Rent increase force businesses to shut down
An increase in the rents of commercial properties by landlords has pushed many small businesses out of business and has hit potential investors.
Abdullah Salim, who was recently compelled to close his restaurant in Al Sadd area due to a 200 percent hike in rents, said: “Increasing the rents has become the hobby of some landlords. The owner of my shop raised the rent to QR30,000 from QR10,000 per month, in one go. Despite all my efforts, nothing worked and finally I had to quit the business.”
“Some greedy landlords, who want to get more and more, are just exploiting the situation of short supply and high demand,” said a citizen, Ahmad Al Sada.
In some areas, small shops of the size of 4x4 metres, whose rents were ranging from QR5,000 to QR7,000, have now jumped to QR20,000 and QR30,000, per month.
A cross-section of people called for urgent market intervention by the authorities to check the unprecedented increase in rentals, which is hampering the growth of existing businesses and discouraging fresh investments. People are feeling the pinch of rising rentals both for commercial and residential units, they said.
An Asian expatriate who runs a motor garage at Barwa Village says: “Due to high rents and low turnout of customers, things are becoming increasingly difficult for us. During winter, there are several days when we do not get even a single customer, but ends up paying huge rents.”
According to Abdullah Jubara Al Rumaihi, the CEO of Waseef, the property maintenance arm of Barwa Real Estate Company, the combined value of sales of real estate properties in the first quarter of 2014 reached QR13.17bn, witnessing a a sharp increase of 67 percent compared to QR8.84bn in the first quarter of 2013.
In last March alone, the value of total sales reached QR5.53bn against QR2.91bn in March 2013.
Going by the latest official data, rentals (coupled with fuel and energy prices) have pushed up living costs 5.7 percent over the past one year.
Rentals have grown steadily over the last several months. In March 2014 alone, rents increased by 0.6 percent compared to February 2014, according to the Ministry of Development Planning and Statistics. Citing the country’s projected population growth and the spiralling land value, market experts warn the rent-induced inflation is set to go up in the coming months, pushing up living expenses further.
The BAD impact is uncontrollable raise in "Cost of Living", Unstable economy which must be controlled TODAY ,NOT LATER..People have to plan well before they move to Qatar FOR WORK due to very high rent....Land lord can throw you out from business asking for more rent and no regulations for rental hike.
Govt. has to set a new regulations to stablise the economy
There are no control on the rental hike.Govt is least bothered on this.But they may not have realized the impact which is raising the "Cost of Living" in Qatar unimaginably.
This is the hot topic among the expatriates.I
Is it aware and let it go by Govt or planning for new regulations?.
Lots of business have been closed with loss and bankrupt only due to the unbearable rent.
The sad thing is that there are local landlords who read newspaper stories about how other local landlords have increased rent by 200% and they think to themselves "what a good idea, I should do that too".
If your income came not from working, but from cashing checks each month, wouldn't you do the same thing too?
Bottom line Gents, the economy in Qatar is imbalanced, local Landlords aka Policy makers aka Big Shots, are purposely controlling the Real Estate market for their own benefit which include outing of any competition, manipulating the market, and at the end winning major contracts easily. So the only way to get successful in your business, work for the big shots (they won't let you even work with them) and Good Luck! You will really need it.
Best Business: Take 2-3 villas on rent. Put as many partitions as you can. Rent out each portion that it gives you almost double the amount you need to pay the landlord. Sit in peace in one of those partitions yourself and enjoy your time.
It is tough nut to running a small business in Qatar. Minimum we have to pay 6000 QR for a small office,also may not be getting these type offices anywhere in Qatar.
You know, what is the result of rent hike. It increase the price of every products and services in the market. So, everyone need to pay more even Qatari people also.
This rent is going to the pocket of real estate mafia only. Qatar government is not getting any share from this.
Also, Qatar will loos talented , high skilled, high genius employees. They will migrate to another country. So, it will effect entire Qatar project and development.
Also, so many small industries, shops don't like to invest in the country. So, All people loos the availability of services and facilities all over the country.
At present the shop rent is 4 times more than current business strategy or opportunity.
So, The Govt must to do anything....
And yea, im waiting for some one to say, IF YOU DONT LIKE IT, LEAVE.
No matter how many articles you ppl publish with regards to High Rentals, Its not gonna make any difference, Officials either have no control over it or they just dont wanna take any action on this. Reality is, Ppl almost pay 40% of the salary as rent.
GVT intervention is required more tham ever
take it or leave it?
Imagine a 6x6mtr room which was divided into more rooms and yet people still agree to rent it even if it is way way overpriced. So, who's to blame?
I am totally agree with this article, the renting charge is unbelieveable now a days it should decrease, otherwise the entrepreneur will fly from Doha.