External factors continue to test the real estate sector, “affecting its domestic course” despite efforts to shield it from repercussions wrought by global recession and sharp decline in oil prices, SAK Holding Group said in its latest report.
According to SAK’s Market Watch Office, which prepares a monthly real estate report, the property market “is still waiting to see if the cutting down of oil production agreement will improve prices.”
“Because this agreement is expected to fail, some countries including major oil producing countries are concerned that the growth in the production of ‘US rock oil’ will start a price war by the end of June,” the report said.
The report said real estate transactions in the last few weeks indicated “fears” among investors and real estate developers, who were wary of fluctuating oil prices.
“Any future projections of the market must not be isolated from this category of investors, real estate developers must carefully examine the market, adjust to cope with the current conditions, and develop plans and strategies to play a positive role in enhancing the real estate market,” the report said.
SAK’s Market Watch Office also noted field and analytical monitoring of local market indicators revealed that market conditions “are within normal standards.”
“Investments confirm the existence of capital that believes the Qatari real estate market is appealing and a good choice,” the report continued.
It added that some liquidity “returned to the market,” especially in the stock exchange market, and that “seasonal liquidity is looking for other investment channels.”
The report also lauded government efforts that led to current real estate transaction values and improved demand for empty land, as well as protection from “foreign factors.”
This, it added, also contributed to the diversification of the real estate sector, real estate initiatives launched by the private sector, growing interest in the tourism and hospitality sector, and other projects that are parallel with the commitment to spend on major government and development projects.