Expats buying property in Qatar

Jenny , If we stop trusting others then we won't have hospitals / air lines / ships / jails / schools / electricity / water / factories / mills / markets / buses running day in & day out ..............

My understanding is that purchasing properties in Qatar is very limited for non-Qatari's. At present, only the Pearl properties are specifically made for foreign investors with which a new owner gains perpetual residency status. On the other hand, property laws continue to be reviewed with a view to make it more accessible to investors but to date I am not aware of freedom of choice being available. I also know from a friend that some people enter into property purchase in partnership with a Qatari but without proper contract and is based on trust alone. I, for one, would not touch that arrangement with a light pole as it is way too risky and fraught with probability of default. No one should place him/herself at the financial/psychological whim of another human being. I wish it was different but that is the reality of the property investments in Qatar as I understand it.

http://smithandken.ae/

jenny parker

Sorry, considering investing in property.....in Dubai. So just wanted to ask peoples opinions on just how crazy or stupid that sounds.....and in the unlikely event that you think there is a shred of sanity in this where do you think would be a good area to buy in Dubai. We were thinking villa's and either the Ranches or Lakes/Meadows. I found this web site http://www.imexre.com is it real cost?

Our apartment was already handed over in January 2011 and we are very happy with it.

The view is wonderful and unobstructed, the amenities, the boardwalk, the beach, the Infinity swiming pool.

Tlintilin - please elaborate

is this the longest running thread now ?

if for whatever reason you have bought property and need to leave qatar you can always convert your mortgage into a non-resident mortgage. The bank will increase your interest rate to 9.25% and will finance 65% of the loan although with me they were willing to leave it at 80% and they will negotiate as they do not want to lose your business. I purchased two apartments in the Pearl (2BR and 3BR) -- one back in January of 2005 at 7,000QR/sq. m. and one in December of last year at 10,000QR/sq. m. so obviously I put my money where my mouth is. I am do to receive the 2BR in October and the 3BR in December but who knows what delays will be there. One cool aspect is that UDC -- Master Developer -- is in the process of establishing an asset management division that will look after the units for a fee and this would include leasing, maintenance, registration etc...No headaches! I will be off to Dubai on a 4 year contract in August so I am bummed that I won't be able to live there but who knows, maybe i will be back once the contract expires? By then, the Pearl should be at it's peak

I think you've posted this question since along time ago, it doesn't matter, all I wanna tell is that asian expats are allowed to buy properties in qatar as any other nationality.

I am a banker in qatar, i am financing real estate investors and whatever linked to properties. this is my number call me at any point of time; +974 5124107.

How long should you be planning to saty here before you think it's worth buying?

Do  you thinkyou can sell really soon if you leave before the end of next year?

As those who have purchased, are the apartments ready to move in yet? Are there still some available to sell? How much does it cost with one bedroom now?

Which colony is closer to Ras Laffan?

Thanks

Hi Drake,

What makes you think that the condo fees would be that high?

"expect your monthly payment to be approx 10,500 riyal. Add 30% for a 2 bedroom".

As I said in the earlier post I bought a 2bd flat and did not have that info.

Thanks

I am buying a 2 bdr flat on the 13th floor of the Pearl Qatar - Viva Bahriya for 2.112.000 QR this week. I hope I have a good return. crossing my fingers...heheheh...

I think you have a pretty safe bet Aviduser by planning on being here for a few years, living in it, and keeping it for 10 years.

I just can't commit to more than a couple more years here. Knowing me though, I'll probably end up being here for 5+ more years, and driving by the Zigzagfrom my crappy flat thinking, coulda, woulda, shoulda as Aviduser is doing the Spidey dance from his window.

She told him we have brought here.

In a nutshell he said buying here is like putting money in the bank you aint gonna lose it.

Apparently there are massive plans for the Westbay Area Doha will be completely transformed in 10 years even more so than the plans that are already outlined.

I for one am glad I have got it now.

Stopped in to the Pearl showroom this weekend.

1 bedroom apprx 1.35 mil. 10% down, loan approx 1 mil

1 mill riyal - 25 year loan - 8.5% interest rate = 9683/ Qr per month. + condo fees expect your monthly payment to be approx 10,500 riyal. Add 30% for a 2 bedroom.

That's a big payment/month for only 1 bedroom. They've been for sale for 2 years and still aren't sold out. This concerned me for resale.

Could be a lot of competition for rentals once they're complete as a lot of people purchased for investment. Not sure what the market will be for 1 bedroom rentals charging 10,500 + whatever profit you want to make. A lot of the high end apartment rental market will probably be captured by West Bay, with a few thousand coming on the market within the year.

I was shown UDC condo's at the gate of the Pearl. Then I noticed the Grand Mosque directly across from the units. I was surprised all the units facing the grand mosque were sold out. I assume everyone living here would be muslim because that would definitely be your alarm clock Every Morning!

The salesgirl said the res and retail in phase one will all be ready first quarter '08. I'm thinking there's no way they will be done. When I feel I'm getting bs'd by a salesperson, I then don't believe anything they say. She said if they're late on delivery there are no penalties to them for 6 month as per contract. I'm thinking they'll be lucky to be done 1st quarter '09.

The first package I received from the Pearl 1 1/2 years ago said they were due for occupation late 2006.

On the other hand, once it's done interest could skyrocket and people will line up to get into the Pearl. I hope so for all the expats who've bought.

Thanks aviduser you can visit me in The Paerl too.

As for buying property, it is paid up front in instalments usually over 18 months, if you need finance the bank will do this but you'll need to pay interest on the increasingly larger amount of loan. Usually you'll have to put 10 per cent down, the bank will give the development company the other 10 per cent, so you'll be paying interest on that ten per cent immediately. Then about 3 months later the bank will pay a quarter of 75 per cent remaining, so you'll pay an increased rate of interest, then in another 3 months the bank will pay another quarter of 75 per cent and so on. When 95 per cent is paid, the remaining 5 per cent is withheld until you are satisfied and you get the keys and complete. The interest rates are approx 8.5 per cent, or 8.25 if you decide to get your wage paid into their bank. This is a high rate of interest, so best to try to pay in cash if you've got it, or put a big deposit down, or pay it off as quickly as you can by paying in extra. Of course if you do have the cash, you have to decide whether this is the best place for it as you are foregoing interest of 5 per cent in a savings account. Everything's a risk so good luck!

How do you go about buying a flat in the Zig Zag towers, or other developments here? i.e. which agents etc? I'm thinking of taking the plunge although agree with alot of the risks that people have pointed out.

Also what are the typical financing arrangements?

Thamks for the help...

were supposed to be anonomous, anyway you are right, anything could happen. Here London USA anywhere.

You can't account for the future we have to embrace the now.

Anyway you can visit my Zig Zag tower anytime

xxx

Yes, it could indeed turn to crap. Anything could. I could decide to buy in London and a dirty bomb could go off, rendering it uninhabitable. Or any bomb, or lots of bombs. Then again, maybe they won't. If I thought like this though I'd never do anything!

Personally, I'd rather Rent than Buy for following reasons :

1. For investment purposes, I don't think I want to invest in the Gulf. Politically, I still think Gulf is not stable. For any investment to prosper, political stability is the main pillar.

2. Most of expats come here to work. I don't think people come here to leisure. I've seen many cases of expats get their contracts simply terminated without any valid reasons. If that happens to me one day and I've to leave the country and cannot secure buyers for my property, how do I deal with that ?

3. The law of the land can change at any time. That is a big uncertainty for me.

4. Exchange Rate Factor. If Qatar continue to peg its currency to USD while other currencies have appreciated much, my true value of investment in Qatar will definitely adversely affected.

5. Qatar population is very small. Say if one day all expats have to leave this country for some reasons (like the US attacks Iran for example), there'll be huge abundance of properties being left vacant.

In summary, the risks of buying/investing outweighs the risks of renting.

Aviduser,

I want to strangle that stupid Spiderman. AGHHHHHHHHHHHHHHHHHHHHHHHHH

ROTFLMBO

Act your age not your shoe size

1.337 million. It's 131 square metres, including 30 sq mtrs balcony.

Cool......Congrats Hope you and your family have a great time at the Pearl. Would I be rude if i asked you how much you paid for the 1Bed room apartment all costs inclusive?

Nice one Greg,

Well done to all of you for getting early.

Wish i had the finances right now but its going to take a couple of months to sort out unfortunately.

Oh well such is life, good luck to everyone who is taking the leap.

Hopefully i will be joining you soon.

Have a good one.

I just bought a 1 bed flat in The Pearl, there are about 5 left. It's on the 2nd floor, which, after 4 floors of parking, will effectively be the 6th floor. So I should have an OK view. I mulled it over for months but decided it would be a good investment, and tax free rent too!

Congratulations on your purchase butterfly. Do you intend to live there or just rent. I am hopefully going to live there I brought a bigger flat for this reason.

I agree that it is a risk, worst case scenario is obvously that you can't sell it when you want to. In my case I think I will try and pay it off quick as possible then hopefully be able to keep renting it out and make money that way.

There is no chance what so ever of the Emir changing any laws to the detriment of expats or foreign investors. There is far too much money tied up in building, projects, infrastructure etc for that to happen.

If anything the laws will become increasingly relaxed with Dubai style free zones for investment next up.

After all with Dubai and hour away Qatar will soon be searching for it USP (unique selling point) Trade and Property liberalisation could be the key to the long term success of Qatar.

If this and I see no reason why it won't. WTO entry being another goal for Qatar that in 5-10 years Qatar will be seen as the more sophicticated Dubai. Less busy, more Liberal (trade, employment)

Buying in Qatar is risky. Very. THere is no property market history or laws, other than an ammendment that the Emir recently made to a law. And yes, laws can change any time. The market is very much driven by especulation and it appears to me, somehow, artificial.

As someone mentioned before, you buy directly from the developer which makes the whole process very straight forward, and yes, you do have in writing your permanent residency status... but then again,having things in writing in this country hardly makes any difference at all, should the laws change in the future. Yes, the Emir could "bring in a certain law tomorrow whcih would be detrimental to expats owners", but that will shy away all the foreigner investors that Qatar is desperately seeking to attract in the long term future.

I bought an apartment in the Lagoon Plaza development. I believe this was the right time for buying and will sell it when the time is right. Yes... risky and uncertain... ask me in a few years if it was a good investment!

Its not like you see loads of estate agents arounf here is it !!!.

Not quite the same as back home, I hope there is gonna be a market for these places

Too late now the deposits down

You are very right to be asking that question and that is a variable we cannot really predict.

I do know however that there are certain properties on the Pearl that offer you a residence permit when you buy.

So even if you loos your job you will still be able to live in Doha.

Does it sound like i am searching properties on the net?

Do I come across as uninformed?

I am not one for sprouting thoughtless words.

I was working with a property consultant and had reserved the property on the Pearl, Sabban Towers scheduled to finish Feb 2008.

Payment terms from Doha bank as follows:

10% up-front.

Pay nothing until occupation. So even if it is delayed my deposit is merely appreciating in value at roughly 10% per month.

Well that doesnt really matter i couldnt get the finance so i lost the property, but please understand that i have looked into the market here extensively as i thought was fairly obvious from what i have posted in this thread.

Have a good one!

Hey - thanks everyone for your comments. I've gained from reading about your experiences and views, though does that make me any wiser.....mmmmmm not sure ...

There's one area which people quote as a big uncertainty (amongst others) and that's regulation. I've heard that this is not watertight here, as it is in the UK and as it has become in Dubai, that you won't find anything written down. For example, the Emir could bring in a certain law tomorrow which would be detrimental to expat owners. Similarly - for those that have bought - do you have it in writing that you have permanent residency now - that you can't be kicked out if you don't have employment, because you have property ?

thanks

The Pearl's estimated completion put me off in the end, They say June next year for phase one but someone told me that plots are still yet to even be started and it takes 600 days to complete which makes it 2 years from now that I would be able to move in OR rent it. Thats a long time.

So I went for Zig Zag, estimated completion April next year. This looks more likely than the June date of the Pearl. But who knows put it this way you only have to look at the Zig Zag to think April might be at least realistic.

The above poster is correct why pour rent money down the drain here, why not invest, I don't even see it as a gamble. Look at the UK that market is racing ahead and it could topple anytime, recent inflation rate figures this week mean there will be an interest rate rise next month. People are spread awefully thin in the UK so further increaes could have a drastic effect.

All I know is hopefully in a year I will be living in a swish apartment 21 stories up overlooking a golf course and watching the sunset over the desert, that beats the arse off my present dusty, noisy AL sadd residence.

And work will be helping pay for it, sweeeeeet

You make a lot of sense if you can pay that 9000 and move into that property tomorrow. But if you are merely searching for properties on the net and don't really understand the fact the actual property will be available to you in 2010 and the area will remain a construction site till 2015, then I am sure you understand what I mean.

Quiet lurker. Poor Contributer

Can asian expats own property in Qatar? I m from the UK too, but this query is for my friend...And he is an Indian

Good point.

From a personal perspective my logic works as follows:

I have a choice, rent or buy....

If i rent that is money down a black hole only a monthly basis.

If i buy. let assume the property very conservatively appreciates at 8%, which was the interest rate i was quoted. That is purely to cover the interest that is repayable.

Whatever i pay towards my mortgage i will get back when i sell.

The only only time i loose is if the bottom falls out the market which is the risk factor of course.

Now when i treid to purchase a property on the Pearl, it would have cost me QAR 9000/month plus QAR 950/month for levies etc. That includes access to a gym and all the things you expect from a luxury developement.

Now would anyone like to guess what it would cost to rent a 2 bedroom equivalent in say West Bay?

14000, 15000/month?

Now that makes sound fiancial sense to me, all the risks taken into account.

Some other possible relevant information, my fiance and i are commited to being here for at least the next ten years and that does factor into my decision to buy.

Does that make sense to you Lamb or is my logic off?

Price is what a consumer is willing to pay, its not connected to cost price or profits. Its purely demand and supply (or speculation and day-dreaming). Finally the truth will be known only at exit ie if you are able to find a buyer at your expectation (or someone is willing to allow you the cream and still believe he will be getting further). When we discuss riches of Qatar and growth, we should not loose sight of the driver of this economy. Its not real-estate and tourism but natural Gas. Qatar hardly appears desperate enough to allow its population to be reduced to 5% of the sum total.

The world of finance is equally divided between "cautious" and "risk-taking" investors. There is no final word on it, its purely a matter of individual judgement. Its your money after all.

Quiet lurker. Poor Contributer

I am going to take your word for it as i have not looked at it for a year now, the marina that is.

I do however have a couple of high-end broker friends in Dubai, who still put the Palm at 40% more expensive than the Pearl so i think the Pearl is still a good bet.

The Marina however is a place i would hate to live. i wouldnt pay anything for a place there. Anyone who has been there would have an idea of what i mean, once its all online it will be a nightmare of a place to live. Way to many people in way to small a place.

The reason i am bring this up is that currently the lagoons is, in my opinion, a far more desireable place to live than the marina and i think the Pearl will be even better.

Now that enough of my personal views.

What it boils down to is supply and demand and the demand will always drive the price. what do you think the demand is like in qatar at the moment and more importantly do you think that will change in the next ten years?

I don't!!!

You quote the Dubai stock exchange, a fairly new concept, which since its inception has shown absolutely no reflection of the property market so i dont think it is valid to bring it in the the discussion.

I understand you are pointing towards the economic stability of the region but somehow it has never effected the property market, i think this is down to the rate with which it is growing, the fact the exchange is so up and down.

that level of high speed growth will always lead to instability but the one constant has always been the property market.

Just a quick note on the freehold, yes you are correct in saying it was legalised in 2002 but the concept began more than 10 years before that and that is how long they have been building towards it, literally, if you will excuse the pun.

Now back top the point at hand. I still maintian that the market in qatar will be very profitable for at least the next ten years but there are always risks and the higher the return the greater the risk.

I would say anyone going in to it must do so with eyes wide open and do their research well but as far as i am concerned the return is at the moment worth the risk....

Over to you!

Dubai is 10-15 years ahead of Qatar, I don't know enough about the markets in Dubai but the research I have done would suggest that, Demand DID exceedc supply and now this has caught up.

Prices in Prime developments are still high but in less attractive areas prices have dropped, after all if there is now huge choice people are bound to choose places near schools, work etc.

As for here, there are many property sites and advisors saying Qatar is the next big thing. Do I believe them ??

Well yes and no.

Qatar obviously has huge wealth and this is only going to grow.

But all this is irrelevent anyway, why, well I live here now and intend to do so for at least another few years. I can't get my company to pay for my mortgage in London but I can here. Effectively if your housing allowance is big enough your company is making the investment for you.

Where can we not benefit from that.

I would advise anyone to look arounf the internet type in Qatar property market, The fundamentals are good here, certainly in the medium term.

I was in Dubai recently and was offered at least 5 distress sale propositions in that figure of 550 for 1 beds in new developments (possession around 2009). The much trumpted Lago Vista from Damac was available for even less from one gentlemen and I met him. Correction: Dubai freehold started in 2002. Its been ONLY five years. A 2 bed at Dubai marina was sold at 435,000 at the start and was quoted upto 2.1 Million by the end of 2005. Its rumoured to be available now at around 1.1 million. Since I wasn't keen now given the uncertainities, I did not enquire much. All the property dealers in the dubai are as much speculators and dream merchants as they are around the world.

Dubai Stock exchange was 1400 points in 2006 and it crashed to 420 points a few weeks later and now its back. When things dont operate on any fundamentals and you have one-eyed experts always claiming yearly rises in their dreams, the only person who will take a hit will be you and me.

I only believe in one cliched dictum- Don't trade for fish which are still in the water.

Quiet lurker. Poor Contributer

Hi Lamb,

i know you directed your question at Avid but i share his veiws on the market here so i hope you dont mind if I respond!

I am not sure where you get your information on the Dubai Marina but if there are apartments available there for 550 000 AED i would like to see them.

I spent alot of time looking at property in Dubai when i lived there and while the prices looked like they would be leveling out they certainly are showing no signs of "crashing".

In the same breath i think Dubai is finally catching up with the demand for apartments, roughly 350 000 coming online in the next year or so while they are still far behind in the villa department.

The difference is that Dubai has been buildiing its freehold market for the last 15 years, Doha has just started and there are a large numer of young professional like myself and Avid who are looking to buy, not rent.....

So they demand will drive the price and it will be at least another ten years before they catch up with the demand.

I previously commented that the investment would be safe for around ten years, political climate not with-standing.

Now that is my opinion, what do you think? i am very interested to get other people perspective.

Cheers,

paul

You sound pretty vague in your confidence, When you say "I hope" and "I think" but you conclude pretty confidently with the term "no-brainer". The prices of Lagoon are above a million for a one bed appartment. Such prices in the heart of Dubai Marina have now crashed to 0.55 million. Still Dubai has a higher brand equity and better business environment. I am sure you might have done much more research and assessment of the scenario before getting in.

Please elaborate further on your analysis. Anyone who buys is pretty convinced of his moves specially when there is no clarity on ownership and legislation. The other factor that has literally killed the Dubai market is the very high figure of Annual maintenance charges of about 10AED/Sq ft/Year.

Please share your analysis with us.

PS: I am not critiquing or analysing your decision to buy. I am only seeking more information that you may like to share with us on your analysis.

Quiet lurker. Poor Contributer

Thanks for that qatexpat.....

You might want to elaborate on that very dismissive statement....

Why do you feel that its not worth it and what do you base your statement on?

Forget Lusail, its not worth it.

I am now considering Lusail as an option but i am wondering if it is going to be too far out initially and will show a slower appreciation.

I have seen it happen in Dubai, the original western villa area is the Springs and Meadows near the Dubai Marina and the Palm Jumeriah. They have subsequently built the Arabian Ranches and while the Springs etc has continued to appreciate dramatically the Ranches is struggling a bit.

Now i believe that the lagoons and the Pearl will soon become the centre of Doha and Lusail will be the suburbs do you think the places there are going to hold their value as well as the Pearl?

Whats your opinion, i would be interested to know as you seem to have the same ideas about the property market that i do?

Please clarify:

Those buildings will not last long, have you not noticed how they are built?????

Property even in the building I have brought in has gone up 20% since its launch. The Pearl is adding 10% to each phase.

Its going to keep going, and you are right why should my company put rent money into someone elses pocket when they can pay towards my mortgage. I am happy with 10% apprication on the property. I would have got 5% in the bank and realistically its going to be more than that.

10 years is probably about the right amount of time to keep hold of it. By then you will have Loisil Wackra Al Khor etc all built and it will be an established market. Until then I am holding for the ride.

What is the problem, I would maybe have a few doubts about the Pearl just becasue its reclaimed land but my tower built on solid ground out of concrrete. I think it will be ok for some time to come.

The finishing in this country is appauling but you can't argue that the building are not solid.

Hey.

I looked at a place on the Pearl in Sabban Towers, which will be the first completed tower on the pearl.

I, unfortunately couldn't get the finance fast enough so i lost the apartment, the tower is now sold-out.

Property prices are rising roughly 10% per month at the moment and trust me that is not going to slow down in a hurry. They just will never beable to build fast enough to catch up with the demand as has happened in Dubai.

I definitely think it is a good invetsment, even if the appreciation on the property slows down to 10% per annum that is still a good investment when you condsider the fact that you are currently just pouring your rent money into someone else's pocket or mortgage and you could be putting that into your on property which you can redeem when you sell the place.

For at least the next ten years your investment will be very safe, that being said who knows what will happen if America goes after Iran?

There is no return without risk though as i am sure you know and the market here is showing great return.

For example, the place i looked at was going for QAR 1,620,000. 2 months later it is worth 1,900,000.

If you can afford it, go for it. I dont think you have anything to loose and plenty to gain. I know i will be buying soon.

I just brought on Lagoon Plaza, so I am hoping the market doesnt come down anytime soon. Personally while all this building is going on and while there is a buzz about the place then I think prices for property will keep rising. I was reading a Dubai site the otherday saying prices are beginning to drop due to over supply.

I think that problem is a long way off here. Plus I brought because my company will give me a housing allowance so they will be paying for my investment and when you look at it like that its a no brainer.

Icidently I did look at the Pearl it is going to be very nice but just not soon enough and I think they are a bit over priced.

Personally.. i think the real estate industry may start a down slide soon, it seems like Rents have skyrocketed within the last year or two, It is likely that the asian games had soemthing to do with this and i just can not imagine the prices of real estate maintaining this insane rate for much longer. Something has to give.

On the flip side of the coin, Qatar has been and still is expanding at a fast rate, there could continue to be a growth spurt and that would mean that more housing would be needed for workers...

I'm absolutly no help am I? lol~ sorry :(