17/04/2014

Qatar’s real estate market is looking good and is set for further growth throughout the year, says Mirco Maurer (pictured), Managing Director of Engel & Völkers.

Residential rents have increased, whereas office rents remain stable with an average rental rate starting at QR160 to QR200 per square metre. “Most owners of residential apartments and villas have increased the rent between 5 to 10 per cent this year.”

Maurer said for a decent three-bedroom villa located in a compound the average rent is between QR14,000 to QR18,000. While for a standalone villa with three to five bedrooms can be available starting at QR12,000 per month, however, if the budget is not an issue, then the West Bay Lagoon remains as the prime location, where rents have increased more than 10 per cent. “A good three to four bedroom villa [in West Bay Lagoon] can easily cost QR30,000 per month and even more.”

In regards to apartment rents, Maurer said the rental rate per month varies and depends on the location. “One can get a fully furnished two bedroom apartment starting at QR7,000 in the older areas of Doha or spend more than QR14,000 per month for a modern fully furnished apartment with Marina view at The Pearl-Qatar.”

Engel & Völkers mainly focuses on middle to high-end properties available throughout Doha. “Our customers are mainly Westerners and request three bedroom villas in nice compounds; mostly in close proximity to the school of their children, or two bedroom apartments at The Pearl-Qatar.”

He adds many real estate companies tend to focus on low-end residential units since there is also a very high request and demand primordially from Asians.

“The main demand from single expatriates and young couples would be preferably on an affordable one-bedroom apartment. These apartments could be as small as 40 to 60 square metres. The best studios you can find are located at The Pearl Qatar, but you will need to spend at least QR8,000 per month for a good unit.”

“High requests are still for areas such as Al-Sadd, as it is the busiest area. West Bay remains as the number one location when it comes to serviced-apartments; almost all towers seem to be full.”

Maurer said how mainly Western expatriates who have left their country of origin for the first time, tend to complain in regards to the standard of the residential unit versus the price. However, when comparing for instance to New York, Singapore or London with a budget of $3,000 to $4,000 a month, one cannot get a 300 square metre villa in a gated community with a lot of amenities. In these cities as Maurer underlines one has to drive more than one hour to reach the city or perhaps live in a very tiny residential unit without any facilities.

Qatar, on the other hand has improved every year on building regulations and quality of finishing, although it is a continual process. “On the side of the management there is still a large number of local owners who think they offer Property Management by having one person for a low salary in a compound or apartment building who can change a light bulb or in case of a problem tell you ‘Yes Sir, Sure Sir, We will fix it Sir’.

Maurer also recommends calculating 7 to 10 per cent of the rent income for Property and Facility Management.

ERIKA WIDEN - The Peninsula