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[lollaerd]

Expert sees further fall in rents this year



Source ::: THE PENINSULA
DOHA: House rents are likely to ease further this year but a sudden spurt is possible later this year due to a likely influx of half-a-million foreign workers, says a real estate expert.

Due to the expected launch of a number of new projects this year, the population of the country is expected to rise by 500,000, said Falah Matar, general manager of a prominent real estate company.

Asked as to why so many ready-to-occupy buildings were lying vacant all over Doha with boards screaming �For Rent�, he said the owners of these apartment buildings and villa complexes were waiting for a government department or a prestigious private concern to take them on rent wholesale to house their employees.

According to Matar, the trend is changing with an increasing number of landlords preferring to give away their properties directly to companies or government ministries or departments on a wholesale basis.

�The owners are avoiding agents due to a number of problems they had with them (middlemen) in the recent past,� said Matar.

One of the advantages of giving away a whole property to a credible organisation to accommodate its employees is that rents are paid at least three months in advance and there are no hassles of collecting rents from individual tenants.

�Not all these ready-to-occupy building you see are complete. Finishing touches are being given to a vast majority of them, yet the owners have put up boards outside saying they are for rent,� said Matar.

He, however, said that waiting for a company or government agency to take an apartment building on rent is not a wise move on the part of the owners.

�You can give individual apartments on rent to tenants you can trust�to those who are in good jobs, for instance,� he said.

Waiting with uncertainty means that the owner is losing money.

�It is prudent to give away individual apartments to tenants. It makes business sense,� he said.

[lollaerd]

Rents fixed after thorough study: Barwa


Source ::: THE PENINSULA
DOHA: Barwa Real Estate Company has reacted to complaints about the allegedly high prices of its housing and commercial units in the Barwa Village in Wakrah currently under construction.

The company said that the prices were �competitive� and fixed after a thorough study of the real estate market in the country.

�These prices were determined after conducting a thorough and comprehensive study along with comparisons to other similar projects, taking into account the best features and specifications that characterize Barwa Village,� said Barwa Village CEO, Khalid Al Hitmi in statement issued yesterday.

He said reports by �some sources� that Barwa had raised its prices were not true. Barwa Village applies competitive prices in comparison to the local real estate market. Additionally, these prices have been previously announced with no further increase since.

�While some properties that date decades back in certain old areas might have been less expensive, that was a reflection of their lack of amenities � amenities that Barwa feels communities must have in order to thrive,� added Al Hitmi.

[lollaerd]

A lot of people are thinking of relocating to Wakra. It's not a bad little town and close to projects and schools as well as the SEC around the airport.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=333747&version=1&template_id=57&parent_id=56

[lollaerd]

Like many others who rent, I am going t move to a bigger, cheaper place although my housing allowance is the same. There are rental bargains to be had.

Property glut benefits tenants


With a large number of new residential properties still waiting for occupants and another round of rental decreases expected, few tenants are showing interest in long-term contracts of two years or more.
Inquiries made by Gulf Times with real estate firms revealed that potential tenants are not only declining contracts of two years or more from landlords but are also succeeding in reducing rents as the market have become increasingly �tenant-friendly� over the last few months.

In cases where landlords or real estate companies representing them have refused to reduce the rents, tenants have shown little interest in renewing their leases.

�Thus, they (tenants) could bring real estate houses or landlords themselves to a point where each could negotiate for a reduction in rent,� said a manager of a Western expatriate-run real estate company.
�Since a large number of residential units are available in many areas of the city, most tenants know it too well that real estate firms would ultimately �fall in line� owing to lack of demand,� he said.

Most tenants these days only want a one-year contract with their landlords, added the manager. Until a couple of years ago, Doha was very much a sellers� market with building owners dictating terms.�However, things are different these days with a large number of properties still vacant for lack of demand from the targeted sections of clientele,� the real estate manager said.

With �horror� stories of a number of real estate agents getting their fingers �burnt� still circulating in the communities, patient potential tenants could make good bargains with property owners.
For instance, at a Najma residential apartment complex, tenants of �up-market� properties, now paying QR8,000 or more for a three-bed room unit, have succeeded in getting the real estate firm to reduce rents by nearly 25% on the threat of the tenants quitting their flats.
�Even after then, some of the tenants have vacated and moved to other areas as they have succeeded in getting better properties at lesser rates,� said one of the tenants who has done exactly that.

It is reported that more tenants at the building are now planning to vacate after the expiry of their contracts as cheaper but newer properties are available very much within the city limits.
In one case, after many tenants of a Musherib flat complex vacated, the property owners were forced to reduce the rents by almost 40%.
However, even at the new rates there were few takers.

However, things are far from good for commercial property seekers even at this juncture.�There is no doubt that a large number of new properties are available. Still there is no sign of commercial rents falling in the near future,� said a representative of a major home appliances distributor.
The official said that although many new properties coming up all over Doha and suburbs in the last few years, commercial rents are still rising.
�What matters is certainly not the supply of new commercial units. It is rather the availability of suitable premises for carrying out operations in a particular area,� he said.�Even the properties built with the promise of providing rooms to entrepreneurs at affordable rates are certainly not within the reach of ordinary traders,� lamented a retailer.

[lollaerd]

LAW: Role of rent law in balancing property market Source ::: The Peninsula
Doha: The new Rent Law was a reaction to the economic and social conditions that prevailed in the country before its issuance.
The economic and social conditions that prevailed before the issuance of rent law: - There was a crisis in the real estate market before 2007 due to high rents which was the result of an increase in the recruitment of foreigners to work in multiple projects in Qatar in preparations for hosting Asiad Games championship.

The crisis reached its peak in 2007 affecting the lives of nationals and expatriates alike, and the private and government sectors, unbalancing the real estate market, raising demand and reducing supply, affecting relations between tenants and landlords, and raising rent value by an unprecedented rate.

The crisis also led to a negative phenomenon. The workers and employees sent their families back home, housing units were divided to accommodate more tenants, extensions were built to buildings, portacabins were rented, and people left Doha city to shift to the outskirts and neighboring towns.

Fake real estate agents cheated tenants and landowners, prices of building materials rose and contracting and real estate-related activities flourished. Under these circumstances, the Emir H H Sheikh Hamad bin Khalifa Al Thani granted government employees a housing allowance amounting to 40pc of their salary value to meet these expenses. Private firms raised this allowance by 50 percent of its total value and granted workers a living allowance. But despite these measures the real estate crisis prevailed making it necessary to issue the Real Estate Rent Law (No.) 4/2008 from 15, 2, 2008. The law contains 27 articles and stipulates the following provisional articles that expire on 14. 2. 2010:

1 Article No (10) on ban of rent increase: -

The lessor is not allowed to raise the rent value of valid contracts or contracts to be signed from the validity date of this law, only in accordance with regulations, terms, and rates approved by the Cabinet according to the minister�s proposal.

2.Article No. (27) on Lease Term Extension:-

With exception of Article No (15) provisions, existing rent contracts, according to validity of this law, should be extended to a term of two years starting from 15. 2. 2008 to 14. 2. 2010, unless the contract includes a longer term or the tenant wishes not to renew the contract, provided that he occupies the leased property.

In addition to Rent Law, the government encouraged different companies to invest in real estate sector. This led to the introduction of additional housing units and in rebalancing demand and supply in the market. Residential housing properties benefited from these steps, but properties allocated for commercial and industrial purposes still suffer from shortage of supplies -- more demand, and abnormally high rents. This may lead to extend the implementation of Article No. (27) provisions of this law on the extension of rent contracts for two years.

Also it can lead to extend Article No. (10) banning the increase of rents except according to Cabinet Resolution No. 9/2008 issued in 2. 3. 2008 on control, terms, and rates of lease value increase. This rents should be included in the contracts subjected to this law provisions. The expected step may allow the two parties organising demand and supply law, if the real estate crisis experiences breakthrough after the accomplishment of giant commercial ventures like Musheirib and West Bay Towers projects.


http://www.thepeninsulaqatar.com/Display_news.asp?section=Local_News&subsection=Qatar+News&month=January2010&file=Local_News2010012115916.xml

[lollaerd]

Expert: Real estate fall a readjustment


Al-Ejli at a press conference yesterday
The global financial crisis did not trigger the decline in prices of the Qatari real estate, but the fall was a �readjustment� taking place after an unhealthy increase of 144 % in residential and commercial rents between 2005 and 2008, DTZ Research director Edd Brooks said yesterday.
DTZ is a leading international real estate adviser.
Speaking to Gulf Times on the sidelines of a report presentation on the Qatari real estate market, he said that the readjustment has occurred, with the financial crisis or not, simply because the increase in commercial and residential rents between 2005 and 2008 by 144% was not sustainable and became unaffordable.
With more residential and commercial supply coming on, he said, as well as the introduction of the new rental committee, in 2007, restricting the rent of ministries and government bodies from QR250 to 150, there has been a rebouncing of demand and supply.
However, things have stabilised and the growing demand of new companies in Qatar, over the next few years, is to urge a fairly stable price increase, he said. �Maybe 3 or 4% a year, but nothing like it was.�
Speaking about the locations� newly surged impact on prices, the expert pointed out to the emergence of a secondary market. �There is now a differentiation between prime property such as the offices in the Diplomatic Area or apartments in the West Bay and the secondary areas such as apartments in Al-Sad or offices in C and D Ring roads,� he said, noting that before 2005 the real estate had standard prices depending only on space.
Brooks said that the government intervention was effective, as inflation was very much influenced by rents and the cost of living. �We probably have in the West Bay a vacancy rate of 15-16%, which is healthy, compared to 5 %, 3 years ago which was not.�
Highlighting other readjustment aspects, Brooks said that unhappy owners, being used to a rapidly rising market, have became nervous about granting long leases.
�Few years ago they only rented short leases to remain able to increase rents and that is not healthy, whereas now, they are looking to longer term and they consider signing five and 10 year leases, which is healthy,� he stated.
He noted that the Qatari market was maturing very quickly, whereas having been opened up since 2004, it was still very immature. �Although it is not very transparent yet, it is more transparent now than it was three years ago.�
Speaking to reporters, DTZ Research executive business manager Nusair al-Ejli said that the Qatari economy was not affected by the financial crisis, because rapid rise was not a priority to its market.
The real estate booming was not strong compared with Dubai, he said, but thoroughly studied, which has helped Qatar not to be affected.
Speaking on the real estates� decline in prices, al-Ejli said that there was currently more than 150,000sq m ready for rent in Qatar, with few tenants.
He said that most of the West Bay tenants are ministries and government institutions, in addition to oil and gas companies and a minority of foreign companies.
�Owners are reluctant, with an abundance of office spaces, for lease to the government, as it is not the ideal tenant, in addition to the QR150 per sq m limit on rent price,� he said, noting that government, however, had the advantage of being a long-term and trusted tenant.
On the other side, he said, oil companies were preferred by owners, for their ability to pay high rents. �They also accept the terms of the owner, in terms of maintenance, if the specifications were met.�
However, most energy companies have land in Energy City and they take into account that they will be forced by the government to shift to that location.
Al-Ejli said that the only part of real estate market affected by the financial crisis, was when foreign companies were forced not to expand or reduce leased space, by their headquarters. �The tenants number has been reduced due to that and the highest rent price is of Tornado Tower, which is QR250 per sq m in addition to QR30 maintenance fees,� he said, noting that prices of rents in the West Bay towers varied, currently between QR200, 160, 150 and 120.
Explaining the reasons why the Tornado Tower rents were the highest, he said that it solved two of the main problems of the West Bay - parking spaces and lack of elevators in towers.
Al-Ejli further said that residential properties were not much affected by the price decline. �However, fancy housing was affected.�
After the introduction of free three months offer by one major real estate player, he noted, all new residential offers were broken.
Speaking about the Qatari economy, al-Ejli cited Dubai as an example, saying that a large oil company had withdrawn the last of its staff and relocated in Qatar, after investors lost confidence in Dubai.
He explained that such companies come to Qatar for no reason other than the support of government to the economy and state control of the stock market and real estate.
�When the stock market weakened in Qatar, the government stepped in and injected more cash and another $15bn from the central bank in the real estate market, as well as the purchase of bank portfolios,� he said, adding, �This does not happen everyday.�
DTZ Research�s report cited that despite the miserable economic conditions in much of the developed world, Qatar has enjoyed a growth rate of 7-9% for 2009. It continued to be the best performing economy in the Gulf region due to the increase in natural gas production, public spending and influx of people and capital.
The population of Qatar has doubled to 1.7mn in just five years while inflation, which averaged 11.3% yearly during 2004-08 has been subdued.
The report further stated that the prime rental rates have decreased by 20-30% for offices during 2009 in response to the increased stock and the effects of the global slowdown. This is to be considered a positive development as office rentals in the country were considered quite high. The total office stock stood at the end of 2009 at about 3.2mn sq m of which 50% is considered Grade A. Most of the latter category is found in the Diplomatic Area in addition to Grand Hamad Street, Al Sadd and along Salwa, C & D Ring roads. About 17 highrise office towers are currently under construction which will add another 450 000sq m to the total office stock.

[lollaerd]

Rentals in Qatar continue downward spiral: report

Rental levels in Qatar�s residential leasing market continued to decrease overall in the first quarter of 2010, says leading real estate services firm Asteco in its latest report.Apartment rental rates at Lagoon Plaza and Al Sadd experienced the greatest declines, up to 11%, while four and five-bedroom villas in Al Waab and five-bedroom villas in Al Khraytiyat were also affected, said Asteco�s first quarter report on the Qatar residential and commercial property market yesterday.�Encouragingly, however, there were a number of residential locations and asset classes where the decrease in rental levels appears to have stabilised,� the report said.�Al Muntazah witnessed only a 1.5% decrease in the last three months, while Bin Mahmoud and West Bay Lagoon saw no declines.�
Generally, studio and one-bedroom apartments across the market witnessed minimal sale price movements. There have been no noticeable price changes in residential unit sales for both the primary and secondary sales market on The Pearl Qatar. The office market continued to record decreases in rental rates.According to Asteco, the minimum monthly rental seen for studio apartments is QR3,000, one bed room (QR3,500), two bed room (QR5,000), three bedroom (QR6,000/8000) and villas QR9000 (4-bedroom) and QR10,000 (5-bedroom).Jed Wolfe, Asteco associate director, (Regional - Saudi Arabia, Qatar, Bahrain) said: �As rental rates drop, activity in the leasing market continues with tenants looking for increased value for money and better locations. We are witnessing a �flight to quality�.

�Properties that are professionally managed, well maintained and in good locations continue to attract strong demand. Landlords will need to be vigilant as to the type of property they want to lease as more options become available in the market.�
Now that some banks have begun to increase their loan-to-value ratios coupled with the reduction in sale prices, present market conditions offer purchasers real value opportunities. In the short- to medium-term, the Qatar market will see a greater diversification in pricing levels in both leasing and sales as the market progresses to the next stage of maturity.
Looking at offices, the Asteco report says there is an estimated 3.2mn sq m of office space in Qatar, 50% of which is in Doha�s premier office location � the Diplomatic District.In September 2009, the Urban Planning Development Authority barred the use of residential villas as commercial office space. Asteco expects, therefore, that a large number of businesses and companies will be forced to relocate into commercial districts, which could result in a slowdown in the decrease of rental rates towards the end of the year.
Due to the fact that a large amount of office space is coming to the market, particularly in the Diplomatic District, it is likely that office rental rates will decrease further. However, an increase in infrastructure projects, along with major commercial and industrial projects, is set to commence in the next 12 months, which will increase demand from both local and international companies and help to facilitate the stabilisation of office rents.

Examining the leasing residential market overall, the report says Qatar has seen a slight drop in rental prices compared with the previous quarter. With an increased supply of villas and, in particular, apartments entering the market, which are ready for occupation this has resulted in a marginal reduction in rental rates in certain parts of the capital.
Other areas such as Umm Gwalina, Al Ghanem, Al Hitmi, Mansoura, Bin Mahmoud, Muntazah and Al Sadd are expected to have approximately 5,000 residential apartments entering the market over the next 18 to 24 months. This will undoubtedly affect the market and is likely to drive rental prices down further in due course, Asteco said.In the next quarter, the rental market is likely to dip further before it stabilises. However, the market will continue to be active due to the expansion of oil and gas companies and other government organisations, which will have a positive impact on the leasing market

[lollaerd]

Rents have stabilized as there are now more units on the market and not enough renters. The new trend is for service apartments where you have recreational/restaurant facilities. Some of these places in Dafna are a good deal.

[wilberforce]

http://www.justlanded.com/english/Qatar

Try this website.

[wilberforce]

This is another useful website.

http://www.qatar.alloexpat.com/qatar_information/housing_in_qatar.php

[wilberforce]

http://www.qatarliving.com/

The best website on Qatar. This is worth joining.

[lollaerd]

These apartments etc were built for low income residents of Qatar (including nationals). They were stunned a month or so again when they were told the rents were going up, after years of being told that Barwa would continue to keep low rents. The tenants protested and for once they were listened to. It's ridiculous to raise the rents when there are now lots of cheap appartments all over the place. Builders went crazy constructing cheap small places which are mainly empty. There is an incredible glut of apartments but the low income people still can't afford them.

Power to the people!
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=405155&version=1&template_id=36&parent_id=16

[paperback]

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=408917&version=1&template_id=57&parent_id=56

[paperback]

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=410594&version=1&template_id=36&parent_id=16

[WantToKnow]

distance may not equal how long it takes to get somewhere. traffic and construction can be make a big difference.