DOHA: Qatar’s commercial real estate sector is anticipated to reach $16.8bn (QR61.28bn) this year, leading to a whopping amount of $24.19bn (88.24bn) by 2029. In its latest report, Mordor Intelligence stated that the market is expected to grow at a compound annual growth rate of 7.56 percent during this forecast period.
The country is one of the fastest-advancing economies in the world. Researchers state that some of the major factors driving the growth of commercial real estate in Qatar are rising construction activities, GDP growth, and the initiatives of diverse policies by the government.
Most of the construction sector works in Qatar are for high-end residential towers, white-collar office spaces, luxury hotels, and shopping malls. Global events including the FIFA World Cup in 2022 attracted more than 1.5 million fans, which supported the demand for hotel rooms during the period.
Analysts remark that this is envisioned to expand the hospitality market in the country, as Qatar currently has nearly 26,500 hotel rooms, and it is anticipated that the country may add 15,000 rooms in the years ahead.
Over the past three years, the retail space also doubled and it is foreseen to increase by almost 50 percent, with many new malls scheduled to open in the upcoming years.
Market experts explain that the country is also moving towards a shift in demand for infrastructure and logistics, and numerous ongoing international events are continuously driving engagement and drawing more spectators across the globe.
The report said “Qatar’s government has also introduced foreign ownership laws for various asset classes in the country, which has benefited the real estate market. As per this new law, all asset classes, including offices, shops, and residential villas, in a compound are legalized for freehold ownership.”
However, there is a significant increase in the number of market players in Qatar, primarily driven by infrastructure development and construction activities happening in the country, according to the industry leaders.
“The Qatari real estate market is also witnessing innovations and improvements, such as increased public-private partnerships by the government, which is driving more companies to enter the country’s real estate market,” it added.
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