Qatars ambitious economic policies have sustained double-digit growth rates while much of the world has struggled over the past few years. But the gas-rich Gulf state may now be overreaching, as a building boom threatens a glut in its property market.

State-owned property developers Barwa Real Estate and Qatari Diar are set to spend QR100bn $27.5bn over the five years to 2016 on commercial and residential projects, according to a national development strategy unveiled last March for the country of 1.7 million people.

Qatar may now be overreaching, as a building boom threatens a glut in its property market.
Qatar building boom threatens a glut in its property market.

The government is backing that with promised public investment worth $95bn during the period, over $65bn of which is expected to be on infrastructure.

Construction frenzy has led to a jump in lending to the real estate sector

But much of the property market is weak, with rents and prices falling. Lending into such a weak market could hurt banks balance sheets while worsening the real estate slump by increasing supply of new homes and offices.

via Qatar building boom risks property slump – Real Estate –

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like

Invest Smart in Thailand and make sure you get extra Rental Yields

Ashton Hawks proudly brings you to The Origin Kathu Patong, located in the heart of the thriving district Kathu. The Origin Kathu Patong is the latest freehold low-rise luxurious condos, offering you a high standard of luxury living in the tropical paradise. 

Thai Residential market sluggish on the back of higher interest rates and stricter loans

Unfavourable factors include higher interest rates, increases in expenses related to home purchase, and stricter criteria for approving loans.

Foreign buyers are back in Thailand’s property market

Foreign buyers typically have higher budgets than Thai buyers, preferring to live in main business districts and along the banks of the Chao Phraya River.