One in 10 Qatar homes seen empty in 2010
source: arabianbusiness.com
http://www.arabianbusiness.com/570818-one-in-10-qatar-homes-seen-empty-i...
by Andy Sambidge
One in ten residential units in Qatar are likely to be empty in 2010 as supply outweighs demand in the Gulf state, a new report has said.
The study by Engel & Volkers Commercial added that with a large number of residential projects scheduled to be completed within the next year, rents were also likely to take a tumble.
The rents of commercial buildings, meanwhile, would bottom out next year, according to the survey, The Peninsula reported on Sunday.
The report said a large number of projects had been completed in Doha, especially in prime locations like West Bay and along C-Ring Road, putting potential tenants in a stronger position.
The study, which claimed that there was a substantial decline in the rents of office buildings, said against an average rent of QR300 per square metre per month during the 2006-2008 period, rents for office space had gone down to QR230-QR170 per square metre in the same area.
“We expect the average office rents in Qatar below QR165 per square metre by the end of this year, and forecast the average rents at approximately QR145 per square metre by mid-2010”, the report added.
The report said the most important factor regarding residential rents was location while the market for compound and stand-alone villas remained dull.
but the grocery, fruits and vegetables prices went up ... so technically no changes at all :(
It's a balanced equation, when something goes down something else has to go up to keep it like that ...
I hope the no more demolishing of buildings because they are old, that's another factor to keep the equation balanced.
Despite the fact that some big company starts acting smart, building their own accommodations to save money ... so no more Bulk renting and paying while the buildings are empty.
Despite the fact also that the banks are forcing almost everyone to rent their properties to pay the bank loans if ever they took the loan for that purpose ...
Still you can barley feel that anything was chaned really ...
Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment. (Gautama Buddha)
Good for all
mmmm...thats a happy news !
unfortunately this news taken seriously by our employer to reduce our "housing allowance" which can not even meet the decent 1BHK portion of a villa, monthly payment.
I had been hearing this for long,,, but in reality couldnt see that in real. and people are so reluctant after tasting the hyped price, they let it stay empty till they get a good (greedy) deal.
can only pray this report reaches the greedy real estate agents and bring shower some ray of hope. all the best.
FACE YOUR FEARS LIVE YOUR DREAMS.....
Gud to hear
dont knw when it will happen:s
Work for 30 yrs and have a retirment of 3 yrs OR
Work for 3 yrs and have a retirment Of 30 yrs :D
Consult me:D
I just hope na mgkaron ng implementation in actual life....... wish ko lang at sana maalala ng mga hinayupak sa pwesto pati na ang salary increment "INSHAALAH"
"ITS GOOD TO BE BACK.......HOPEFULLY!!!!!"
The rent for residential which are in highest demand is for the lowest level of 1 bed room around QR3000/monthly. I dont think it's gonna go down. My husband is getting temporary housing allowance which will be reduced by next month which going to be QR2500/monthly (thanks to this "clever study". And the total take home pay meagerly cover the very very simple living style like us with 2 kids going to school.
I think government should look into this matter, the lower working class like us which is the biggest portion of expat population in qatar.
Yeah yeah they said more supply, it is only for mid and upper level which is ranging QR7000 above (the whole monthly salary of working class like us).
And this kind of news is taken by private company "CRUELLY" slashing their lower level staff salary without any consideration.
It is mutual relation, we also contribute for this country's development, shouldnt we also appreciated? at least accomodated to have "stress proof life" while we are working in this country?
Too good to be true, it's got to be implemented by law first and only then can something concrete begin to materialise. If not this will only be a dream.
"Beauty lasts for a moment, but ugly goes on and on and on"
Alhamthullilah...! Very good news!
I tottally agreed with sufined..............................WAIT & SEE
thats GReat...but again its just a report about which no one knows if its true or not..may be they just want to fill their news paper cuz they had this empty space :D and no advertisers or content to fill in
Fear of God is the beginning of Wisdom
So that is saying that 10% of homes will be empty.
Most probably because they are considered 'luxury' and not enough people to afford it.
Whereas 'affordable' housing will still be in demand.
__________________________
Mr. Q's Blog - A Qatari's view on Qatar.
better to get a villa or flat w/o contract duration...
.
.
.
KEEP MOVING!!!
You can't sit still and wait for your rent to drop. You need to move home and negotiate a good rate. Or at least threaten your current landlord with the possibility of you moving out to a cheaper place unless he drops your rent, you can't expect the landlord to do anything unles YOU act.
IF RENT GOING DOWN IS GOOD FOR EVERY ONE ONLY WHEN THE COMPANIES WILL NOT REDUCE THE CURRENT RENT ALLOWANCE FROM THEIR EMPLOYEE.
AS SOME COMPANIES ALREADY STARTED TO REDUCE HRA OR KEPT UNDER OBSERVATION.
Barwa should also be mentioned here, as they have also contributed a lot. I personally think they have provided good accommodations in very reasonable prices.
Adeel Ali
it is good to hear that, many people in the past paid double the current rent.
hopefully, this will benefit laborers in camps.
Karwa buses was a very successful project that enhance the overall living conditions in Qatar for the whole audience.
Guys let's face the fact , every body here is glad because he will move to a bigger or a nicer place , why u guys do not think that the drop down of the rental will be due to the less people who wants to rent , in other words may be you or me will not be here anymore to get this advantage of renting a 2br for 3000qrs ......;)
+ Hyper-Inflated bubbles don't burst so fast here...
Nurture your hopes for the rents to come down.....I do not believe until it really comes into practice. The main reason being the fact that most of the dealing are through agencies / brokers and they need their "gluttonous" share apart from the owner...
It's not a "Supply-Demand" model they use in Qatar, it's called "Greediness Model".
well the good news is ... we can expect the rents to drop down... hopefully even in the west bay... that will be more like it.
So let me know when rents, both residential and commercial come to a reasonable level. lets face it, they are still not at reasonable level.
Doing some research yesterday I found out the rental of a 2 bedroom apartment in mid-town Manhattan is nearly the same as a West Bay 2 bedroom apartment.
Do you actually think the rental of a Pearl or ZigZag apartment is justifiably the same as Manhattan?
Prices here are still at an insane level. It will be interesting to see how the remainder of what has to be sold at the Pearl plays out. Now with the true light of the extortionate monthly fees coming into play, people are turning away.
So what if 10% will be empty, at the highest price more than 25% were vacant...
The "Supply and Demand" model doesn't work here.
its true that rents are not increasing, but not going down also... stable... no one can predict the future... coz... most of the areas are gonna be Demolished...
I would be happy when I could get a nice 2 BHK apartment in 4500.
Adeel Ali
Big numbers of companies from Dubai and other countries came here for business everyday , every one need offices.........
still we don't have any offices below 9000/ then how this happens?
& case of compound villas nothing for below 10000k still........................
we'd advertised a chunky portion of our home for rent for a measly 5000 bucks and it's still up for rent....can't even imagine such a situation a couple of years ago :-/
Going to church no more makes you a Christian than standing in a garage makes you a car. ~ Garrison Keillor
actually rent scenario has come down a little when compared to last year .. but no drastic decline ... hope it comes down by early next year .. we r just waiting to shift ...
we're still waiting for the rents to come down...nothing's actually happening,though :S
Going to church no more makes you a Christian than standing in a garage makes you a car. ~ Garrison Keillor
The rents should come down more as the current market rents are still very high.
Rents will go down !! youpeeee !!
"Insanity: doing the same thing over and over again and expecting different results.”
Good News.
Congrats!
~noms~
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"Before God we are all equally wise ' and equally foolish" - Albert Einstein