TRIBUNE NEWS NETWORK

DOHA ALPEN Capital has an optimistic outlook on the Qatari residential as well as commercial office construction market on the back of healthy growth in population and increasing economic activity.

The residential construction and real estate market of Qatar witnessed a period of high growth between 2001 and 2009, mainly on account of high natural gas production and increased public infrastructure spending which led to a robust economic growth. However, the global economic slowdown materially affected the residential construction market of Qatar in 2010 and 2011, mainly due to a contraction in demand. This led to a sharp decline in property prices in Qatar.

Qatar witnessed increase in rentals before the economic recession with changes in ownership law allowing foreigners to buy property in designated areas of Qatar. The increase in rentals resulted in yields of around 12 percent in 2008.

However, the global economic slowdown materially affected the residential construction market of Qatar in 2010 and 2011, mainly due to a contraction in demand.

The recession had a profound effect on selling price and rentals. This led to a decline in average rental yields across Qatar as a fall in rentals was more when compared to a fall in property prices. Currently, gross rental yields in Qatar stands at around 10 percent.

The residential construction and real estate market in Qatar has showed signs of stabilising, particularly post announcement of the FIFA World Cup 2022.

The Qatar market is faced with an oversupply situation which has led to a decline in prices of apartments and villas in recent past. “We expect that average selling prices of the residential units will bottom out in the near term, which will result in increasing number of sales transactions across the region,” Alpen Capital said.

Alpen Capital has an optimistic outlook on the Qatari residential market on the back of healthy growth in population and increasing economic activity. The population of Qatar, according to IMF’s estimates, is expected to grow at a CAGR of 4.7 percent between 2011 and 2016 due to an influx of expatriates.

This is likely to translate into higher demand for properties between 2012 and 2016. Massive construction plans in preparation for the FIFA 2022 World Cup is also likely to fuel demand for the residential market in Qatar.

Alpen Capital also anticipates no further fall in residential unit prices in the short as well as long-term. Further, it is expected that the rental rates of residential properties will increase in 2012, resulting in increase in rental yields.

After significant activity in the last decade, the Qatari commercial office construction market is also facing a problem of oversupply.

Substantial increase in stock and subdued demand for office space has put pressure on property prices as well as rentals in key business locations of Qatar.

Average office prices in the fourth quarter of 2011 remained stable at QR14,000 per square meter as compared to third quarter of 2011. However, new supplies in 2012 are expected to lead to a readjustment in prices over the medium-term.

Demand for new houses to rise in Qatar, says Alpen TRIBUNE NEWS NETWORK DOHA THE Qatari Businessmen Association (QBA) organised a meeting with Palestine Stock Exchange CEO Ahmed Aweidah and the accompanying delegation at QBA’s office, in Doha on Monday.

The meeting was attended by QBA members Salah al Jaidah, Nabil Abu Issa, Sarah Abdallah, QBA Deputy General Manager Abdul Salam Abu Issa, Salam International’s Adnan Staitieh, Qatar Exchange CEO Andrew Went and representatives from Qatar National Bank, Commercial Bank and Al Ahli Bank.

Speaking about Palestine Exchange, Ahmed Aweidah said, “The exchange strives to provide trading market characterised by equity, transparency, and competence, serving and maintaining the interest of investors.” PEX seeks to be a model for the Arab and regional financial markets through service excellence, and the ability to create ideal and attractive investment opportunities, commitment to the rules of corporate governance, and weaving constructive relations with the Arab, regional and global markets. It will also focus on use of the latest technology, which is portrayed through the volume of online trade that constitutes 20 percent of the total trade.

The number of companies listed on Palestine Exchange has reached 46 with a market capitalisation of about $ 2.8 billion, spread over five sectors: banking and financial services, insurance, investment, industry, and services.

QBA, Palestine bourse discuss trade ties Wednesday, March 28, 2012 BOTTOM LINE www.qatar-tribune.com 27 Palestine Stock Exchange and QBA officials, in Doha, on Monday.

The Qatar market is faced with an oversupply situation which has led to a decline in prices of apartments and villas in recent past.