Qatar Real Estate Report Q1 2013 - Al Asmakh Real Estate

© Copyright 2013, Al Asmakh Real Estate Development 

Qatar Real Estate Report 

Q1 2013


Q1 2013 

Macro Economic Overview 

GDP at Current 

Price 

Govt. Budget 

(% of GDP) 

Gross Value Added 

Q4 2011 Q4 2012 

QR 164.34 QR 180.87 

bn 

bn 

4.9% 5.0% 

* Mining and 

Quarrying Sector 

QR 96.63 bn QR 101.60 

bn 

* Non-Mining and QR 67.71 bn QR 79.28 bn 

Quarrying Sectors 

Consumer Price 109.6 112.46 

Index 

Inflation 2.1% 2.6% 

Qatar Exchange 

Index 

8,779.03 8,358.94 

Qatar retained its ranking as the 

world's richest country in 2012, with 

its per capita income rising to a 

brilliant USD 106,000, Qatar 

Investment Authority (QIA), with 

assets of USD115bn, was ranked 12th 

among sovereign wealth funds in the 

world. 

At the end of Q4 2012, Qatar GDP 

increased to USD 180.87bn from 

earlier reported USD 175.29bn in 

Q3 2012. 

In 2012, real estate credit reached to 

QAR 85,561.5mn which is around 18% 

of total domestic credit of QAR 

476,885.7mn. 

Gross Domestic Product 

Ref: The World Bank / QSA 

Inflation Rate 

Consumer Prices (Annual %) 

Total Domestic 376,695.2 476,885.7 

Credit (Mn QR) 

Real Estate Credit 76,220.4 85,561.5 

(Mn QR) 

Repo Rate 4.5% 4.5% 

Lending Rate 

(3yrs & above) 

Deposite Rate 

(1yr+) 

5.03% 5.58% 

1.96% 2.45% 

Gold Rate (USD/oz) 1,566.40 1,664.00 

Silver Rate 

(USD/oz) 

27.86 30.35 

PS: All above data are as on 31th of Dec 2011 and Dec 2012 

Real Estate Transactions 

Within Q1 2013, around QAR 7.61bn 

worth of transactions were 

recognized. Where the Real Estate 

Index is concerned, it is 5.71% higher 

than Dec 2011. 

Major banks in Qatar have posted 

growth in 2012 which is likely to 

upsurge in increased lending and 

deposits rates. 

Net foreign assets of the banking sector 

have increased to QAR 51,960.5mn, the 

overall growth is 321.9% between Feb 

2012 and Feb 2013. 

Real Estate Price Index 

Ref: The World Bank 

Ref: QCB 

Qatar Exchange 

Credit Facilities 

Ref: MOJ 

Ref: QCB 

Ref: QCB 

In Million of QAR 

1



Residential Market Overview 

Qatar population reached to 1.92mn as of March 31, 2013 with YOY growth 

rate of 8.5% which may realize higher demand for new housing units, 

especially from expatriate population. Doha and Al Rayyan municipalities 

remain as main hub for new supply. 

Since last quarter, sales prices remain more or less stable; however in few 

localities, about 3-5% appreciation have been recognised. The Pearl persist as 

preferable location for the outsider retail investors. Localities such as 

Al Sadd, Bin Mahmoud, and Al Nasr, however, may fetch equal demand due to 

approachability and USUFRUCT status. The Pearl contributes the highest 

supply in residential market followed by West Bay. Minor appreciation have 

been seen in the sale prices; currently, freehold and USUFRUCT properties are 

available in the range of QAR 10,000 to 14,000 per sq m on net saleable area. 

Ref: QSA 

Available Residential 

Constructed Units 

Average Freehold and 

Leasehold(Usufruct) Sales Price 

Rental prices are surged in last quarter. This appreciation was noticed across 

Doha and in peripheral areas, including both apartment and villa segments. 

The average monthly rentals for 2BR apartments within Doha limit are in the 

range of QAR 8,000 to QAR 14,000. The Pearl and Diplomat district as usual, 

commands higher rental than other localities. 

The monthly rentals in villas with 3BR - 4BR accommodation range from 

QAR 13,000 to QAR 18,000. Al Waab, Al Mamoura, Al Garraffa, Al Hilal 

remain the favourable locations 

Residential Market Gauge among expatriate segment. Due to 

limited supply in compound 

Q4 12 Q1 13 development, the pressure on supply 

side have been increasing especially in 

Unit Sales 

terms of rentals. 

Ref: AREDC Research 

Prices are in QAR/Sq.M on BUA 

Apartment Sales Price – Trend 

Rental Trend 

Occupancy 

Overall Market 

Average Rental of 2BR 

Apartment in Prime Areas 

Many companies have been moving 

their employee accommodations to 

nearby areas such as Al Wakra, Al 

Aziziyah, and Umm Salal. Thanks to 

better connectivity to the city center 

areas, development of local shopping 

complexes, and ever increasing 

rentals within Doha city limits, these 

locations are becoming favourable 

choices for companies. 

The overall outlook for the residential 

market within Doha city limits looks 

stable and may see stable growth 

both in outright sales and rentals in 

upcoming quarters. 


Prices are in QAR/Sq M 

Average Rental Trend of 2BR 

Apartment in Prime Areas 


Prices are in QAR/Month 


Prices are in QAR/Month 

2



Office Market Overview 

The West Bay, despite of tagged as new CBD of Qatar, the major inclination 

from new companies have been towards old CBD areas such as Grand 

Hamad Street, C/D Ring roads, etc. The reasons are moderate sizes, low 

rentals, approachability to Doha city center areas, and so forth. Office rentals 

within he West Bay is in the range of QAR 200 to QAR 250 per sq m per 

month, whereas, rentals on C/D ring road are in between QAR 120 to QAR 

150 per sq m per month. 

The average appreciation in rentals within last quarter across the Doha 

offices market was around 6%. The highest appreciation of 11% was noticed 

in Westbay area, however, Old Salata area remain stable for office rentals. 

The highest occupancy has been seen on Grand Hamad Street followed by 

C/D ring road. 


Available Office Space 

Distribution 

Demand-Supply-Vacancy 

Commencement of Salwa Road underpasses has increasing demand for 

commercial places in the surrounding areas. Average office space around 150 

sq.m size may be available to lease with average rental of QR 110 per sq.m. 

Within Q1 2013, registered inventory in commercial and retail area segment 

on C/D Ring road is around 110,000 sq m, and about 75,000 sq m in Old 

Salata with expected rental of QAR 135 per sq m per month. 

Office Market Gauge 

Q4 12 Q1 13 

Unit Sales 

Rental Trend 

Occupancy 


Average Rental in Prime Areas 

Because of higher fixed cost on office 

rental, sMaller companies are started 

inclining towards the “Virtual Office” 

concept. Bigger international players 

such as Regus and Servcorp have 

been offering various sizes of offices. 

Moreover, within last qarter, around 

2000 sq m office space on Grand 

Hamad Road was taken by an another 

international player to open such 

ready to use offices. 

Promising support from the Qatar 

government encourage international 

players to come to Qatar. MasterCard 

decided to open their third region 

office within Qatar after Dubai and 

Riyadh. 



Average Office Sizes 

Average Rental - Trend 


Prices are in QAR/Sq M/Month 

Within Q1 2013, AREDC has 

experienced demands from many 

international players to acquire lands 

to establish their operations. These 

demands are mainly for the lands 

located either on Salwa Road or on 

Al Shamal road. 



3



Land Market Overview 

Owing to enhanced approachability and self sustainability, peripheral areas 

such as Al Shamal road, Salwa road beyond D-Ring road, Al Wakra, Umm 

Salal and so forth have been coming up and would become primary choices 

for international as well as local investors. The AREDC research team has 

came across many developments on the respective localities which are at 

initial stage of proposals. 

Distribution of Land by 

Municipalities 

As a result of infrastructure development, easy accessibility to Salwa road 

and industrial area, many lands are in demand in areas such as Abu Sidraa 

for various developments, but mostly for villa compounds. Similarly, lands on 

Al Shamal road in Umm Salal municipality are equally in demand due to 

recent developments of Malls and easy access to northern part of Qatar. 

On the contrary, existing villa compounds such as Al Bustan on C-ring road 

was demolished for new commercial-residential development. The average 

price of commercial lands on Salwa road is around QAR 2,400 per sq ft. 

Scarcity in supply and high demand, lands on Grand Hamad Street may fetch 

as high as QAR 4,000 per sq.ft. The array of land prices in West Bay/ Al 

Dafna area are QAR 2,800 to QAR 2,200 per sq ft based on proposed land use. 

The favourable areas for villa development are Al Waab, Duhail, Ain Khalid, 

Madinat Khalifa, Al Hilal and so forth. The average price of the lands within 

these area are in the range of 

Land Market Gauge QAR 320 to QAR 480 per sq ft. 

Ref: QSA 

Investor Demand by Purpose 


Land Sales 

Proposal for 

Development 



Average Land Prices 

Within proposed multibillion dollar futuristic Lusail City project, the land 

prices in the Marina district are in the range of QAR 1,250 to QAR 1,800 

per sq ft. However, lands in the Fox Hill district may realize up to QAR 700 per 

sq ft. Despite of little slowed down of the project, the demand for securing 

lands have been continuing from the local as well as overseas investors. 

Within Q1 2013, the land market remain dynamic across all the segments of 

real estate, however, the major inclination keep on persistent towards 

residential developments as a result of strong demand for new residential 

units. 


Prices are in QAR/Sq F 

4



Retail Market Overview 

Owing to higher demand for the organized retail; the construction activities 

in several Malls have been restarted. For upcoming Malls, such as Al Mirqab 

Mall, the construction activity is on full swing which is likely to be completed 

by Q1 2014. 

Available Retail Constructed 

Space 

Within last quarter, Ezdan Mall launched which has added about 40,000 sq m 

leasable area on Al Shamal road. As a part of primary phase of Doha Festival 

City, IKEA has resumed its first outlet within Qatar. Within Doha city limit, 

Al Sadd Mall which offers around 9,500 sq m leasable area has began its 

leasing activity. 

The average rental in Landmark Mall is around QAR 275 per sq m per month. 

However, leasing in Ezdan Mall may cost in the range of QAR 200 to QAR 250 

per sq m per month. The expected rental in Dar Al Salam Mall which is located 

in Al Mamoura and mainly developed to cater households of surrounding villa 

compounds is around QAR 200 to QAR 225 per sq m per month. 

The occupancies in major Malls such as City Center, Landmark, Villagio, 

Centerpoint, The Center, and so forth are up to 80%, with QoQ appreciation 

of 5% to 7% on rental prices. However, Occupancy status in other smaller 

Malls are in the range of 40% to 50%. The major reason for such low 

occupancy is their locations. 

Retail Market Gauge 

Rental Trend 

Occupancy 

Sentiments 



Retail Future Supply 

Distribution in Malls 


Due to limited major brands which 

create greater footfalls in to a Mall, 

now operators of new Malls are 

turning towards inviting well-known 

food chains so they may attract 

attention towards them. In fact, food 

courts have been taking place of 

hypermarkets which are main 

destination for shopping in any Mall 

and a major footfalls creator. 

The new Malls have been coming up, 

but having said that, the major retail 

activities still remain within old souqs 

and scattered retails shops near city 

center areas of Doha. However, such 

activities are majorly into non-luxury, 

wholesale, and trading segments. 

Barwa Village is one of the center piece 

which is able to create a bridge 

between conventional retail and a Mall 

experience. The segmentation of retail 

within the development has been 

working well for attracting masses. 


Distribution of Retail Spaces in 

Malls 


Average Rental in Prime Malls 


Average Rental Trend in Malls 




5



Hospitality Market Overview 

Thanks to deliberate efforts from Qatar government to enhance tourism 

sector, a little increase has been seen in last quarter on the occupancy side. 

Currently, around 60 hotels of 4/5 star categories have been operating out 

of Qatar. In that sense, around 33% hotels are 5 star, and 27% hotels are 4 

star category which together offer around 14,173 keys out of total supply of 

16,741 keys excluding 2,136 hotel apartments. 

Within Q1 2013, the average ADR across all segments was around USD 235 

with around 68% average occupancy. However, RavPAR remained stable at 

USD 160. Upper upscale hotels had the highest occupancy with ADR of 

around USD 200, whereas, Luxury segment had experienced lowest 

occupancy, but having said that ADR maintained at USD 300. 

Available Hotels/Service Apts. 

Supply 


Distribution of Hotels by Rating 

Two 5 star hotels are likely to be operated by end of this year which will add 

further nearly 610 rooms. Hotels in non-rated segment are the lowest 

contributor in terms of rooms available; currently, around 300 rooms are 

under various stage of completion within this segment. 

Many companies and individuals within the Arab region, prefer nonalcoholic 

hotel for a stay. As per AREDC for year 2012 on room night 

percentage research, around 9.2% guests were from Egypt, and 8.8% 

from UK which were highest after local Qatari guests of around 10.5%. 

Asia and Africa together contributed 

Hospitality Market Gauge nearly 17%, whereas Europe stood at 

28% followed by GCC countries which 

Q4 12 Q1 13 was at 22.6%. Guests from rest of Arab 

region added 23.2%. 

ADR 

Occupancy 

RavPAR 


Occupancy Rate/ADR/RavPAR 

Q1 2013 was overall decent enough for 

hospitality market owing to increase in 

business activities, and favourable 

weather conditions for travelling to 

Qatar during this time of the year. 

Nationality wise Visitors in 

a Non-alcoholic Hotels 


Distribution of Hotels by 

Rooms 


Future Hotel Supply in 

Premium Segment 

Ref: AREDC Research Ref: AREDC Research Ref: AREDC Research 

Prices are in USD 

6



Project Analysis – “The Pearl” 

“The Pearl” is a man-made island which is made by reclaiming 985 acres land 

with around 32 kms of new coastline. Total 12 districts comprise around 

19,000 residential units, 7 hotels of various capacities, around 225,000 sq m 

retail spaces, restaurants, spas, beaches, and other community services. It is 

basically a lifestyle project which mainly targets expats who intend to live in 

well organised communities. Unlike other areas of Qatar, the project is 

designated as freehold where any expat may own a unit. 

The project was initially launched in 1999, and ever since then construction 

has been underway in four phases. Upon completion, nearly 4.73mn sq m 

gross area is likely to be delivered. Apart from other major developers, UDC 

owns around 45% stake in the project. 

Porto Arabia and Viva Bahriyah are comprised of 60 towers with around 13,000 

units which have been developing mainly for residential apartments. Qanat 

Quartier and Abraj Quartier are consisted of about 2,300 apartments. Giardino 

Villas which is the biggest villa district is comprises of nearly 250 villas that is 

around 20% of over all villas within The Pearl. Upon completion, the project may 

accommodate nearly 1,300 villas of different sizes, including some exclusive 

villas with private beaches. The most magnificent district is Isola Dana which has 

9 private islands with an average plot size of 18,000 sq m, and private yacht 

berths. All the islands are connected to a common main road of The Pearl. 

Distribution of NSA/GSA 

[District wise] 

Porto Arabia is the biggest hub for 

retail activities with around 78,300 

sq m net saleable area. Medina 

Centrale will offer around 58,000 sq m 

net saleable area, and Qanat Quartier 

will contribute nearly 30,000 sq m 

gross saleable area. 

Distribution of Apartments 



Distribution of Villas 

Proposed Distribution of 

NSA/GSA [Phase wise] 


Accommodation wise 

Unit Distribution 

Seven premium hotels of various 

capacities are planned within The Pearl, 

upon completion, around 1,600 keys 

will be delivered in 4/5 star hospitality 

segment. 



7



News Headlines of Q1 2013 

UDC signs QR795m deal to build The Pearl Qatar towers: United Development Company (UDC) has signed a 

QR795m ($218m) contract with a leading Qatari construction company to build the two Abraj Quartier AQ01 

and AQ02 Gateway Office towers at The Pearl-Qatar. Standing high at around 201 metres on opposite sides 

of the main access road to The Pearl-Qatar, the two 40-storey towers will boast a build up area of more than 

230,000 square metres. Construction works commenced on February 15 and is expected to be completed by 

the end of January, 2016. (Ref: The Peninsula Qatar Mar 11, 2013) 

Msheireb signs contract to restore heritage area: A QR330mn contract for restoration and construction 

work in the Heritage Quarter within Phase 1A of Msheireb Downtown Doha development has been awarded 

by Msheireb Properties to Qatari Arabian Construction Company (QACC). The project involves restoring four 

historical houses, known as the ‘Heritage Houses’, renovating the Eid Prayer Ground and building the Juma’a 

Mosque dating back to the first decade of the last century. The restored Heritage Houses – Jalmood House, 

Company House, Mohamed Bin Jassim House and Al Radwani House – will be the centrepiece of the quarter, 

creating an important cultural destination within the Msheireb project. The four courtyard houses, including 

the family house of Mohamed Bin Jassim, the son of the founder of modern Qatar, will be converted into 

museums, cultural centres and exhibition buildings. In the process, they will bring back significant aspects of 

Qatar’s history and shared memories. Covering 110,000sqm of gross floor area (GFA), Phase 1A also 

incorporates the Diwan Amiri Quarter, the Amiri Guard residences and the Qatar National Archive. 

(Ref: Gulf Times Feb 04, 2013) 

Qataris pay $605 mln for luxury London hotel: Qatari-backed investor Constellation Hotels has bought the 

InterContinental London Park Lane hotel in a deal worth about 400 million pounds ($605 million), a source 

close to the transaction told Reuters. Constellation paid 301.5 million pounds ($456 million) for 

InterContinental Hotel Group's (IHG) 57-year lease on the 447-bedroom property close to Hyde Park, IHG said 

on Thursday. In a separate deal, Constellation paid about 100 million pounds for the freehold, which was 

owned by the Crown Estate, the property company that controls the assets of Queen Elizabeth II, the source 

said. The 301.5 million pound price tag is 62 percent above the hotel's book value, showing the strength of 

demand for trophy London real estate and five-star hotels in particular. (Ref: Reuter March 28, 2013) 

Qatar’s broad money supply reaches QR381.1bn in Dec: In what is seen as an indication of domestic 

liquidity, Qatar’s broad money supply (M2) reached QR381.1bn in December 2012, up 27.2% year-on-year 

with lift off provided by foreign currency demand deposits with commercial banks, a QNB study shows. 

The total domestic deposits with Qatar banks reached QR458bn in 2012, up 26% on the previous year. 

The public sector again was the key growth driver for overall gains in the banking sector deposits. 

Deposits received from the public sector shot up by 43.6% (QR54.8bn) in 2012 and came mainly in the form 

of long-term foreign currency deposits. (Ref: Gulf Times March 14, 2013) 

Qatar richest country in the world: IIF: Qatar retained its ranking as the world's richest country in 2012, with 

its per capita income soaring to an incredible $106,000, while Qatar Investment Authority ( QIA ), with assets 

of $115bn, was ranked 12th among sovereign wealth funds in the world. Washington-based Institute for 

International Finance (IIF) has reported that Qatar's per capita GDP at purchasing power parity (PPP) was 

$106,000 (QR387,000) in 2012, helping the country retain its ranking as the world's wealthiest 

nation. (Ref: The Peninsula Qatar March 15, 2013) 

8

Topic of the Quarter: Title Conveyance Process in Qatar 



This standard case is presented for an investor or entrepreneur who may want to purchase any real estate 

property such as land, building, apartment, and so forth. 

The fee for registering any property as per law no. 14 of 1964 as amended by law no. 16 of 1989 is 0.25% of 

the purchase price. In Addition, QAR 5 is applicable for authentication of each document. Standard 

turnaround time for complete process is around 7 working days. 

At the beginning, both principals have to submit their ID cards with a copy of tittle deed, and the registration 

application duly filled and signed by both principals. An application fee of QAR 15 must be paid at Customer 

Service desk which includes QAR 10 for the paper on which the new title will be printed, and QAR 5 for the plan. 

Buyer and seller have to sign and submit the sale and purchase agreement to the archive office to check for 

encumbrances, and to register the title information in archive database. The buyer pays the transfer fee at 

the Customer Services counter. 

The director of Authentication Department checks the original title deed and that the seller is the real owner 

and verifies the transfer agreement. The application is accepted and approved by the director if everything is 

legal, valid and complete. The director shall then draw up minutes of the contract and have them signed by 

the contracting parties in the presence of two adult witnesses. If both parties fail to attend the government 

department due to any convincing reasons, the contract may be heard in a private session. As an alternative, 

any solicitor or a person with original title conveyance, and a power of attorney may handle all the 

procedures. 

Upon completion, the contract and relevant documents shall be sent to register section for it to be recorded 

in the property folio, and in alphabetical index. 

Title deed or registration certificate will be issued in the name of new purchaser or right holder as the case 

may be. 

The buyer will receive his final title deed in his name. 

Ref: World Bank 

Definitions and Methodology 

• IMF: International Monetary Fund. 

• QSA: Qatar Statistics Authority 

• QCB: Qatar Central Bank 

• MOJ: Ministry of Justice 

• IIF: The Institute of International Finance 

• Market Gauge 

- Bettering as compare to previous quarter 

- Remained stable as of previous quarter 

- Reducing as compare to previous quarter 

• Available Constructed Units refers to those units which are completed and either sold, leased out or in vacant possession. 

• Average sales price: The most likely price to be obtained in particular area in normal sales conditions. 

• Average Rental: The most likely rental to be achieved in particular area in normal sales conditions. 

• Average office sizes: The most likely size available in particular area in normal market conditions. 

• Prominent Buildings: The buildings which are famous owing to popularity. 

• Main Malls: Malls which are famous owing to popularity. 

• GLA: Gross Leasable Area BUA: Built Up Area 

9



Fadi Barakeh 

General Manager 

E: gm@alasmakhrealestate.com 

Gaurav Borikar, MRICS 

Head of Valuations and Research 

Principle Author 

E:gaurav.borikar@alasmakhrealestate.com 

Contributors: 

Khalid Yassin 

Deputy General Manager 

E: y.khaled@alasmakhrealestate.com 

Feras Al Khatib 

Head of Sales Department 

E: k.feras@alasmakhrealestate.com 

Rami El Fares 

Senior Sales & Marketing Manager 

E: f.rami@alalasmakhrealestate.com 

Neveen Haroun 

Leasing and Business Development Manager 

E: n.haroun@alasmakhrealestate.com 

Tony Allam 

Head of Escrow Services [Title Conveyance Department] 

E: tony.allam@alasmakhrealestate.com 

Exclusive Disclaimer: This report has been 

prepared by Al-Asmakh Real Estate Development 

for general information only. No research source is 

guaranteed to be accurate so the report. AlAsmakh 

Real Estate Development shall not, in any event 

whatsoever, be liable or responsible for the any 

indirect, incidental, special or consequential losses 

or for any economic loss including loss of profit, 

revenue, goodwill or anticipated savings of the 

Bank or other Persons, however caused and 

whether arising in contract, tort (including active, 

passive or imputed negligence) or otherwise. 

© Copyright 2013 Al Asmakh Real Estate Development 

Al Asmakh Real Estate Development Co. is an ISO 

accredited multidisciplinary real estate consultancy 

firm formed on the foundation of exceptional, 

personalized services. With years of experience in 

the Qatar real estate market, AREDC offers high 

quality services to include selling, renting, 

marketing, asset management, property portfolio 

management as well as valuations, research, 

financial and investment consultancy. 

AREDC advisory team works closely with clients to 

help them understand where to invest, the risks 

involved and what benefits to expect. We have a 

dedicated team with industry knowledge and 

access to sophisticated techniques which enable us 

to provide expert and professional advice on 

developments, from the smallest to the world's 

biggest and most ambitious. 

Nevertheless, we understand the requisites of 

highest standards in rendering consultancy 

services: hence, our department follows guidelines 

issued by RICS (Royal Institution of Chartered 

Surveyor), and International Valuation Standards 

with the consideration of IFRS. 

With an obsession for professional ethics and 

principles, AREDC delivers extra value to clients. 

Uncompromising adherence to the laws of the 

country and a commitment to the highest 

maintenance standards set AREDC apart from other 

competing firms. One of the greatest benefits in 

working with AREDC is the consistent quality of 

service that clients receive. AREDC’s complete 

management solutions and proactive oversight 

ensures that it will continue to hold the position as 

the leading real estate firm within Qatar. 

Should you be interested in receiving our forthcoming 

reports at your mailing address, write back to us on: 

P.O.Box 9012, Doha, Qatar 

Tel: (+974) 4448 5111 / 4436 0265 

Fax: (+974) 4435 4728 

Email: advisory@alasmakhrealestate.com 

Web: www.alasmakhrealestate.com

Qatar Real Estate Report Q1 2013 - Al Asmakh Real Estate

Create successful ePaper yourself

Delete template?

Save as template?