The tiny Gulf Arab state is pouring billions of dollars
into civil infrastructure development to diversify the economy away from
hydrocarbons and accommodate its expanding population.
Over the next five years, Qatar plans to build a $25
billion rail network, an $11 billion new airport, a $5.5 billion new deep-water
seaport and a $1 billion crossing linking the new airport with mega-projects in
the northern part of Doha. It will also spend an additional $20 billion on new
roads.
"This spending will create a knock-on effect on the
rest of the economy, contributing to increased consumption and demand for
better quality housing, office and retail facilities," said Mark Proudley,
associate director at DTZ.
Qatar, the world's largest exporter of liquefied natural
gas, was one of the fastest growing economies worldwide in 2009. Its economy
grew at an average pace of 17.4 percent over the past five years and it is set
to largely outperform fellow Gulf oil producers in coming years.
"The retail market remains comparatively strong and
does not suffer from the oversupply characteristics at this time, which prevail
in the commercial office and residential markets. That market dynamic has led
to increases in average rental levels," the report said.
A Reuters poll in September showed that Qatar's economy
was likely to expand by 15.5 percent this year.
Some projects in Qatar have stalled recently due to the
property market slump. In August, Barwa Real Estate Co. said it delayed its Al
Khor project due to market conditions.
But Qatar has largely escaped the storm that pummeled
neighboring Dubai, with only minor injury due to state moves to control
development of new offices, shops and homes.
Signs of stabilization in Qatar's property market as well
as renewed investor confidence has led to a positive outlook for the sector
over the remainder of the year, the report said.
"Going forward we expect development to be more
market-led and less speculative. Landlords and developers will need to focus on
the core fundamentals of real estate; identifying their target market and
delivering a product which meets the requirements of the end users," it
said.
