Qatar real estate prices down 6.2pc
Doha, November 24, 2013
Real estate prices in Qatar dropped 6.2 percent from May to September this year, according to a Qatar National Bank (QNB) report.
The falling real estate prices will slow down the rate of increase in rent prices, the report was quoted as saying by Arab News.
QNB Group has analyzed data purely on land transactions in Qatar, based on weekly statistics published by the Ministry of Justice (MoJ), which indicates that the cost of land has fallen in the last five months. This is likely to ease upward pressures on rental inflation, enhancing the competitiveness of the Qatari economy and relieving concerns that the real estate sector is again experiencing an asset-price bubble like in 2007-08, it said.
The QCB index includes prices for land, villas and residential buildings. According to QNB Group, the fundamental driver for real estate prices is the cost of land. If land prices rise, the price for villas, apartments and other real estate prices are also likely to go up, it said.