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“There is a more positive outlook for the freehold market in 2011 with signs that investor confidence is returning,” Doha Bank Group CEO R Seetharaman (pictured) said at Project Qatar, which will conclude tomorrow.
Adjacent to Lagoon Plaza at The Pearl, over 6,000 apartments are expected to be handed over by end of 2011 and to date, residential sales at The Pearl dominate the freehold market, he said.
Seetharaman also said the focus for new residential development in Doha continues to be in the three prime residential areas of the Diplomatic District, West Bay and Al Waab/Ain Khalid.
Finding that demand for residential property has shown signs of improvement over the latter half of 2010, he said rental levels are “stabilising” on the back of this increased demand despite the level of new stock that has been released to the market. However, rentals for the best compound villas have decreased due to oversupply in the market, but have shown indications of stabilising since mid 2010, Seetharaman said, adding in comparative terms, large stand alone, high-end villas have performed better with rates for good quality stock stabilising due to restricted availability.
On the retail real estate market, Seetharaman said the City Centre has been extended to incorporate five new luxury hotels -- Marriott Courtyard and Marriott Renaissance Tower, Shangri-La, Rotana Tower and the Merweb. Lagoon Plaza is another development, he added.
“The market is currently dominated by Villaggio and City Centre, which account for over 60% of the total retail supply,” he said, adding Barwa Commercial Avenue will increase the retail showroom supply.
Highlighting the key construction projects in Qatar, he said totals expenditure on account of winning the 2022 FIFA World Cup was to the tune of $65bn.