The global coronavirus (Covid-19) has undoubtedly affected the entire world, nonetheless we have seen economies around the world take on significant measures to stop the virus. The State of Qatar introduced lockdown measures meanwhile supporting financial and economic sectors with incentives to aid businesses during this time.
“There are premises for the local Qatar real estate market to move further, even if the crisis seems to approach other similar markets across the globe”, stated Serban Spirea, MD and Founder of FGREALTY, real estate company in Qatar. In this article, Serban shares his views on the real estate market in Qatar despite the challenges.
Since the crisis what has changed in the residential sector and how has FGREALTY adapted?
Despite the support measures introduced by the government and as health and safety concerns increase, our leasing real estate consultants have resorted to virtual tours to market the properties. Nevertheless, we still assist clients who demand to see the properties keeping in mind the country’s regulations. Our first priority is to ensure our clients’ and agents’ health and safety remains of paramount importance. The commitment to customer service, ethicality, and integrity are always applied when responding to the health challenges presented by COVID-19.
Moreover, we have seen some negotiations taking place with landlords and tenants on residential and commercial relief granting tenants on deferring rental payments. Some landlords are extending temporary discounts of 20-30% to be paid back later, while the others are using a rent-free incentive –one or two months provided a renewed contract is signed/extended for up to two years. This is also a good time for residential occupiers to take advantage of the fallen rents and upgrade their accommodation or office bearing in mind; amenities and services in residential apartments have been requested to close and social distancing restrictions have been put in place making it slightly challenging. However, these restrictions are temporarily until we see a gradual lift of restrictions.
Activity of towers / new projects?
Newly built projects residential, commercial and retail are continuing to be released in the market. Mshereib City as one of the largest developments in the country to provide the highest standard of living and working in the middle of Doha. Abraj Bay to be released in The Pearl Qatar island by the middle of Q2 with an inventory of luxury townhouses having a private swimming pool and furnished apartments at the highest quality.
The current market condition will definitely have a challenging impact for the landlords that will not adapt and improve their assets standard of living for their existing and new potential clients.
Real estate market consists of new and safe building
Unlike other countries where the real estate market is formed out of mixed new and old buildings, Qatar is a newly built country at the highest standard of safety in construction and regulations about space size.
These characteristics make the properties appealing for the expatriates that look for a safe environment to live in.
Qatar is one of the safest countries in the world
According to the Number report in 2019, Qatar is the safest country in the world in a study carried out among 118 countries. Despite the challenges faced due to COVID19, employees look for certainties and safety. That might be a great argument for Qatar, implicitly for the rental market in Doha and Lusail City.
Buyer’s market
Being in challenging times, the real estate market adjusts based on the new phase and demand request changes. Social distancing made the demand to be increased for larger properties and outdoor facilities as a balcony, terrace, walking area, became a must.
Our clients, tenants and investors that have the experience of the market and understand Qatar’s vision have the confidence to make investing in real estate as an opportunity that today’s market offer consists of a variety of deals that could be found in 2008.
Does the pandemic situation change the face of the real estate market in Qatar? What clients should expect from apartments for rent in Doha, Qatar, for instance?
Residences for rent are in bigger demand than before the pandemic. You might ask me why? As per our clients, they have a feeling of changing their current living space with larger, much modern, and better-located apartments or villas for them and their family members.
The residential leasing head of the department has informed us that the demand for larger apartments with outdoor terrace and balconies are preferred by our clients.
As people worked remotely, do you believe that COVID- 19 is a proper time for technology development?
The technology was our main subject since we started working on our search engine platform in Qatar and continues to occupy a big space in our weekly calendars.
Personally I strongly believe that whoever hasn’t invested in technology until this moment suffers now. As a real estate marketing and brokerage platform, we must always master and invest in developing our way of doing business for landlords and clients at the same time.
During a crisis, leadership is a turning point for businesses to succeed. Do you see a shift in leadership styles these days?
Oh yes, that’s a good question. In tough times leadership is discovered or demolished, I always believed in that. I learn and do business continuously with our team associates and I must offer the confidence of being stable in challenging times and make sure they have the stability mindset.
