari economy”.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid