project development | business insight
live in isolation. We are part of a region that thrives on volatility and economic sentiment. Negative economic news anywhere within the Gulf Cooperation Council tends to affect investor sentiment in Qatar and understandably so. But then again, people move on and remind themselves of the historically proven fact that the best time to buy real estate is when the sentiment is worst and no one else wants to buy. The other challenge would be that of inflation, particularly a cost-push inflation brought about by the construction boom. The government’s commitment of increasing services and improving infrastructure in the country by allocating USD130 billion (QAR473.2 billion) to real estate and infrastructure development over the next six years has fuelled a construction boom which has increased demand for heavy equipment, construction materials and expatriate labour. The construction costs in Qatar are expected to further increase in the next few years. How will this affect the scope for real estate players? It is indeed the case that cost-push inflation will likely accelerate as demand for heavy equipment, construction materials and expatriate labour increases. Therefore, stakeholders in Qatar’s real estate sector must ensure commercial viability and profitability by offering world-class quality property in terms of construction, development, design, interior and exterior finishing, as well as other valueadded benefits and sound investment opportunities, in order to attract buyers and investors to survive. If such players can develop an excellent track record in terms
“In Qatar, the demand for luxury residential apartments continues to outpace available supply.”
of sales and how quick they are actually able to sell off their projects, these developers would likewise build an excellent reputation with financial institutions and banks who would be more than willing to provide financing for projects. Therefore, any real estate player for that matter, under such inflationary tendencies, must ensure credibility and integrity to prospective investors and financiers to ensure continuous and sustainable cash flow to stay in the market. What are some of the opportunities available to developers in Qatar? The opportunities for developers like Qatar Coral are abundant in Qatar, and very well outweigh the challenges of the market. Firstly, I strongly believe that Qatar’s economic and political stability would enable the country to manage inflation and thereby enable the country’s residents to cope with it. Secondly, a draft law is being prepared to regulate the real estate sector, specifically real estate valuations. In light of the construction boom in Qatar, property value regulations are important and are a welcome development for the real estate market in general. Significantly, this draft law will prove to be a deterrent to speculative practices. Most importantly, Qatar is one of the fastest growing markets in the Middle East and North Africa and represents a significant opportunity for investment in the region. Driven by the Qatar National Vision 2030, and the country’s fundamentally strong economy that boasts one of the highest gross domestic product (GDP) per capita in the world, Qatar’s real estate market is definitely poised for significant growth Which area of Qatar’s real estate do you see as having the highest growth? The demand for luxury residential apartments continues to outpace available supply, due to the fundamentally superior macroeconomic conditions in the country. In Qatar, what are some of the measures Qatar Coral has taken to sustain its market position? There actually is no secret formula with regard to the measures we take to ensure sustainability. Our strategic priority is to be the foremost real estate developer
“Qatar is one of the fastest growing markets in MENA and represents a significant opportunity for investment in the region.” and home provider of choice in Qatar. As such, we are dedicated to maximising the value of the real estate investments of our customers by creating sound investment opportunities that present profitable returns. We are a builder of homes and establish communities that set the benchmark and standard for luxury living. We focus on originality and distinction, while emphasising on timeless sophistication and style. And through our unwavering commitment on all that I have mentioned, we have built our credibility and integrity in the market for customers, investors and financial institutions to trust us. VB22 and VB23 stand apart because of their thematic uniqueness. Are there more such projects in plan? Qatar Coral’s VB22 and VB23, Viva Bahriya, The Pearl Qatar are twin plush towers that set new standards for luxury residential living. With two distinct styles, both towers offer a clean natural environment with excellent night landscaping. The main opportunity we have is Qatar’s burgeoning property market. We are focused on identifying and capitalising on such opportunity by investing in and developing real estate projects in Qatar in areas open to 100 percent foreign investment and ownership. So definitely, we are looking into more of such projects in the future under similar conditions and opportunities. The Edge | 85