30 Dec 2017 - 12:37
Real estate boom
Qatar’s property market is expected to witness a boom after the Cabinet, at a meeting chaired by Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani, approved the draft law on regulating non-Qatari ownership and use of real estate. The draft law will provide an attractive environment for real estate investment and will help inject huge liquidity in the property market.
Under the provisions of the draft law, non-Qataris may own and use real estate, in the areas and in accordance with the conditions, controls and benefits specified by a decision from the Cabinet and based on the suggestion of the commission for regulating non-Qatari ownership and use of real estate. The law provisions are to be applicable on land space, buildings and residential units, and detachment units in residential complexes. The draft law will increase the appetite of both resident and foreign investors looking for real estate opportunities in the country.
The real estate sector, supported by a series of policy-driven decisions, is expected to stage a turnaround next year. In addition to the draft law, 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.
Leading property developer SAK Holding Group recently said in a report that the government’s focus on the completion of the major development projects, especially infrastructure projects in the health, education and transportation sectors and projects related to the World Cup 2022, will attract the continued flow of real estate liquidity.
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. Qatar ranks first as the world’s best corporate destination in terms of taxes and levies, the report said.
Barwa Real Estate Company also signed a contract with INSHA Company to construct a new labour city having 3,170 residential houses at Salwa Road with the contract value of QR1,295m. All in all, Qatar’s property market, remains a safe haven for investors. The wise policies of the government will lead to more real estate transactions, mainly residential properties, which are expected to increase in the near future.