Professional Documents
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Introduction
Ian Albert
Regional Director | Middle East
Colliers International
ian.albert@colliers.com
Peter Bibby
Director | Qatar Country Manager
Colliers International
peter.bibby@colliers.com
Mansoor Ahmed
Director | Development Solutions
Colliers International
mansoor.ahmed@colliers.com
Colliers International
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
Existing Residential
Landscape
24%
21%
80%
60%
79%
95%
40%
20%
76%
Villa
5%
Owned
Apartment
0%
Apartments
Rented
Villa
10%
22%
30%
29%
39%
96%
48%
60%
33%
20%
Hospital / Health Center
1 - 5 km
Primary School
Asphalted Road
More than 5 km
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
6%
90%
80%
36%
70%
60%
50%
40%
44%
30%
20%
10%
15%
0%
Apartment Supply
1BR
2BR
3BR
4BR
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
Affordability in the
Rental Market
Affordable housing takes many different forms, and
this whitepaper uses the term to define all housing units
at levels affordable to average households in Doha.
Analysing the latest available income and expenditure
surveys published by Qatar Statistics Authority
(2012/2013), suggests that average expatriate
households in Doha spend approximately 34% of their
income on housing (household spend of Qatari
nationals has been excluded from this analysis since
82% are home-owners).
The average spend on housing in Doha is considerably
higher compared to a number of established
international benchmarks, such as the Department of
Housing and Urban Development (USA) and NSW
Government (AUS), where the accepted definition of
affordability is for a household to pay no more than
30% of its annual income on housing. In the UK, The
National Housing Federation defines affordable rent
levels at 25% of household income.
Colliers rental affordability analysis excludes those
earning less than QAR4,999 per month, since this
income category are generally blue collar workers and
are provided with labour accommodation.
Exhibit 6: Monthly Household Income Distribution in Doha & Rental Affordability Levels
20%
15%
10%
5%
Rental Affordability:
QAR 3,400 QAR 6,800 p.m
25%
29%
Rental Affordability:
QAR 1,700 QAR 3,400 p.m
30%
18%
7%
0%
QAR 30,000 QAR 39,999
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
Rental Affordability:
QAR 17,000 + p.m
35%
Rental Affordability:
QAR 13,600 QAR 17,000 p.m
40%
40%
Rental Affordability:
QAR 10,200 QAR 13,600 p.m
Rental Affordability:
QAR 6,800 QAR 10,200 p.m
45%
3%
2%
QAR 50,000 +
Rental Rates
Due to the strong demand and limited supply in the
housing market, rent prices have risen over the past few
years, a trend which is likely to continue.
The level of the average rent price (per m usable area) has
also witnessed a strong performance since 2012, driven by
a combination of strong economic fundamentals and
population growth in an already undersupplied market.
This is shown in an analysis of average rental prices across
apartments in key residential districts of West Bay, Al
Sadd, Old Airport and the Pearl Qatar.
16%
14%
14%
14%
14%
200,000
AED p. a.
11%
12%
10%
150,000
8%
100,000
6%
YOY % Growth
4%
50,000
2%
0
0%
Old
Airport
1BR
2BR
Qatar
Pearl
20%
14%
900
15%
10%
4%
5%
600
-3%
500
0%
400
-5%
300
-15%
745
634
614
639
700
799
100
-10%
-15%
2008
2009
2010
2011
2012
2013
2014
200
-
-20%
YOY Growth
-15%
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
YOY % Growth
10%
700
875
800
2BR
3BR
144,000
186,000
228,000
2BR
3BR
126,000
163,300
204,000
2BR
3BR
75,600
102,000
114,000
Household
Monthly Income
1BR
2BR
3BR
72,000
90,000
108,000
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
Legend
Compounds in Doha
5 km
10 km
8
Average Annual Rental Rates (QAR)
Apartments
1BR
138,000
1BR
Villas
2BR
3BR
146,000
4BR
225,000
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
242,000
4BR
60,000
Sales Prices
QAR per m2
8%
7%
14,000
7%
12,000
6%
10,000
5%
4%
8,000
4%
6,000
9%
8%
3%
2%
13,000
10,750
2,000
16,000
2%
14,250
4,000
1%
0%
Porto
Viva
West Bay - Fox Hill Arabia - Baharia Lagoon
Lusail
The Pearl The Pearl
Plaza
QAR per m2
YOY Growth
25,000
10%
5%
6%
5%
2%
20,000
15,000
-5%
-11%
-10%
10,000
-15%
-15%
-20%
19,500
16,667
13,333
11,917
12,125
12,775
13,500
5,000
2008
2009
2010
2011
2012
2013
2014
-25%
QAR per m
YOY Growth
-20%
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
YOY Growth
QAR per m
0%
YOY Growth
Developing
Affordable
Communities
Successfully
The increasing rental rates continue to be a concern for
many expatriate households in Doha. With Qatars
population witnessing some of the highest growth rates
in the world, the concern for more affordable housing
solutions, both within the rental and the sales market,
are only likely to be exacerbated in the short to medium
term.
Local developers such as Barwa and Ezdan have
attempted to meet the demand for mid-market housing
by constructing more affordable residential
communities. However, given the significant
undersupply in the market, economic forces of limited
supply and increased demand have been met with
higher rentals, which has resulted in an unaffordable
housing market.
Public Private Partnerships between developers and the
government can assist to increase the availability of
more affordable residential communities in Doha.
Increasing
the Buying
Power of
Residents
Conclusion
As seen globally, governments are actively involved in
providing developers access to well located and
serviced land, home investment partnership funds, and
favourable developer financing options as active
incentives for developers to develop affordable housing.
Reduced
Cost per
Employee
Improving
Worker and
Employer
Attraction and
Retention
Developer Benefits
10
Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
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Design Reviews
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Residential Market and Affordability Levels | November 2014 | Doha | Colliers International
485 offices in
63 countries on
6 continents
United States: 146
Canada: 44
Latin America: 25
Asia Pacific: 186
EMEA: 84
$2.1
billion in
annual revenue
Ian Albert
Regional Director | Middle East
+971 4 453 7400
ian.albert@colliers.com
Peter Bibby
Director | Qatar Country Manager
Colliers International
peter.bibby@colliers.com
Mansoor Ahmed
Director | Development Solutions
+971 4 453 7400 | +971 55 899 6091
mansoor.ahmed@colliers.com
1.46
billion square feet
under management
15,800
professionals
and staff
colliers.com
Copyright 2013 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been
made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the material contained in this report.