Professional Documents
Culture Documents
Q1
2012
Highlights
Sales Prices 2 (QAR/m ) Min Max
Rental rates in both the residential and ofce markets remained stable with little change from Q4 2011. Residential leasing transactions increased signicantly over the previous quarter with strong demand for one and two-bedroom apartments at the Pearl-Qatar. The Pearl-Qatar remains the development of choice for many expatriates. Similar to Q4 2011, investor enquiries for residential property were at improved levels with the majority of enquiries coming from local investors to purchase from distressed sellers.
16,000
250
With over 25 years experience in the Middle East, Astecos Professional Services team brings together a group of the Gulfs leading real estate experts.195
200
Astecos network of ofces in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Bahrain and Jordan not only provides a deep understanding of local markets but also enables us to undertake large instructions where we can quickly apply resources to meet the clients requirements. 140 150
130
145 105
QAR/m2/pa
110
10%
Rental levels remained static during the rst quarter of the year, -5% further demonstrating stability in the market.
-10%
The majority of enquiries continued to be for ofces ranging -15% between 100 and 500 square metres on a fully tted basis at -20% secondary-prime rental levels. This segment of the market is Asteco does not anticipate material rental growth in this sector relatively under supplied. Modern, good quality, functional ofce until the beginning of 2013 at the earliest; however, in a regional -25% Jun Sep Dec Mar Jun Sep Mar Jun Sep Dec Mar space available on a2009 or partially tted basis in this size range fully and Dec global context the continued static rental levels should be 2010 2011 2012 is comparatively scarce compared to prime, shell and core ofces Apartment Rentals positive. viewed as Apartment Sales Ofce Sales Villa Rentals Ofce Rentals
250
of 650 to 800 square metres. Landlords who are under pressure to generate income could consider offering exible leasing terms including sub-division of oor plates and tted space to meet this area of tenant demand.
200 25% 150 20% 15% 100 10% 5% 50 0% -5% -10% -15% -20% -25% 0
195
1%
140 110 145 130
0% -1%
QAR/m2/pa
Dec 2011
105
Mar 2012
West Bay
A Ring Road
C Ring Road
D Ring Road
Old Doha
Airport Road
2009 2010 Our research indicates average rental levels across all areas of Doha Apartment Sales Ofce Sales were unchanged against the previous quarter.
Transactions improved signicantly during Q1 2012 in comparison Average Ofce Rental Rates (Q1 2012) Al Sadd to 250 2011. This increase can be partly attributed to a number Q4 of established Qatari companies changing their housing policies Bin Mahmoud by 200 allowing employees to take direct leases with landlords, rather 195 Al Muntazah than employer-owned accommodation. In Q1 2012, the location most in demand was the Pearl-Qatar, which 140 150 continues to be Dohas prime development. As new amenities are 110 delivered and rental levels remain competitive in comparison to 100 other locations, the Pearl-Qatar is preferred by many expatriates.
18,000 20,000 11,000 12,500 13,500 10,250 10,500 13,000 10,250 10,250 12,000 9,750
Location
QAR/pm
Najma
11,000 13,000
6,500
10,500 10,500 9,250
QAR/m2/pa
7,000
9,750
13,250 6,375
105
5,500
Bin Demand for one Al Waabtwo-bedroom apartments Hamour especially Khaled Omran and Al Dafna Al Hilal Abu was Ain 3 BR 4 BR Old Airport 5 BR 50 strong in this location.
West Bay
Al Gharrafa
5,500 6,250
Al Khraytiyat
6,250
6,500 16,250
If demand continues at this level and, assuming no new towers or phases are delivered, rental levels for the best congured 0 A Ring Road apartments mayWest Bay a small increase during Q2 2012. C Ring Road witness
Pearl-Qatar
D Ring Road
13,000
Old Doha Airport Road Average Apartment Sales Prices (Q1 2012)
18,000
QAR/pm
18,000
20,000
11,000
12,500
13,500
10,250
10,500
13,000
10,250
10,250
12,000
11,000
13,000
22,000
23,000
18,500
22,000
26,500
10,000
13,000
9,750
9,000
8,000
Viva Bahriya-Pearl
Lagoon Plaza
Al Dafna
Al Waab
Al Hilal
Abu Hamour 3 BR
Ain Khaled 4 BR
Al Khraytiyat
9,250
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Average Apartment Sales Prices (Q1 2012)
02
QA
18,000
20,000
11,000
12,500
13,500
10,250
10,500
13,000
10,250
10,250
12,000
11,000
13,000
22,000
23,000
18,500
22,000
26,500
10,000
13,000
Al Dafna
Al Waab
Al Hilal
Abu Hamour 3 BR
Ain Khaled 4 BR 5 BR
West Bay
Lagoon Plaza
Primary Market
News Round-Up
Qatar Railways Company (QRC) to issue rst set of contracts
Announced this quarter was a statement from Deputy Chief Executive Ofcer, Geoff Mee, that four tunnelling RFP (request for proposal) contracts, each worth USD 2-3 billion, will be issued in the rst week of April and work will be awarded in October. Asteco remains of the view that the nalisation of the rail network plans and the implementation of Phase 1 is a major factor that will fuel the full recovery of Qatars real estate market. The scheme will have a positive effect on values and best use will require a re-evaluation of land surrounding the rail hubs. Furthermore, the residential, retail and ofce sectors are likely to see increased demand as population growth is driven by the awarding of infrastructure contracts and subcontracts.
www.astecoreports.com
10,500
9,750
9,000
8,000
9,250
03
Leasing Asteco is the leading leasing agent in the Qatar and is the sole agent for a number of key developments locally and throughout the region.
Property Management Asteco manages corporate portfolios as well as local and international funds throughout the UAE and region.
JORDAN
DOHA
Qatar
Dubai
Abu Dhabi
Al Ain
Northern Emirates
Jordan
Jed Wolfe BSc MRICS Managing Director - Asteco Qatar Associate Director, Regional - Saudi Arabia, Qatar & Bahrain +974 4411 3818 JedW@asteco.com
Omar Kabbara Senior Sales and Leasing Manager +974 4411 3818 OmarK@asteco.com
Chris Murphy BSc FRICS Head of Research, Consultancy and Valuations +974 4411 3818 ChrisM@asteco.com
DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable, however, no warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Managements judgment, as of the date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the Dubai market. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Managements control. For a full in-depth study of the market, please contact Asteco Property Managements research team. Asteco Qatar (LLC). Commercial Licence No. 38137. Paid-up Capital QAR5,000,000.
www.astecoreports.com