Qatar will witness price corrections in residential real estate after the World Cup

A representative from a leading real estate business indicated yesterday that Qatar's residential real estate market will see price adjustments after the World Cup.

Hani Dabash, Deputy Group CEO of Esdan Holding Group, responded to a question from The Peninsula during yesterday's press conference to announce the Al Janoub Gardens project, stating that Qatar's real estate market will follow the same model as other countries that have already hosted the FIFA World Cup.

"The real estate market in Qatar is very extensive, very active and dynamic. We expect a normal (price) drop after the World Cup. Although it is not particularly dynamic, there will be a correction. The government's ambitions are very ambitious, the market is very strong here, these initiatives are going ahead as planned, and the survival of this market "We are also demonstrating strength. And I think it will stay with the government programs and will do admirably in the medium to long term," Dabash added.

Cushman & Wakefield reports that residential rents in Qatar are on the rise ahead of the 2022 FIFA World Cup Qatar. Residential real estate saw a significant increase in rents in the second quarter. According to the survey, some rents have increased by more than 30% year-on-year as a result of an increase in short-term requests ahead of the FIFA World Cup.

"Demand and supply determine rental prices," Dabash continued. The Qatari real estate market is very strong and we think it will balance out. Ezdan and other businesses (which are being monitored) have strong occupancy, so they price their units accordingly. Ezdan sees our tenants as partners in business.

It is worth noting that earlier this year, Esdan stated its intention to open a series of fully contemporary residential complexes, adding over 4,000 residential units, to meet the needs of the market during Qatar's hosting of the FIFA World Cup.

According to Dabash, around 1,700 units have already been delivered from over 7 projects and these projects have already been leased out, mostly to foreign and domestic businesses involved in World Cup ventures.