02/05/2016 08:00 AST
Barwa Real Estate Company announced yesterday that it would invest over QR15bn (about $4.12bn) in various new projects, including on building over 12,000 housing units aimed at meeting the growing demand for affordable accommodations across the country.
The whopping funds will be invested in a phased manner over the next five years to develop scores of real estate projects which include residential facilities, a motor city, warehouses, and complementary commercial and retail spaces.
“We are going to sign agreements with Manateq (Economic Zones Company) within two weeks to develop a warehousing complex spread over 250,000 square metres (sqm) along with all the support services, ancillary buildings and other complementary infrastructure,” Salman bin Mohammed Al Muhannadi, CEO, Barwa, said at a press conference yesterday.
Al Muhannadi added: “The sequence of projects this year is quite heavy. And most of the projects are related to housing facilities. After Manateq, it will be followed by the implementation of Motor City (Madinat Almowatir), Dara-A (residential project in Lusail City), Barwa Village expansion, and Barwa Al Doha projects.”
Barwa management recently reviewed all its new projects that were still in design phase to ensure their returns are increased. Barwa Al Doha project is one of them which has been renamed after redesigning Alaateda project from commercial shops to a residential complex that comprises 1,970 flats with complete service facilities.
Dara project, spread over 147,000sqm, is currently under development at the northern section of Fox Hills in Lusail City. The project is divided into Dara A, and Dara B-F which are to be completed by 2019. Dara A will offer 272 residential units consisting of one bedroom, two bedrooms, and three bedrooms.
The Barwa Village expansion, a mixed-use project in Al Wakra, will add 71 shops and 174 additional residential units to the property.
“Our focus primarily is on developing mid and mid-high segment housing units which would be rented at reasonable rates to fulfill the increasing demand of residential facilities. We are expecting to hit the market when rent rates are going to be perceived as reasonable for a longer period of time,” said Al Muhannadi.
Asked if the company would continue to maintain the prevailing rates of rents in future, he said: “Yes, that is our intention. Most of our housing units are now considered to be having the most reasonable rates in the market. Maintaining a reasonable rent is part of our national duty. But it is going to be challenging for us to maintain such rates. We have to work very hard, especially on the design and cost of construction, without jeopardising the quality.”
Commenting on the Barwa’s upcoming Motor City project, he said that the Company has revised the whole development schedule and will move ahead in a phased manner instead of implementing the entire project in one go.
“We are launching the tender for the first phase of Motor City today, which is expected to be completed by mid-2017. There is a big demand, and we have started getting enquiries from prospective customers, including second hand car dealers,” he added.
On overseas expansion, he ruled out any possibility of investing outside Qatar as the company is currently focusing on local projects, but he said Barwa is exploring and examining good investment opportunities only in neighbouring Saudi Arabia.
The Peninsula
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