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http://www.thepeninsulaqatar.com/Display_news.asp?section=Local_News&subsection=Qatar+News&month=January2010&file=Local_News2010010244114.xml

[lollaerd]

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=335453&version=1&template_id=57&parent_id=56

[lollaerd]

Some places are now renting more cheaply than the Barwa Project. It is a rip off for the small entrepreneurs that used to be in Karaba Street (now Dohaland). These guys used to pay about 1,000 - 3,000 per month for their shop rental. Now they have to pay 10,000 for an out of the way place. Most of them have lost their customers as who wants to go to Wakra to shop??


Majority unhappy with Barwa rents

The Peninsula

Barwa Village in Al Wakra.

DOHA: A majority of the participants in an online survey conducted by Al Sharq daily said that they were not happy with the rentals for the commercial and residential properties in the Barwa Village in Al Wakra that is under construction.

Seventy percent of the respondents said the rentals were high while 17 percent said they were satisfied with the existing prices. Thirteen percent didn�t express any opinion. The survey was conducted on the back of complaints from the public that the rents were not reasonable. The maximum rents for commercial properties have been fixed at QR10,000 while the residential properties have been priced QR4,500 at the most.

Barwa recently had come out with a statement saying that the rents had been fixed after a through study of the market. The company justified the existing prices on the grounds that the facilities offered at the properties were also of high quality. Reacting to the survey, several nationals and residents hoped that the company would positively respond to the public demand. �The rents can not considered high when compared to the facilities offered. However, we hope they would be reduced in response to requests from the people,� said Sheikha Al Jefairi, the lone woman member of the Central Municipal Council.

Yakoub Ibrahim, a businessman said the rents for the commercial properties were on par with the market prices. �The rents can be justified based on the existing prices in the market. However, people are expecting lower prices from Barwa, which had initiated several ideal projects targeting the low and middle income groups in the country,� he said. Sharing similar views, Mohammed Al Ali said expectations among the public would be high about a state-backed company like Barwa.

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Mid-class housing shortfall forecast

Qatar�s real estate sector is expected to see a short supply in mid-class residential apartments but rents for commercial buildings may stagnate at current levels, according to Global Investment House.The short supply of mid-class residential apartments was more due to the concentration of projects in the upper class, where rentals and prices are expected to fall, Global said in its report.
The market for mid-class residential apartments is expected to remain �stable,� the Global report added. �Price and rentals will maintain their levels for the short to medium term with a potential growth in the longer term,� it said. Growth was directly related to population demographics and increased demand from the young population entering the job market, it added.

Expecting a downward trend in upper class apartments and villas, the Global report pointed out that the ongoing delivery of new projects and units would lead to increasing supply at a higher rate than increased demand.�As a result, rentals might decline or stabilise at current levels for the short to medium term,� it said, adding this would depend to a great extent on the economic performance and business activity.

Increased business activity would be translated into new employment and thus relocation in such new high-class residential areas, it pointed out.

�Currently, the Qatari real estate sector is showing signs of stablisation and recovery is expected by the second half of 2010,� it said.

On the outlook for office space, Global said the sector would remain stable as rentals are expected to stagnate at current levels in the short term, especially in the new business district.However, rentals in older business district might witness further declines, up to 10% in the short term, due to the shifting or relocation of businesses to new prime locations.

�Looking forward, the delivery of new supply, if not matched with increased demand, will exert more downward pressure on rentals in both segments during 2010 and 2011,� it said.However, Global said, the optimistic scenario of growing business activity might mean sustaining rental levels for office space in prime locations.

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Rents may fall further as supply rises: study


Rents may continue to fall in Qatar due to an excess supply in apartments, according to a study.�We expect apartment rentals to suffer from further reductions as the levels of supply continue to increase as new developments come to the market at the Pearl and in the Diplomatic District,� said a study by DTZ, one of the biggest global real estate advisers.The average rentals for both villas and apartments in Doha have fallen by 20%-30% since the fourth quarter of 2008 in response to supply outstripping demand, it said.

Population growth has slowed over 2009 and as a result the level of new demand for residential accommodation has reduced considerably in comparison to the previous three years, during which the population doubled, with growth averaging 30% per annum, the study said.
Historically the market has suffered from an under supply with rapidly rising demand, resulting in strong rental inflation in excess of 25% per annum, the DTZ said adding the market dynamic is now shifting as reduced demand coincided with an increase in supply, thereby leading to rental deflation over the last nine months. In parallel with the reduced demand, the level of supply in housing stock is increasing at a faster rate as a number of developments launched in response to the housing shortage are now reaching completion, according to the study.
There is an increasing trend of companies offering housing allowance to employees as part of their salary package. In response to this, landlords of residential developments with multiple units are adapting their leasing strategy and making units available to individuals whereas in the past they tended to seek corporate lettings.�Companies leasing housing directly are seeking to reduce residential costs and their preference is for smaller, efficient housing solutions that offer value for money. We expect this to lead to development of smaller average units sizes in the future,� the study said.
The focus for new residential development in the past has been on the three prime residential districts of Doha - the Diplomatic District, West Bay and Al Waab.

DTZ estimates that there are currently 5,600 residential apartments in the Diplomatic District with about 70% of the existing residential stocks consisting of two- and three-bedroom units.On the outlook towards freehold market, DTZ said there were signs of investor confidence returning this year, as reflected by some of the banks� promotions and advertisements regarding mortgage products.

[lollaerd]

A year ago some apartments were going for 27,000 QR and up!! My friends rent a place at 22,000QR the new rental is 14,000QR!!!

Residential rental market remains flat
Qatar�s residential rental market remained relatively flat over the fourth quarter of 2009 but witnessed a marginal increase in interest from tenants assessing the market towards the end of the quarter, according to Asteco, a major real estate services firm.�The leasing market is expected to see continued activity in 2010 as real estate projects reach completion and the oil, gas, infrastructure and logistics industries continue to attract foreign inward investment,� said Asteco in its report on the Qatar property market for the fourth quarter of 2009 released yesterday.
In Doha�s less established areas, monthly rental levels for one-bedroom apartments ranged from QR3,500 up to QR4,000, two-bedroom from QR5,000 to QR7,000, and three-bedroom ranged from QR6,000 to QR8,000 per month, the report said. Apartments in the prime areas of West Bay and Lagoon Plaza ranged from QR7,500 to QR12,000 for one-bedroom, QR11,000 to QR18,000 for two-bedroom, and QR15,000 to QR20,000 for three-bedroom.�The more mature villa market in this area continued to outperform the less established apartment market, with three-bedroom villas achieving 10 to 20% higher rental levels than three-bedroom apartments,� Asteco added. �Indeed, villa vacancy rates in this area are currently estimated at 4.5%.�

Meanwhile, apartment sales continue to show a discrepancy between the primary and the secondary markets, highlighting an increase in the number of existing owners wishing to liquidate their investments whilst still at a break even point, said the report.Secondary sellers have a competitive advantage over developers who are locked into high construction costs where contracts were agreed at the peak of the market. Asteco�s research demonstrated a current discount on secondary stock of around 25%, which broadly reflects early 2008 pricing.�There has been limited activity in the off-plan sales market in the freehold and long leasehold zones, which are available to expatriates, and marginal activity within the greater Doha market, available to local and GCC nationals,� the report added.The Pearl Qatar remained the premier project where 1,200 apartments are scheduled for delivery in the first quarter of this year, which is expected to provide long-awaited evidence to benchmark the Pearl within the wider property market.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=338313&version=1&template_id=36&parent_id=16

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[wilberforce]

Further fall seen in rental rates
Residential rental rates in Doha have fallen as much as 45% from their peak in 2008 and are likely to fall further due to oversupply, a report published yesterday said.

Rents in Doha fell by 20% to 30% last year after population growth slowed in the state due to the financial crisis, property consultant DTZ said in its report. �Average rental prices for luxury apartments have reduced further by 10% to 15% over the first quarter of the year with supply continuing to outstrip demand,� DTZ said. Average office rents have dived between 20% to 30% thanks to oversupply, Nick Witty, chief operating officer of DTZ�s Middle East operations, told Zawya Dow Jones on the sidelines of a real-estate conference in Doha.

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Barwa begins hand-over of apartments at Sailiya project

Originally slated for handover in July 2009, the 992-apartment complex at Sailiya is the second phase of the Barwa Masaken (Barwa Housing Programme) project. The first phase of the project, Barwa Masaken in Mesaimeer, was handed over to tenants in March 2009. The two projects together have around 2,000 apartments.
The Sailiya project had been marred by halting of work on occasions, with Barwa having to take legal recourse against the main contractor at one point. Barwa also ended up paying the dues the main contractor owed to sub-contractors, even though it had no obligation to do so.
The main contractor, Panceltica, became insolvent in July 2009.
�We promised the tenants that the delivery of apartments will be made in July, and by the grace of Allah, we were successful in carrying out our commitment,� Barwa Masaken general manager Khalifa al-Mohannadi told Gulf Times.
�Over the past couple of months, we have been giving final touches to the complex,� al-Mohannadi said.
Tenants are being invited to the premises, a 20km drive from Villaggio Mall, in batches, where they are given the keys to their apartments.
�This process will continue for a month. We have also announced to give one free month to each tenant,� al-Mohannadi said.
�As of today, we are inviting tenants of two zones, from a total of six,� al-Mohannadi added.
The Barwa Mesakan Al Sailiya has a total of 31 buildings with 17 designed for three-bedroom and 14 for two-bedroom units. The monthly rent is QR3,500 and QR3,000 respectively.
Amenities will include a nursery, a clubhouse, sport courts and a shopping complex.
�The process of awarding the tender for the shop has already been completed. We recognise the importance of having access to a grocery shop here, which will be opened very soon,� the official said.
The Al Sailiya buildings� maintenance, 24-hour security and other services will be provided by Waseef, the asset, property and facility provider on behalf of Barwa.
Al-Mohannadi said that there are �hundreds of people� in the waiting list for Mesaimeer and Al Sailiya apartments.
�Those interested can get more information on 4595550,� he said.
�We are also in studying for more projects under Barwa Mesakan brand,� al-Mohannadi added.

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Empty buildings all over the place. Lang Sols and similar outfits could rent better places nowadays and still make a profit but they prefer to go with the cheapie accomodation. Some of those apartments have no windows!