Land prices in Qatar are on the rise and ultimately this trend leads to an increase in rentals as the knock on effect is filtered down to the end consumer who wants to rent a property. According to a QNB Group report, land prices have increased by 52% since the beginning of 2014 with a rapid continuous increase starting from March of 2014. The expected increase in rentals will not be immediate as it takes time to filter down from developers to landlords so an increase in rentals could take up to a year or two to reflect in the rental market.
In the first half of 2014, 140 000 expats arrived in Qatar and with the trend expected to continue for the next few years demand for rentals is rapidly on the increase. The highest demand for residential properties in 2014 and early 2015, has been for West Bay and The Pearl.
Buying property in Qatar is also a consideration for expats who are intending to stay in Qatar for a longer period of time. Since 2004 it became legal for a foreigner to buy and own property in three large scale residential projects; The Pearl, West Bay Lagoon and Al Khor Resort project. Once a property has been purchased and all the paperwork finalized, the foreign national can apply for a 5 year Home Owners Visa which would give the new owner and their family the right to enter and live in Qatar. With bank interest rates on home loans under 5%, it may make more sense to own a property than paying the same monthly rental especially in light of the fact that property prices are expected to rise. In essence an expat could live in their own property paying a mortgage every month and then sell the property at the end of their stay and walk out with a hefty profit in their pockets.
It is vital in this process to make sure the property you are looking to purchase falls within the zones allowed for sale to foreigners and all the legalities are correctly administered. It is recommended that you deal with a reputable Estate Agent.
If you would like advice on whether to rent or buy a property, speak to a COREO consultant who can advise you on the best path to follow.
By Frederick Goss – Relocation Specialist – Coreo