(MENAFN- The Peninsula)
Deepak John
|
The Peninsula
Doha, Qatar: Qatar's Real estate sector offers several opportunities and the sector is expected to grow steadily in the future to achieve almost QR155.7bn by the end of 2028.
The real estate activities and construction sectors together have grown by 3.4 percent in 2023 accounting for QR132.4bn. They contributed to almost 19 percent of Qatar's GDP. This reflects the importance of the two sectors, as they contribute to almost one-third of Qatar's non-oil sector, Property Finder (a leading real estate platform in MENA) Residential Real Estate annual report has noted.
The sector is expected to grow steadily in the future to achieve almost QR155.7bn by the end of 2028, which gives an indicator of how many opportunities the real estate and construction sector has in Qatar, but its contribution is expected to decrease to 17 percent.
The volume of real estate trading in sale contracts registered with the Real Estate Registration Department at the Ministry of Justice in May 2024, amounted to QR1,260,555,145. 322 real estate transactions were recorded during the month, as the number of properties sold index recorded an increase of 60 percent, compared to April 2024, while the value of real estate transactions index recorded an increase of 55 percent, and the index of traded areas recorded an increase of 58 percent.
According to Amiri Decision No. 28 of 2023 to establish the public authority for regulating the real estate sector, the establishment of RERA signifies a pivotal step towards regulating and organising the real estate sector in Qatar.
RERA's formation is integral to implementing the real estate sector's development strategy, fostering transparency, and stimulating sectoral growth. It provides a structured framework for overseeing real estate activities and ensuring compliance with regulations, thereby enhancing investor confidence and market stability.
Last year, the Ministry of Municipality also launched Real Estate Platform of Qatar offering accurate date and statistics about real estate sector. This marks a milestone in digitizing real estate services and enhancing accessibility to critical data. QREP provides a centralised online portal that offers free access to real estate information, facilitates business transactions, and promotes transparency.
The report further said, Qatar's economy witnessed a significant boost to economic activity driven by the country hosting the FIFA World Cup 2022 and by high global energy prices and demand. Despite a slight deceleration in 2023, with nominal GDP dipping from QR860bn to QR827.5bn, the outlook remains optimistic, poised to nearly reach QR840bn by the conclusion of 2024.
The country's economic growth is expected to continue in the next few years, reaching almost QR1,366bn by the end of 2028. The real growth rate is expected to average between 2 percent and 3 percent except for 2026 and 2027 which are expected to grow by 6 percent and 14 percent respectively. This major economic boost is anticipated due to the Northfield liquefied natural gas (LNG) expansion project which is expected to start production in 2026.
Qatar's economy is primarily dependent on the mining and quarrying sector, which accounted for up to 37 percent of the GDP in 2023. This sector's share is expected to increase to 39 percent by 2028, following the commencement of the LNG project.
Such heavy reliance on hydrocarbon exports has propelled Qatar to become one of the world's wealthiest economies, boasting a GDP per capita of $75,000 in 2023.
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