(MENAFN- The Peninsula) By Satish Kanady / The Peninsula
Supported by a series of policy-driven decisions, Qatar's real estate sector is expected to stage a strong turnaround in 2018.
Proposed law on foreign ownership, tax incentives, a balanced budget announcement for the coming fiscal, increased government spending and mega deals in pipelines…are some of the growth triggers that would help recover the market in 2018, before hitting an 8 percent growth in 2019.
Leading property developer SAK Holding Group said yesterday the government's focus on the completion of the major development projects; especially infrastructure projects in the health sector, education and transportation and projects related to the World Cup 2022, will atttract continued flow of real estate liquidity.
This will support the ability of real estate sector to respond to the requirements of the country's sustainable development agenda.
The soon-to-be expected new law on foreign ownership will revive the real estate market in 2018. The preparation of the draft law on the ownership of real estate for non-Qataris, which is due to be implemented next year is an initiative aimed at creating new opportunities for the real estate sector.
The proposed law is expected to provide an attractive environment for real estate investment and will help inject huge liquidity in the property market. This will increase the appetite of both resident and foreign investors looking for real estate opportunities affected by growing confidence in legislation protecting their investments and stability, SAK Holding Group's ‘Market Watch' report noted.
'The talk about the new law is based on what was reported by His Excellency the Prime Minister and Minister of Interior in a television interview that H H the Emir ordered the preparation of a draft law to own the property for non-Qataris and that it will be implemented during the coming year, the report said. Qatar's property market in general, remains a safe haven for a large segment of investors and savers.
This will lead to a recovery in real estate transactions, mainly residential properties, which contributed in the continued pumping of liquidity into real estate investment over the years.
The report noted that the country's real estate sector has weathered the blockade storm. The market is giving enough signals that it has overcome the siege impact. Market participants have strong faith in Qatari economy, supported by balanced government spending on infrastructure as well as other major projects.
Qatar's tax incentive is yet another attraction for investors in the real estate. Qatar provides tax exemptions from interest and banking revenues that do not engage in taxable activity whether resident or non-resident.
As well as the interest and proceeds of general treasury bills, development bonds, bonds of public institutions and capital gains arising from real estate actions by natural persons, provided that the properties being disposed of are not assets of a taxable activity.
Along with dividends and other income arising from equities, Qatar ranks first as the world's best corporate destination in terms of taxes and levies, the report said.
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