News: Rental rates quadruple in Qatar

Tue, 20 Nov 07

Rental rates in Qatar increased by an average of 20% to 30% in 2006, with experts predicting they will remain high due to supply vs. demand ratio...

With property reports, stating current demand is outweighing supply, buy-to-let property owners in Qatar are pocketing huge rental yields, and this trend is set to continue until supply equalizes.

The rise in rental rates has followed a liberalisation in real estate law, which has been designed to encourage residents to own property as opposed to rent, yet many residents are investing in property to capitalise on the lucrative rental yields that can be earned.

The economy in Qatar is without a doubt one of the strongest in the world and with a population of only 838,000, the country registered the highest income per capita in the world in 2006.

The Government has initiated several measures to liberalise laws in a bid to attract investment into various economic sectors such as real estate, tourism, and finance. The high rental rates have also had an effect on the country’s inflation rate, which is now among the highest within the Gulf Cooperation Council (GCC) countries.

Relaxed foreign ownership laws

In order to attract foreign property investment specifically, the Government relaxed foreign ownership laws. This has led to an increase in investments into not only property investment but also tourism, the financial market, oil, and gas sectors; the major increase in economic migration to the country is further boosting the country’s rental market.

New regional and international companies who have relocated to Qatar have had a direct effect on the demand for quality residential units.

Overseas property buyers can currently purchase real estate in designated freehold areas, which are West Bay Lagoon, Pearl Qatar, and Al Khor Resort. Eighteen other areas are currently available on a leasehold basis for a period of 99 years.

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