Qatar land price surge threatens property profitability
Land accounts for about half the value of real estate sales in Qatar, 10 times that of developed markets, as prices surge to levels that may make even high-margin luxury developments unprofitable to build, experts say.
Qatar allows foreign freehold property ownership in specific zones, although the real estate sector remains in its infancy and local investors often prefer to trade land rather than develop plots.
FIFA’s selection of Qatar to host the 2022 World Cup has exacerbated this trading, although population growth and a broadly buoyant economy are the main drivers of the land boom.
The central bank’s Qatar Real Estate Price Index, which includes land, villas and residential buildings, hit 271.3 points in March, up from 194.5 in January 2014.
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Source News: Gulf Times