and without diverting the original post too much, the bigger issue is the economic slow down. As developers rush to complete projects to make sales and generate income to pay off loans, standards in construction fall further. The developers need that income as the credit sources are drying up. Doha will be one of the last places to feel the down turn but it is coming. Unfortunately this will lead to some projects stopping or being put on hold. New appartments will fall in price and existing rents will come down. However, the majority of people who rent those appartments or purchase ones where they are allowed to ie at the Pearl (none locals) will not have a job and will leave the country. The knock on effect will be landlords who are geared to a certain rent in order to pay their loans will resist this economic force and fight to increase rents. Then the cycle of greed from landlords and developers, married to a reducing consumer base ie less tennants, will exacerbate the situation. Inflation will increase leading to a possible devaluation of the Qatari Real and then you are on the road to a real economic meltdown. I do not believe in scaremongering but within the next three months you will see the bubble burst.
Also, the economy in Qatar relies so much on oil, gas and construction. There is no tourist industry or real service industry compared to other countries and as the wealth of the country does not trickle down to low income people. Those people cannot invest or start a business and employ people as their main goal is to send money back home. They cannot buy property and if they can afford a loan are reluctant to so because when they loose their job and have to return home they cannot leave the country before the debt is paid. In summary, the economic downturn coupled with the inertia of a wealth retention within the country leaves little room for manoeuvre. On the plus size the countries wealth is being used very wisely in building services shuch as hospitals, schools, universities etc. These are not speculative developments and although there are many things here that people criticize, what the goverment is doing in spending billions on their projects is exactly what should be done elsewhere and for that they should be applauded
and without diverting the original post too much, the bigger issue is the economic slow down. As developers rush to complete projects to make sales and generate income to pay off loans, standards in construction fall further. The developers need that income as the credit sources are drying up. Doha will be one of the last places to feel the down turn but it is coming. Unfortunately this will lead to some projects stopping or being put on hold. New appartments will fall in price and existing rents will come down. However, the majority of people who rent those appartments or purchase ones where they are allowed to ie at the Pearl (none locals) will not have a job and will leave the country. The knock on effect will be landlords who are geared to a certain rent in order to pay their loans will resist this economic force and fight to increase rents. Then the cycle of greed from landlords and developers, married to a reducing consumer base ie less tennants, will exacerbate the situation. Inflation will increase leading to a possible devaluation of the Qatari Real and then you are on the road to a real economic meltdown. I do not believe in scaremongering but within the next three months you will see the bubble burst.
Also, the economy in Qatar relies so much on oil, gas and construction. There is no tourist industry or real service industry compared to other countries and as the wealth of the country does not trickle down to low income people. Those people cannot invest or start a business and employ people as their main goal is to send money back home. They cannot buy property and if they can afford a loan are reluctant to so because when they loose their job and have to return home they cannot leave the country before the debt is paid. In summary, the economic downturn coupled with the inertia of a wealth retention within the country leaves little room for manoeuvre. On the plus size the countries wealth is being used very wisely in building services shuch as hospitals, schools, universities etc. These are not speculative developments and although there are many things here that people criticize, what the goverment is doing in spending billions on their projects is exactly what should be done elsewhere and for that they should be applauded