Five trends that will drive Qatar’s real estate sector in 2022

28 February 2022 Consultancy-me.com

New research by PwC has uncovered the main trends that are set to drive growth in Qatar’s real estate sector in 2022 and beyond. The report’s authors – Kamal Fayed, Martin Berlin, Mohammad Homoud, Lama Zammo and Hafsa Nadeem – walk through the top five drivers and their expected impacts.

Covid-19 pandemic

The Covid 19 pandemic has led to disruption across industries globally and regionally. Yet despite the headwinds caused by the restrictions and travel embargoes imposed to control the outbreak, Qatar has demonstrated remarkable resilience.

The post-corona landscape will necessitate that industries calibrate and re-adjust their strategies more frequently than ever before in order to keep up with the changes in today’s business landscape. The rise of e-commerce and remote working have changed what was once considered the ‘norm’ in the real estate industry. The increased adoption of hybrid work styles is expected to reshape workspaces.

Kamal Fayed, Martin Berlin, Mohammad Homoud, Lama Zammo and Hafsa Nadeem

FIFA 2022 World Cup

A positive outlook for the real estate industry is particularly supported by the FIFA 2022 World Cup, taking place from November 21 to December 18.

The World Cup, which is expected to draw hundreds of thousands of spectators from around the world, has been at the heart of Qatar’s economic plans and served as a source of optimism during the downturn. Amid a raging pandemic and political tensions, the event remained a source of hope for the public as well as the economic decision-makers.

Overall, with an expected influx of tourists into the country, hotel occupancy rates and revenue per available room (RevPAR) are expected to increase, boosting the hospitality sector.

The World Cup is not only an auspicious strategic instrument as a stand-alone occasion, but also an invaluable growth driver for a thriving economy beyond 2022 and an integral part of Qatar National Vision 2030. The tournament will support Qatar in achieving long-term urban development and economic diversification goals and strengthen its appeal as an investment destination.

Tourism

Qatar and nations in the world are increasingly focusing on tourism. Following a sharp drop in revenue per available room in 2016, Qatar shifted focus to diversifying its economy through development of local attractions such as the Qatar National Museum. Further, visa-free entry was granted to nationals from 88 countries, contributing to Qatar’s image as one of the world’s most open countries.

Three key indicators of the health of the tourism industry ‒ occupancy rates, average room revenue and revenue per available room ‒ all improved between H1 2020 and H1 2021, respectively gaining 7%, 16% and 24%.

With the World Cup ahead and ties with neighboring countries restored, arrivals are set to surge.

Sustainability

Qatar’s real estate industry is on track to reduce its carbon footprint and pave the way for a greener future. Three of the country’s recent major projects ‒ the Doha Metro, Msheireb Downtown and Lusail City ‒ incorporated Qatar’s sustainability agenda into the core of their development plans, as evidenced by their emphasis on renewable energy solutions such as on-site energy generation, LED lighting systems and carbon dioxide monitors.

Qatar’s commitment to sustainability is also reflected in World Cup preparations. FIFA’s 2022 stadiums are on track to receive at least a 4-star GSAS rating (Global Sustainability Assessment System) in categories such as design, construction, energy and water usage.

Further reading: Businesses are upping sustainability expectations of landlords.

Property technology

Property technology (PropTech) is an important tool that can complement Qatar’s vision of sustainability through real estate and accelerate the growth of the industry. It is a domain that should be explored further. The real estate industry has a long history of being resistant to digital disruption but such an approach is outdated in an era when agility has become a key competency for industries around the world.

PropTech’s potential penetration into the real estate market is exemplified by big data, which can provide insights that inform policymaking and project planning, while also improving the performance of internal building systems such as electrical infrastructure; artificial intelligence, which can more accurately predict pricing trends; and virtual reality, through which potential buyers could receive an immersive tour of a property even before construction begins.

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