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.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

TAT strengthens presence in the Middle East market

The Tourism Authority of Thailand (TAT) is strengthening Thailand’s presence as the preferred tourist destination among Middle East travellers to drive interest in returning to Thailand in the post COVID-19 situation.

Thai property gains foreign popularity

Thailand’s real estate market has recently been characterised by an oversupply of flats. There were over 90 thousand unsold units of condominiums in the Bangkok Metropolitan Region (BMR) in Thailand as of 2020.

Thailand and Saudi Arabia Sign Memorandum on Thai Labor

Thailand is also seeking assistance from Saudi Arabia to ensure employer and employee rights are respected, while enforcing regulations to ensure fair payments, welfare, privileges and cooperation over human trafficking issues.