Barwa rent hike sends wrong signal
DOHA: State-backed real estate giant, Barwa, has sent wrong signals to the market by raising apartment rentals of its Mesaimeer housing units which was launched for community support at the peak of the housing shortage in the country, say market sources.
They point to the fact that since the decision of the 2022 World Cup bid in which Qatar is taking part is barely days away (on December 2), the rent hike by Barwa signals that real estate prices could go up in a nightmarish repeat of the recent past.
The move took Qatar’s sluggish property market by surprise, also because it was made at a time house rents had been dropping due to low demand and exceeding supplies.
Being a government-owned venture, Barwa should have stuck to its professed policy of providing affordable housing to limited-income families, say critics, many of whom have been airing their views publicly through popular call-in radio programmes.
http://www.thepeninsulaqatar.com/qatar/134055-barwa-rent-hike-sends-wron...
My first reaction after I read that news was bursting into laughter...
I remember a couple of years ago, when barwa started renting at ridiculously low prices, I was thinking to myself how unfair of a government to compete with private land owners...that's what I think barwa was doing, and because of gov't backing, it could slash rents way low and attract tenants asap.
DOT says that barwa projects were aimed to help low incomes...I disagree...they're aimed at preying on them this is evident in the recent increase in rent, it won't be the last...same goes for ezdan...their rent prices are not so cost effective, it is obvious there is a hidden agenda....
if you're planning to stay in doha for few years, then u got nothing to worry about...if not, then you're in for some paycheck rape...
I personally think the prices are heading up in the next 10 years, if we don't get the world cup 2022, we will go for 2026, and the world olymics, and many many other events, as long as fossil fuel is gold.....
sailiya barwa or wakrah village is not in the category of 'hike in rents' sailiyah has recently started accomodating paying guest & their rents are same as were in the earliear contract of mesaimeer barwa!
rent hike initiated by Barwa could lead into a more catastrophic scenario...wait until 12-12-2012 and see how it's gonna look like....
only government and semi-government organizations are paying good rental allowance to employees according to the market. but they are not even 5% of the overall population.
Private sectors are not paying good salaries and not even enough rents comparing to the actual market rents.
overall rents in Qatar are already too high comparing to the incoms.
This expectation of "rent increase" is really silly.... its already so much bloated.... even now... compared to anywhere in the world....
There needs to be a ceiling on the rent increase and there needs to be one in the immediate future if Qatar gets the 2022 WC bid.
Response to Barwa units at Salilya and Wakra are lukewarm... at Salilya response is almost Zero....
Mesamier is the only unit in demand due to the proximity of Schools, Wholesale/Fish Market and Church..... So now Barwa decides to screw them....
If the residents start moving out .... Barwa will be in a very tight spot....lol
but incase if qatar couldnt get the 2022 games, as an example, would rents go slash back or remain on the hike!
The good thing, that there are many low income Qatari families who are living at barwa housing and have raise this issue in both TV & Radio Talk shows. The more people complain, the better the chances of Barwa giving up their stunt
even if not Barwa, any increase will always be dealt with complaint! And Barwa knows it! I am not defending Barwa, but analysis of it will just frustrate those who have units there. Best move is to move out and find another place, it is the most viable options!
This should have been in the Funnies...lol
barwa's this project was aimed to help low income people. and many of those residents can not offord this increase. many has called the local radio station and they are requesting not to increase.
Pure exploitation and ultimately unsustainable - supply and demand will dictate the market NOT the nuances of one particularly greedy and ill observed profiteering company.
My moneys on Barwa backing down from this now, especially if Qatar don't win the WC bid.
the law of supply and demands will still be the factor! Barwa is increasing because their marketing strategy works before and they are just exploiting it.
if Barwa do increase, then others might follow the same. many more will get increase also. since last year rents started going to normal rate.
Many people living in other properties also has started getting worry about increase. their landlords might follow the same barwa increase.