atar’s commercial real estate sector is expected to reach $16.8bn this year and $24.19 billion by 2029, growing at a CAGR of 7.56%, Mordor Intelligence stated in its latest report.
The peninsular Arab country is one of the fastest-advancing economies in the world. Analysts note that some of the major factors driving the growth of the commercial real estate are rising construction activities, GDP growth, and the introduction of various policies by the Qatari government.
The majority of the construction activities happening are for high-end residential towers, white-collar office spaces, luxury hotels, and shopping malls. International events, such as the 2022 FIFA World Cup, drew nearly 1.5 million fans, which supported the demand for hotel rooms in 2022. Researchers state that this is expected to boost the hospitality sector in the country, as Qatar currently has around 26,500 hotel rooms, and it is anticipated that the country may add 15,000 rooms in the coming years. A recent report by the World Travel and Tourism Council stated that travel and tourism generated QAR 67 billion (USD 19 billion) in 2021, which represented 10.3% of the nation’s GDP.
The retail space growth also doubled in the last three years, and it is expected to grow by nearly 50% more, with many new malls scheduled to open in the upcoming years. Qatar is also witnessing a rising demand for infrastructure and logistics. Authorities introduced foreign-ownership laws for various asset classes in the country, which has benefited the real estate market. As per this new law, all asset classes, including offices, shops, and residential villas, in a compound are legalized for freehold ownership.
However, the report highlights that there is a significant increase in the number of market players in Qatar, primarily driven by infrastructure development and construction activities happening in the country. Major players are Barwa Real Estate Company, Ezdan Holdings, United Development Company, Mazaya Qatar, and First Qatar.
The online property market in Qatar has been dominated by a few real estate portals, such as property finder.qa and mubaweb.com. The sales proportion of real estate properties through the online market has consistently grown, owing to rising internet penetration, growing demand, incline in personal disposable incomes, and surging middle-class youth population.
The Qatari real estate market is also witnessing innovations and improvements, such as increased public-private partnerships by the government, which is driving more companies to enter the real estate market, Mordor Intelligence’s report concludes.
