Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar's inflation projected at 3.8pc this year  Join our daily free Newsletter

MENAFN - The Peninsula - 09/02/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - The Peninsula) Driven by high rentals, Qatar's overall inflation is projected to accelerate from 3.1 percent in 2013 to 3.8 percent in 2014. A recovery in land prices over the past two months is expected to reverse the slowdown in rent inflation by mid -2014



Rental inflation accounts for around 32 percent of Qatar's CPI basket. QNB Group noted yesterday that rent inflation has slowed in recent months in line with its earlier projections. However, a recovery in land prices in December 2013 and January 2014 could reverse the slowdown in rent inflation in the coming months



Rent inflation slowed from 6.7 percent in the year to August 2013 to 4.8 percent in the year to December 2013, based on Consumer Price Index (CPI) data released by the Ministry of Development Planning and Statistics (MSDP). QNB Group has analysed data purely on land transactions in Qatar, based on weekly statistics published by the Ministry of Justice (MoJ). This data suggests that the slowdown in rent inflation tracked land prices with a six-month delay



Land prices fell from March to November 2013 on the basis of an average of prices for the last 12 months. As rents tend to follow land prices with a six-month delay, we expect rent inflation to continue to slow to below 4 percent between now and May 2014



QNB research note said land prices are a fundamental driver of rents. Land is the main component of the cost of building, developing and buying real estate. To recoup costs, landowners and real estate developers need traise rents in line with rising land prices, or vice versa. Therefore, after land is purchased and construction is completed, rents are likely to move in the same direction as land prices. Our analysis confirms that there is a strong relationship between land prices and rent inflation. Rents tend to follow land prices with a six month delay, with a correlation of 88 percent




QNB Group noted that the updated transaction data suggest that land prices may have changed direction in December and January, which, in around six months, could create upward pressure on rents.



Looking ahead, QNB Group expects land prices to continue to rise moderately, based on strong population growth, which should underpin demand for land in order to develop housing and commercial real estate projects. Population growth averaged 10.1 percent over the last 12 months, based on data on the number of people in the country. Therefore, in the second half of 2014, we expect rent inflation to pick up again to between 4.0 percent-5.0 percent. This level of rent inflation is moderate and should alleviate any concerns that the real estate sector is entering an asset-price bubble or that the economy is overheating



Overall, rental inflation accounts for around 32 percent of Qatar's CPI basket. The remainder of the CPI basket mainly relates to global inflation and international food prices. Global prices are expected to remain moderate through 2014.



This will result in overall CPI inflation in Qatar in 2014 of around 3.8 percent

 


The Peninsula




  MENA News Headlines
 Feb 24 2017 - Minister of Investment participates in Egyptian-Lebanese Business Forum in LebanonDaily News Egypt
(MENAFN - Daily News Egypt) Minister of Investment and International Cooperation Sahar Nasr is scheduled to fly to Lebanon on a two-day visit to participate in the Egyptian-Lebanese Business ...

 Feb 24 2017 - Egypt- Defence Minister pays official visit to Hungary to discuss military cooperationDaily News Egypt
(MENAFN - Daily News Egypt) Egyptian Minister of Defence Sedki Sobhi held talks on Wednesday with his Hungarian counterpart, István Simicskó, in Budapest during an official visit paid by Sobhi to ...

 Feb 24 2017 - Egypt- Mobile operators offer their voice services to TEDaily News Egypt
(MENAFN - Daily News Egypt) Mobile phone companies offered their voice services to be used by Telecom Egypt (TE) in phases that are being agreed upon. TE is to offer mobile services this year. ...

 Feb 24 2017 - Egyptian parliament says Merkel is to visit Egypt next week, no German confirmation yetDaily News Egypt
(MENAFN - Daily News Egypt) The Egyptian parliament said in an official statement on Tuesday that German chancellor Angela Merkel will visit Egypt next week. There was, however, no confirmation ...

 Feb 24 2017 - Iraqi army storms Mosul airport in key attack on 'Islamic State'Daily News Egypt
(MENAFN - Daily News Egypt) The Iraqi military said on Thursday that special forces were closing in on "Islamic State" (IS) terrorists in the city of Mosul. State television reported that ...

 Feb 24 2017 - UN envoy doubts 'breakthrough' at Syria peace talksDaily News Egypt
(MENAFN - Daily News Egypt) Talks to end Syria's six-year conflict restart in Geneva on Thursday. They will be the first United Nations-mediated negotiations on Syria in almost a year, during ...

 Feb 24 2017 - Immigration Minister hosts Egypt's first workshop on harnessing migration for developmentDaily News Egypt
(MENAFN - Daily News Egypt) The Egyptian Ministry for Immigration and Egyptian Expatriate Affairs and the International Organization for Migration (IOM) have hosted Egypt's first international ...

 Feb 24 2017 - Minister of Investment participates in Egyptian-Lebanese Business Forum in LebanonDaily News Egypt
(MENAFN - Daily News Egypt) Minister of Investment and International Cooperation Sahar Nasr is scheduled to fly to Lebanon on a two-day visit to participate in the Egyptian-Lebanese Business ...

 Feb 24 2017 - Egypt- Defence Minister pays official visit to Hungary to discuss military cooperationDaily News Egypt
(MENAFN - Daily News Egypt) Egyptian Minister of Defence Sedki Sobhi held talks on Wednesday with his Hungarian counterpart, István Simicskó, in Budapest during an official visit paid by Sobhi to ...

 Feb 24 2017 - Egypt- Mobile operators offer their voice services to TEDaily News Egypt
(MENAFN - Daily News Egypt) Mobile phone companies offered their voice services to be used by Telecom Egypt (TE) in phases that are being agreed upon. TE is to offer mobile services this year. ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help