Qatar Real Estate Report Q3 2013

AL- ASMAKH
REGENCY GROUP HOLDING
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REAL ESTATE DEVELOPMENT
VALUATIONS AND RESEARCH
Regulated by RICS
Qatar Real Estate Report
Q3 2013
© Copyright 2013, Al Asmakh Real Estate Development
Cert.n.AJAEU/12/12637
Qatar Real Estate Report
Q3 2013
Al Asmakh Real Estate Development Co.
(AREDC) is an ISO accredited multidisciplinary
real estate consultancy firm formed on the
foundation of exceptional, personalized services.
With years of experience in the Qatar real estate
market, AREDC offers high quality services to
include: selling, renting, marketing, asset
management, property portfolio management
along with valuations, research, financial and
investment consultancy.
AREDC advisory team works closely with clients
to help them understand where to invest, the
risks involved and what benefits to expect. We
have a dedicated team with industry knowledge
and access to sophisticated techniques which
enable us to provide expert and professional
advice on developments, from the smallest to the
world's biggest and most ambitious.
We understand the requisites of highest
standards in rendering consultancy services:
hence, our department follows guidelines issued
by RICS (Royal Institution of Chartered
Surveyor), and International Valuation Standards
with the consideration of IFRS.
With an obsession for professional ethics and
principles, AREDC delivers extra value to clients.
Uncompromising adherence to the laws of the
country and a commitment to the highest quality
standards set AREDC apart from other competing
firms. One of the greatest benefits in working with
AREDC is the dependable service that clients
receive. AREDC’s complete management solutions
and proactive oversight ensures that it will
continue to hold the position as the leading real
estate firm within the State of Qatar.
For any query regarding this report, please contact:
Fadi Barakeh
General Manager
E: [email protected]
P: (+974) 4448 5111
Gaurav Borikar, MRICS
Head of Valuations and Research,
Principle Author
E: [email protected]
P: (+974) 4448 5139
1
Qatar Real Estate Report
Q3 2013
Macro Economic Overview
Q2 2012 Q2 2013
GDP at Current
Price
Govt. Budget
(% of GDP)
Gross Value Added
* Mining and
Quarrying Sector
* Non-Mining and
Quarrying Sectors
USD
USD
170.719 bn 181.074 bn
5.0%
13.4%
USD
USD 100.31
99.84 bn
bn
USD
USD
70.88 bn
80.76 bn
Consumer Price
Index
Inflation
110.7
1.1%
3.5%
Qatar Exchange
Index
8,123.02
9,275.56
Total Domestic
Credit (Mn QR)
Real Estate Credit
(Mn QR)
Repo Rate
431,136.8
497,770.2
81,976.5
78,954.9
Lending Rate
(3yrs & above)
Deposite Rate
(1yr+)
Gold Rate
(USD/oz)
Silver Rate
(USD/oz)
114.5
4.5%
4.5%
4.32%
5.28%
2.48%
2.03%
1,599.10
1,240.90
27.49
19.66
PS:
AllAll
above
data
is accurate
of 30
June
2012
PS:
above
data
are as onas30th
ofthJun
2012
andand
JunJune
20132013
Compared to Q2 2012, Qatar GDP
surged by 6.06% and reached to USD
181.074 bn in Q2 2013. Qatar has been
moving towards FIFA 2022 and as part
of the preparation, government
investments in infrastructure projects
have been increasing. The budget at last
year was 5% of GDP at current price,
which increased to 13.4% in Q2 2013.
Remarkably, the non-mining and
quarrying sectors have been behaving
much better; the growth over a year is
nearly 14%, whereas the mining and
quarrying sector demonstrated a
growth of 0.5%.
In Million of QAR
Ref: The World Bank / QSA
Inflation Rate
Consumer Prices (Annual %)
Inflation has taken over significantly
between Q2 2012 and Q2 2013, it
surged by 2.4%.
Between the end of 2010 until April
2013, Qatar Exchange Index was in
the range of
8,000 to 8,800;
however, in May 2013, it crossed
9,000 for the first time.
Ref: The World Bank
Qatar Exchange
The repo rate remains stable at 4.5%. An
increase can be seen on medium to the
long term lending rate and deposit rate.
QAR 12.8 bn worth of real estate
transactions took place in Q3 2013;
total transactions in 2013 until now
reached to QAR 33.3 bn.
Real Estate Transactions
Ref: MOJ
Gross Domestic Product
Ref: QCB
Real Estate Price Index
Ref: QCB
Credit Facilities
Ref: QCB
In Million of QAR
2
Qatar Real Estate Report
Q3 2013
Residential Market Overview
Available Residential
Constructed Units
Residential is one of the most prominent segments in the Qatar real
estate market. Over the last few years, residential properties have been
giving stable and remarkable cash flow to investors. The demand for
new properties have been surging due to the increased population.
Similarly, the demand from retail and institutional investors for
residential properties have been considerably increasing, however, due
to lack of adequate supply properties are merely changing hands without
contributing much in new supply within the residential market.*
Apartment prices in Q3 2013 surged by around 5% compared to the
previous quarter. An apartment in The Pearl, which was available at an
average price of QAR 14,000 per sq.m is now offered at an average price
of QAR 15,000 per sq.m. In addition, the average price for 2BR apartment
has increased to QAR 3,350,000 from QAR 3,200,000. Similarly but not
equally, substantial growth can be seen in West Bay and usufruct areas as
well. Due to very limited supply within usufruct areas, the demand from
retail investors for an apartment remain top of the mark.
Ref: QSA
Average Freehold and
Leasehold (usufruct) Sales Price
The trend in sale prices for apartment have been surging ever since 2011.
Unlike neighboring countries, this appreciation is stable and continuous.
Return of Investment from residential properties are in the range of 6% - 8%,
one of the highest in the Middle
Residential Market Gauge
East. Owing to higher demand, well
maintained properties give higher
Q2 13
Q3 13
and persistent return than those
which are not maintained well.
Ref: AREDC Research
Prices are in QAR/Sq.M on BUA
Apartment Sales Price – Trend
Unit Sales
Rental Trend
Occupancy
Overall Market
Current Gross Annual Yield
Qatar has limited areas which are
marked under freehold and
usufruct status. Aside from The
Pearl, villas that are for sale
available
for
expatriates
to
purchase is extremely rare.
Standalone
villas
and
villa
compounds located in nonfreehold areas are similarly less
available for sale owing to higher
occupancy rate and decent, yet
persistent, return of investment
from
rental
market,
though
demand from local investors are
high for such properties.
Ref: AREDC Research
Ref: AREDC Research
Prices are in QAR/Sq.M on BUA
Apartment Avg. Sales Price –
Unit wise
Ref: AREDC Research
Prices are in QAR
* We have omitted the projects from Lusail whilst writing this statement.
3
Qatar Real Estate Report
Q3 2013
Residential Market Overview contd.
Average Rental in Apartments
in Prime Areas
Prices are in QAR/Month
Ref: AREDC Research
Average Rental Trend of 2BR
Apartments in Prime Areas
Ref: AREDC Research
Prices are in QAR/Month
Real Estate Cycle
Recovery
Slow down
Recession
Bottom of Cycle
Rents
Owing to luxurious living, apartments
in The Pearl remain one of the priciest
in terms of rental, this can be followed
by apartments in West Bay. An
average monthly rental for 2BR
apartment in The Pearl is QAR
15,000, whereas, similar apartments
at West Bay is QAR 13,500.
Demand Factors
D e m a nd Inf lue nc e s
Effect
Increasing rents/prices
+
Limited availibility o f apartments
+
Changes in market size (e.g.,
po pulatio n, emplo yment)
+
Changes in per capita inco me/wealth
+
In terms of apartments, usufruct
Limited tempo rary acco mo datio n
+
areas such as Al Sadd, Bin
Fo rego ne future supply in apartments
Mahmoud, Musheireb, Rawdat Al
Ref: AREDC Research
Khail, Umm Ghuwailina and so forth
remain favorite locations for budget households. The average monthly
rent for an apartment may vary between QAR 7,000 to QAR 12,000.
Peak of Cycle
Boom
The most desirable residential
accommodation is 1BR and 2BR
apartments. In Q2 2013, the
appreciation in rental for such
properties across all areas were in
the range of 2% - 5%.
Sales
The most anticipated locations for villa compounds are Al Waab, Salwa
Road, Madinat Khalifa, Al Gharraffa and so forth. 3/4BR villa in such a
compound may be available at a monthly rental of QAR 13,000 to
QAR 18,000 depending on the specification and location of
the compound.
The overall residential segment within Qatar is progressive and growing.
New villa compounds may be required to be built in neighborhood
areas of Doha. Rental and sale market seem to be performing well in
upcoming quarters.
4
Qatar Real Estate Report
Q3 2013
Office Market Overview
The office market in Qatar is still in its initial stage of growth. Unlike
other neighborhood GCC countries where office and business districts
are spread across the country, Qatar has a concentrated office market
which is mainly operated from Doha. Grand Hamad Street can be
considered an old CBD of Doha whereas West Bay can be pronounced
a new CBD. Although multibillion dollar Lusail project may take over
old CBD upon its completion.
Nevertheless, the demand for new office acquisition is dependent upon
the occupiers’ profile. For example, multinational companies tend to
take offices in West Bay whereas local businesses are still inclined to
obtain offices on C&D Ring road, Al Sadd, Airport Road and so forth.
Commencement of Barwa Commercial Avenue which accommodates
offices, retail shops, residences, and a mall, offers 910,000 sq.m state of
the art facilities. Approach to Airport and Industrial Area makes it one of
the most desired destinations for larger and medium size businesses.
Due to premium specifications, offices in West Bay are always in
demand, however, due to higher rental and maintenance costs, the
occupancy level remains at 65%. On the other hand, offices located at
C Ring Road, Airport Road, Al Sadd and Salwa Road have been attracting
new businesses owing to lower
monthly obligation and easy
Office Market Gauge
approach to areas surrounding the
Doha city centre. A majority of
Q2 13
Q3 13
offices in such locations contain
the specification of type B
Unit Sales
category, though new towers on
Rental Trend
Suhaim Bin Hamad Road offer
type A offices.
Available Office Space
Distribution
Ref: AREDC Research
Demand-Supply-Vacancy
Ref: AREDC Research
Average Office Size
Occupancy
Due to on-going infrastructure
development throughout Doha,
many office complexes have been
restructured in areas in and
Ref: AREDC Research
around A Ring Road. Therefore,,
.such business groups have been moving towards C&D Ring Road,
Airport Road and Salwa Road. Occupancy level of office spaces in
such areas is as high as 80%. Nevertheless, due to premium rents,
recently completed towers located in these areas are proven
unsuccessful in attracting new occupants.
Overall Market
Supply Analysis
Businesses always want to upgrade their offices; buildings which
offer better facilities at reasonable rents have higher occupancies
with decent yield on the investments.
Ref: AREDC Research
NLA in Sq.m
5
Qatar Real Estate Report
Q3 2013
Office Market Overview contd.
Average Rental in Prime Areas
Ref: AREDC Research
Prices are in QAR/Sq M/Month
Current Gross Annual Yield
Ref: AREDC Research
Real Estate Cycle
Peak of Cycle
Boom
Recovery
Slow down
The office buildings in West Bay
offer premium facilities to their
occupants, however, owing to
larger offices with an average size
of 600 sq.m, an occupier has to
pay
an
average
rent
of
QAR 132,000 per month. Offices
at C Ring Road can be leased at an
average
monthly
rental
of
QAR 45,000. Salwa Road offers
smaller size offices at an average
monthly rent of QAR 120 per
sq.m, therefore, the average rent
per
month
would
be
at
QAR 18,000.
In terms of annual gross yield,
office
buildings
located
in
Al Sadd and C Ring Road may
fetch up to 8%; similar buildings
located at D Ring Road and
Airport Road may give a gross
return of up to 7% annually. West
Bay office towers may stretch an
average gross annual return of 6%
to their owners.
Average Rental - Trend
Ref: AREDC Research
Prices are in QAR/Sq M/Month
Demand Factors
D e m a nd Inf lue nc e s
Effect
Stabilized rents/prices
-
A ccess available o ffice space
-
Changes in market size (e.g.,
po pulatio n, emplo yment)
+
Changes in per capita inco me/wealth
+
Limited medium size o ffice space
+
Immense future supply in apartments
-
Ref: AREDC Research
The highest return can be experienced in those buildings which has
medium size offices with proposition of type B category. Such
offices are always in demand if their locations are C Ring Road, Al
Sadd and Al Dafna.
Recession
Bottom of Cycle
Rents
The average monthly rental of office
spaces in West Bay is nearly
QAR 220 per sq.m, C&D Ring
Roads command QAR 120 –
QAR 150 per sq.m. Barwa
Commercial Avenue may fetch
QAR 120 – QAR 140 per sq.m in an
office segment.
Due to on-going and proposed changes in Doha city centre areas, the
change of existing business dynamics owing to FIFA 2022, as well as
lucrative opportunities to new businesses within Qatar, in the long term
office market may behave optimistically. The current supply of offices,
especially in West Bay, C Ring Road, and Barwa Commercial Avenue,
may drag office rental rates down in the upcoming two to three quarters.
The office market may remain stable in Q4 2013.
6
Qatar Real Estate Report
Q3 2013
Retail Market Overview
Within Qatar, the retail market can be segmented into four basic zones:
malls, souqs, hypermarkets and unorganized shops. Unorganized retail
secures 70% of total retail space, although, no further supply can be
expected as per Doha town planning scheme. Qatar government focuses
more on malls and traditional souqs developments; a total of 10 new
malls within Qatar are at various stages of construction and 3-4 malls are
at planning stage.
The top three malls – Villagio, City Center and Landmark secure almost
50% of overall shopping activities amongst the mall segment. For
grocery and day-to-day shopping, hypermarkets are preferred over
malls. Hypermarkets such as Lulu, Safari Mall, Family Food Center and
Grand Mall have been doing very well in terms of attracting foot falls.
Hypermarkets comprise of around 158,000 sq.m, which is nearly 5% of
total retail supply.
Available Retail Constructed
Space
Ref: AREDC Research
Distribution of Retail Spaces
in Malls
Approximately 550,000 sq.m net leasable area is expected to be
delivered on and near Al Shamal Road. This is 53% of expected supply
and 96% of existing net leasable area of 13 operational malls.
Qatar has clear classification on retail shopping experience.
Salwa Road and Barwa Commercial Avenue are preferable for larger
establishments such as car and
furniture showrooms. These areas
Retail Market Gauge
offer better parking facilities for
visitors which is unlike most
Q2 13
Q3 13
parts of Doha.
Ref: AREDC Research
Total Leasable Area
Available in Malls
Rental Trend
Occupancy
Sentiments
Overall Market
Supply Distribution in
Upcoming Malls
Areas such as C&D Ring Road,
Al Sadd, Bin Mahmoud and Al Nasr
comprise of branded retail shops
whereas Old Town Area is for
budget stores.
Approximately 1,500 food joints,
restaurants
and
coffee
shops
comprise nearly 30% of unorganized
retail spaces within Doha.
Ref: AREDC Research
Area in Sqm
Proposed Leasable Area
in Upcoming Malls
The traditional concept of glamor
and residential locations for retail
have changed after the successful
opening of Grand Mall Hypermarket.
This hypermarket is located near
Industrial Area and focuses on
bachelors rather than households.
Ref: AREDC Research
Ref: AREDC Research
7
Qatar Real Estate Report
Q3 2013
Retail Market Overview contd.
Average Rental in Prime Malls
Ref: AREDC Research
Prices are in QAR/Sq M/Month
Average Rental in Retail Shops
Ref: AREDC Research
Prices are in QAR/Sq M/Month
All prominent malls have perpetual
commitments from their existing
occupants which transform into high
occupancies. Owing to this reason,
the rentals across all malls have
remained virtually stable since 2011.
Villagio, City Center and Landmark
commands premium in rental rates;
the average rent may fetch
QAR 280 per sq.m per month.
However, rents in other malls are in
the range of QAR 200 to
QAR 250 per sq.m per month.
In terms of retails shops, the highest
rental can be found in Al Sadd with
an average of QAR 250 per sq.m per
month. C Ring Road and Salwa
Road may fetch an average rent of
QAR 200 per sq.m per month. Old
Town, where large number of shops
have been rented out to a single
tenant since more than 20 years, the
average monthly rents are in
the range of QAR 150 – QAR 180
per sq.m.
Average Rental Trend in
Prime Malls
Ref: AREDC Research
Demand Factors
D e m a nd Inf lue nc e s
Real Estate Cycle
Peak of Cycle
Boom
Recovery
Slow down
Recession
Bottom of Cycle
Rents
Prices are in QAR/Sq M/Month
Effect
Stabilized Rental
+
Demand driving factors such as
stabilised occupancy rate and
Stabilized Occupancy
+
rentals in malls play a vital roll in
Changes in market size (e.g.,
+
po pulatio n, emplo yment)
organised retail segment. With
Changes in per capita inco me/wealth
+
Qatar’s secured status as the world’s
Layo
ut
and
B
rand
M
anagement
richest country, its ever increasing
Immense future supply
per capita income replicate into
Ref:
AREDC
Research
higher
disposable
per
capita
income. Therefore, the inclination
towards shopping and eating out are higher compared to other
GCC nations. Owing to this reason, retailers within malls and
hypermarkets have been doing well and are comfortable to pay monthly
rents without compromising their locations. Fashion and luxury stores
contribute about 38% of overall space within a mall.
Overall, the retail segment in short to medium run looks stable.
Upcoming supply which is likely to be delivered in the next 2-5 years
may impact pessimistically in organized retail segment in longer term.
Hypermarket, souqs and retails shops may not experience much changes
in rents and occupancies.
8
Qatar Real Estate Report
Q3 2013
Hospitality Market Overview
As Qatar moves closer towards FIFA 2022 World Cup, the pressure on
hoteliers to deliver additional keys have been increasing. Efforts of
Qatar Tourism Authority to attract households of neighborhood
countries to celebrate their Eid holidays show that Qatar is to not only
remain as a business destination but also gradually develop its image to
a leisure destination.
Qatar has a total of 94 hotels of various categories which deliver
around 16,741 rooms. Luxury segment dominates nearly 85% of total
room supply within hotels and 75% of overall hospitality segment.
Owing to increase in family tourism, the service apartments have been
increasing in popularity. For example, under construction Grand
Merweb, a luxury hotel, has kept an option of service apartments.
Many executives within Qatar choose to stay in hotel apartments on
account of better lifestyle and hassle free living.
5-Star segment has a total of 31 hotels with 7,411 rooms with a hotel
consisting an average of 240 rooms. Similarly, the average amount of
rooms in 4-Star category hotel is 260 and in three star hotels is 81.
Virtually 4-Star hotels should have lower average rooms per hotel,
however, due to Ezdan Towers and Suite, which is the biggest
.
hotel within Qatar and comprises of
2,200 keys, the room average
increases within the 4-Star category.
Hospitality Market Gauge
Q2 13
Q3 13
ADR
Occupancy
RavPAR
Overall Market
Distribution of Hotels by Rating
Ref: AREDC Research
Existing Hotels/Service Apts.
Ref: AREDC Research
Rooms Available in Premium
Segment
Remarkably, a group of five
boutique 5-Star hotels located
within
Souq
Wakif
has
an
average of 24 rooms. Inversely,
InterContinental Doha, The City,
which is also a 5-Star hotel located
in West Bay, comprise of 525 rooms
and holds the position of the largest
5-Star hotel within Qatar.
Ref: AREDC Research
Distribution of Segment by
Rooms (%)
Ref: AREDC Research
The major three hotel operating
groups,
InterContinental,
Movenpick and Retaj Hotels, have
more than one hotel within Qatar.
InterContinental offers 782 rooms
within
two
5-Star
hotels,
Movenpick has 501 keys among
one 5-Star and one 4-Star hotel;
Retaj operates 702 rooms from its
one 5-Star, two 4-Star hotels and
two service apartments.
Distribution of Segment by
Rooms (nos.)
Ref: AREDC Research
9
Qatar Real Estate Report
Q3 2013
Hospitality Market Overview contd.
Occupancy Rate/ADR/RavPAR
Ref: AREDC Research
ADR in USD
Qatar vs GCC countries for
Available Rooms Supply
Around 30% of hotels across all
segments do not serve alcohol,
although Qatar has been planning
to
attract
global
tourists.
Surprisingly, the impact of such a
step is not so significant in terms
of overall earnings of hotels
because many GCC nationals
incline to stay in nonalcoholic
hotels whilst travelling particularly
with family.
Third quarter of a year is generally
recognized as sluggish quarter due
to the high temperature season. In
Q3 2013, Average Daily Rates
across all segments came down by
5%-8% with an average decrease
of 10% in occupancy. RavPar
impacted down by 6%-8% across
all segments of hospitality.
After Saudi Arabia and United Arab
Emirates, Qatar has highest amount
of rooms followed by Bahrain and
Kuwait.
Ref: AREDC Research
Qatar vs GCC countries for
Future Rooms Supply
Ref: AREDC Research
About 29 luxury hotels are planned
within Doha and in adjoining areas of
Al Rayyan, Umm Salal and Al Wakra.
These hotels are likely to deliver
around 8,300 new keys which is 58%
of existing rooms available within
the luxury segment.
Future Hotel Supply in
Premium Segment
Ref: AREDC Research
Demand Factors
D e m a nd Inf lue nc e s
Effect
Stabilized A DR
+
Stabilized Occupancy
+
Changes in market size (e.g.,
po pulatio n, emplo yment)
+
Changes in per capita inco me/wealth
+
Limited no n premium ho tels fo r budget
travelers
+
Immense future supply
-
Ref: AREDC Research
Qatar contributes 9% of total future supply of keys within GCC countries.
UAE has highest amount of rooms under construction which is around
45% of GCC aggregate, however, Saudi Arabia may contribute 34%.
Qatar secured third place within GCC countries in terms of future rooms
supply. Bahrain, Kuwait and Oman would deliver keys in the range of
2% to 7%. Within GCC countries, a total of 92,300 rooms are currently in
different stages of development.
Overall stabilization of ADR and occupancies, increased business and leisure activities,
growing per capita income and globalization of country’s economy influence optimistically on
hospitality segment.
10
Qatar Real Estate Report
Q3 2013
Land Market Overview
Overall appreciation of land prices across Qatar within Q3 2013 is in the
range of 3-10%. Such appreciation shows that investors are fairly
interested in the land market.
The commercial lands located on C Ring Road, which were available in
Q2 2013 at around QAR 2,400 per sq.ft, now fetch as high as
QAR 2,800 per sq.ft, residential lands in a similar zone which was
offered at QAR 1,650 per sq.ft, may now reach up to QAR 2,000 per
sq.ft. Such appreciation is not limited to the lands located in prime areas.
Lands in Gharrafa and Madinat Khalifa with residential villa approval,
were obtainable at an average price of QAR 350 per sq.ft, and currently
the similar lands offered at QAR 400 per sq.ft.
Other municipalities such as Al Wakrah, where lands with commercial
approval were available at an average price of QAR 1,200 per sq.ft, now
may fetch as high as QAR 1,600 per sq.ft. Far further communities such
as Al Khor, appreciation in land prices is around 8%; correspondingly,
land prices in Umm Slal and Al Dayan surged by 5%-10%
in the last quarter.
On account of limited supply of freehold and usufruct lands which allow
purchasing by international investors, the majority of lands available for
sale are in non-freehold areas. Hence,
the land investors are mostly Qatari
Land Market Gauge
individuals and business houses.
Q2 13
Q3 13
Land Sales
Proposal for
Development
Overall Market
Distribution of Land by
Municipalities
Ref: QSA
Investor Demand by Purpose
Ref: AREDC Research
Investors’ genuine interest can be found in upcoming areas such as
Salwa Road and Al Shamal Road. Since there are vacant lands with
various approval available.
Qatar government is likely to announce a gazette where Qatari nationals
can own a residential villa land within Doha municipality at substantially
lower price than prevailing market rate. The implication on the market of
such gazette can be interpreted only upon its release.
Average Land Prices
At present, overall land market in upcoming quarters looks positive.
Ref: AREDC Research
Prices are in QAR/Sq.ft
11
Qatar Real Estate Report
Q3 2013
Project Analysis – “Barwa Commercial Avenue”
Project Factsheet
Description
Built-Up Area
Leasable Area
Office Leasable Area
Residential Leasable Area
Retail Leasable Area
Landmark/Plaza/Hotel Apts. Space
Parking Spaces (Underground)
Parking Spaces (Above Ground)
Apartments
Pre-segmented Zone
Zone Color Coding
Usage
JEERA
187,000
108,000
0%
48%
41%
11%
1,160
1,150
460
Community
Essentials
SAFWA
171,000
104,000
49%
0%
38%
13%
1,050
1,300
0
JOUD
138,000
60,000
18%
0%
74%
8%
745
990
0
Comprehensive
Furniture and shopping district
Home
with serviced
Decoration apartments and
business center
Residential & Retail
ARKAN
136,000
77,000
43%
0%
35%
22%
820
930
0
Total
(Sq.m)
910,000
519,000
179,870
51,840
219,750
67,540
5,575
6,170
460
SAYER
278,000
170,000
50%
0%
38%
12%
1,800
1,800
0
Home
General trading
Improvement
Commercial & Retail
Ref: www.thecommercialavenue.com
Zone wise Leasable
Area Distribution
Gross Leasable Area - 519,000 sq.m
Ref: AREDC Research
Usage wise Leasable
Area Distribution
Picturesque Layout
Gross Leasable Area - 519,000 sq.m
Ref: AREDC Research
Ref: The project brochure
Barwa Commercial Avenue (BCA) is the biggest mixed-use development of Qatar. The project is 8.5 km long
located in between Doha and Industrial Area, and within Zone No: 56 of Al Rayyan municipality of Qatar.
The total plot area of the project is approximately 495,191 sq.m, built-up area of the project is 910,000 sq.m,
and leasable area is 519,000 sq.m.
The project is low-rise mixed used development with pre-segmented zone for specific usages.
The development has 5 major zones named Jeera, Safwa, Joud, Arkan and Sayer. The project comprises of
residential apartments, office spaces, retail shops/showrooms and a shopping mall. BCA emphasizes more on
retail development which is about 42% of overall project and acquires nearly 219,750 sq.m leasable area.
About 460 apartments with 1BR, 2BR and 3BR accommodations are offered within zone “Jeera”. In order to
cater business needs, separate service apartments along with a shopping mall of NLA 56,600 sq.m are
constructed within zone “Joud”. To accommodate visitors, around 11,745 parking spaces are allocated across
basement and ground floor. Unlike first four zones which are for corporate, shopping and households, the
biggest zone of Barwa Commercial Avenue “Sayer” with a leasable area of 170,000 sq.m is assigned for
general trading to satisfy the need of neighboring Industrial Area.
12
Qatar Real Estate Report
Q3 2013
News Headlines of Q3 2013
Ezdan opens first phase of City project with 1,300 housing units: EZDAN Holding Group has completed the first
phase of Ezdan City in Wakair area, which houses over 1,300 residential units for the corporate sector, according
to a recent press release.
The second phase is likely to be allocated to families only, and the opening is expected to be announced during
the first quarter of 2014.
Under the initiative, more than 500 local and international companies have signed agreements with Ezdan
Group to benefit from the housing complex. Ezdan CEO Ali al Obaidli said: Ezdan City project provides an
integrated environment with all the necessary services and many additional benefits in line with Qatar's progress.
The facility comprises a resident doctor and an ambulance for emergencies in addition to the organization of
educational seminars to raise awareness of foreigners to know about the customs and traditions of the country.
Ezdan City offers many other services including entertainment events, shuttle service to the workplace in
collaboration with contracting companies and healthy food service that suits all nationalities.
Faraj pointed out that the company took into account the provision of many services for residents, saying that
units are available at very competitive prices and fully furnished.
(Ref: Qatar Tribune Sep 17, 2013)
Real estate deals increase: Witnessing a new jump, the combined value of 299 real estate deals inked
during the third week of this month (from September 15 to 19) reached QAR 1.33bn ($365m) up 54.5
percent compared to QAR 859.5m ($236m) during the previous week. The value of daily rate of transactions
was about QAR 265.6m ($72.94m) compared to QAR 172m ($47.23m) the previous week, according to
Ezdan Holding’s latest weekly report.
The combined value of real estate transactions in the Doha Municipality, with 55 deals, stood at
QAR 7,527.7m, registering an impressive double digit growth of 56.7 percent as compared to QAR 444.9m
during previous week.
The land plots and other various real estate properties shared the transactions by 53.5 percent and 46.5
percent, respectively. Al Sadd area (under Doha Municipality) witnessed an exceptional transaction with the
total value of a villa sold at QAR 315m, and a plot in the same locality with an area of 2, 208 square metres
(sqm) was sold at QAR 78.7m, at the rate of QAR 35,700 per sqm, according to the report based on the
weekly bulletin issued by the Real Estate Registration Department in the Ministry of Justice.
(Ref: The Peninsula Sep 27, 2013)
Infrastructure spending to narrow fiscal surplus: The pick up in Qatar’s infrastructure project is expected to
narrow the country’s fiscal surplus from a record 14.2 percent of GDP in 2012-13 financial year to 9.0
percent in the current fiscal.
Qatar’s fiscal surplus during 2012-13 increased to a record $27.4bn according to the preliminary figures.
This is more than double of last year’s surplus of $13.2bn and equivalent to 14.2 percent of GDP. The
country has posted a surplus every year since 1999-2000. But with the investment activity picking up by an
estimated 30 percent up during the first half of 2013, there will be a huge contraction in the fiscal surplus, a
Q3 2013 economic update on Qatar released by NBK noted yesterday. While Qatar’s total revenues
increased by 24.7 percent over the previous year to $76.3bn, total expenditures grew by only 2.0 percent to
$48.9bn, significantly below the increase in spending recorded the year before and during the last five-years
on average.
Earlier in the year, the report noted, Qatari authorities announced an expansionary budget for 2013-14 in
which total spending was likely to increase by 18 percent on the previous year to $57.9bn and total
revenues by 5.7 percent to $60.0bn. The government also forecast increasing its development spending by
20.6 percent. Having come under budget last year, spending growth, led by development spending on
capital projects, is therefore likely to exceed budget estimates and outpace revenue growth resulting in the
narrow downing of fiscal balance over the next two years.
(Ref: The Peninsula Qatar Oct 02, 2013)
13
Qatar Real Estate Report
Q3 2013
Topic of the Quarter: RICS (Royal Institution of Chartered Surveyors)
RICS: The mark of property professionalism worldwide
Overview
With around 100,000 qualified members and over 50,000 trainees and students in some 140 countries,
RICS provides the world’s leading professional qualification in land, property, construction and associated
environmental issues. RICS aims to set and maintain the highest standards for its members, whilst operating
as an independent organization in the public interest: setting and regulating the highest standards of
competence and integrity among our members and regulated firms, and providing impartial, authoritative
advice on key issues for business, society and governments worldwide.
Serving the public interest
RICS was founded in London in 1868, and granted a Royal Charter by Queen Victoria in 1881. The Charter
requires the Institution “To maintain and promote the usefulness of the profession for the public advantage”.
This commitment to act in the interests of society in everything they do continues to be their guiding
principle.
Key Roles
• Setting the highest standards of academic achievement, practical training and continuing professional
development
• Accrediting over 600 courses at leading universities worldwide
• Setting and promoting international best practice in professionalism
• Regulating the profession through a principles-based state-of-the-art regulatory framework that works with
the grain of modern business life
• Providing a workable and robust framework of protection and redress for clients
• Leading-edge research into key issues in the built and natural environments
• Analyzing property and construction markets and their impact on economies
Regulation
RICS regulates individual members and regulated firms through a principles and risk-based regulatory
regime. The regime is overseen by the Regulatory Board which has a majority of independent members,
ensuring the highest standards of integrity and competence among RICS members.
For more details, please follow the website http://www.rics.org.
Definitions and Methodology
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IMF: International Monetary Fund.
QSA: Qatar Statistics Authority
QCB: Qatar Central Bank
MOJ: Ministry of Justice
IIF: The Institute of International Finance
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Market Gauge
- Bettering as compare to previous quarter
- Remained stable as of previous quarter
- Reducing as compare to previous quarter
Available Constructed Units refers to those units which are completed and either sold, leased out or in vacant possession.
Average sales price: The most likely price to be obtained in particular area in normal sales conditions.
Average Rental: The most likely rental to be achieved in particular area in normal sales conditions.
Average office sizes: The most likely size available in particular area in normal market conditions.
Prominent Buildings: The buildings which are famous owing to popularity.
Main Malls: Malls which are famous owing to popularity.
GLA: Gross Leasable Area
BUA: Built Up Area
NLA: Net Leasable Area
14
Qatar Real Estate Report
Q3 2013
Fadi Barakeh
General Manager
E: [email protected]
Gaurav Borikar, MRICS
Head of Valuations and Research
Principle Author
E: [email protected]
Contributors:
Khalid Yassin
Deputy General Manager
E: [email protected]
Feras Al Khatib
Head of Sales Department
E: [email protected]
Rami El Fares
Senior Sales & Marketing Manager
E: [email protected]
Neveen Haroun
Leasing and Business Development Manager
E: [email protected]
Tony Allam
Head of Escrow Services [Title Conveyance Department]
E: [email protected]
Exclusive Disclaimer: This report has been
prepared by Al-Asmakh Real Estate Development
for general information only. No research source
is guaranteed to be accurate so the report.
Al-Asmakh Real Estate Development shall not,
in any event whatsoever, be liable or responsible
for the any indirect, incidental, special or
consequential losses or for any economic loss
including loss of profit, revenue, goodwill or
anticipated savings of the Bank or other Persons,
however caused and whether arising in contract,
tort (including active, passive or imputed
negligence) or otherwise.
© Copyright 2013 Al Asmakh Real Estate Development
AREDC Valuations and Research division offers
the following services:
Valuations (RICS compliant)
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Research
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Consultancy
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acquisitions
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services
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Fire and Safety
 Fire Safety
 IR (Infrared) and moisture Inspection
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 Pre-handover property checks
 Cost and estimate verification
Should you be interested in receiving our
forthcoming reports at your mailing address,
write back to us on:
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Web: www.alasmakhrealestate.com