The Council of Ministers’ decision to specify the areas and places in which non-Qataris are allowed to own real estate and benefit from it, sheds more light on the law allowing non-Qataris to own real estate in the country, which was confirmed by a number of real estate experts to “Lusail”, in light of the tempting opportunities to buy in the market, They described it as a positive step that would stimulate the local business environment, especially in the real estate sector, noting that the decision came in conjunction with a package of encouraging measures to attract foreign capital to the local market.
In their interview with Lusail, they indicated that the local real estate market has been waiting for the details of the decision to own real estate for non-Qataris for a long time, stressing that disclosing the details of the decision will add stability to the local real estate market during the coming period, in addition to clarifying the expected implementation mechanisms for real estate registration and issuance of bonds. The sale and other technical aspects whose approval is expected to give a more positive impetus to the law.
Khalifa Al-Maslamani: Attractive purchasing opportunities through a large and diversified offer of real estate
Real estate expert and appraiser Khalifa Al-Maslamani affirmed that the approval of the Cabinet’s draft decision defining the areas and places in which non-Qataris are allowed to own and benefit from real estate will undoubtedly have a strong contribution to the growth of the real estate movement and grant stability to an important segment of residents in the State of Qatar.
He pointed out that this would represent a qualitative addition to the Qatari real estate sector, while enabling Arab and foreign residents on the land of Qatar to buy real estate instead of directing it abroad towards buying real estate in Europe or other countries, and there is a large segment of residents who already want to invest in the real estate sector. Qatari, which enjoys a strong advantage, which is that there are no hidden taxes or fees for the investor, and therefore this represents a qualitative advantage compared to any other market.
Regarding the consequences of this on the market movement, Al-Maslamani indicated that there will certainly be an increase in the purchasing value and real estate transactions, in light of the large supply and the appropriate opportunity in light of the current prices of real estate, and this is also supported by the large increase in the urban area in the country, which will contribute to economic growth.
Youssef Al-Taher: Strong liquidity is expected through new segments in the real estate market
Real estate appraiser Youssef Al-Taher believes that there are a number of support factors enjoyed by the real estate sector in Qatar, especially after what the country has proven to be one of the safest countries in the world, which is the main attraction for investors who usually search for safe markets that guarantee their investments, as well as What the state has done in terms of its commitment to all its contracts, even with the besieging countries, sent an important message to the world that Qatar places the principle of law and commitment to contracts above everything else.
Al-Taher added that the residents of the State of Qatar will constitute an important segment of those who will go towards owning real estate in Qatar once the law is approved, especially since a large part of them is looking for more stability within the country, which can be done by owning a property in which they live instead of renting or even owning real estate. for the purpose of investment.
Al-Taher explained that the previous step of launching usufruct zones did not constitute the expected strong impetus, and now, of course, there are studies confirming that the real estate sector in Qatar has the necessary ingredients to attract more liquidity and open the door to non-Qataris owning real estate.
Al-Taher said: The law will be beneficial to residents and foreigners who wish to own property in Qatar, and at the same time it will benefit Qatar through strong liquidity entering the sector and investments that benefit everyone.
Muhammad Farghali: Legislative and regulatory amendments are expected to achieve the desired benefit
Muhammad Farghali, Executive Director of Utopia Real Estate Company, said that in addition to the desired positive results from the implementation of this decision, there are a number of technical aspects that need to be clarified during the coming period, which are related to machines and legislation that need to be amended and aligned to keep pace with the issuance of the law, for example, there is no sorting of villas within residential complexes. For the purposes of real estate registration, as well as the matter with regard to service places and commons within the residential villa complexes, there are also some amendments and legislation that will be required in the financial authorities and banks that allow opening accounts in the country without having a residence, as well as the mechanisms related to real estate financing and the ease of opening accounts.
As for the other aspect, it is related to the process of dealing with the non-Qatari investor in the real estate with regard to the procedures for owning it in the real estate and issuing documents and title deeds, because if we look at any successful and advanced country in the field of real estate, you will find in it one entity that enables him to conduct all transactions related to purchasing and registering the property and issuing title deeds. .
He stressed that the law will achieve great additional benefits if an entity is established to be responsible for issuing and analyzing data related to real estate sector trading indicators and actual selling prices and making them available to the public on all media platforms, as the current situation makes it difficult to obtain sufficient information about real estate market prices in different regions.
Dr. Al-Shirawi: The decision will revive the local real estate market during the coming period
Mohammed Al-Shirawi, a businessman and real estate expert, confirmed that the Cabinet’s decision to specify the places and areas in which non-Qataris are allowed to own real estate is a positive step in the right path to stimulate the local business environment, especially in the local real estate sector, pointing out that many countries now provide many advantages to investors in the real estate sector. Real estate, including Turkey, Spain, Cyprus and many countries.
And Al-Shirawi indicated that the decision has a positive impact on the real estate market in light of the negative climate in which the market is living, especially on real estate prices and rents, indicating that it will work to encourage investors to increase their investments in the real estate sector during the coming period.
And he indicated that the decision comes in conjunction with a package of measures that would attract foreign capital, explaining that the ownership decision will encourage the entry of foreign capital, which will be reflected in the movement of the economy and non-real estate activities such as tourism, trade and health.
And he indicated that the decision has other dimensions that could have a benefit for investors from different sectors, such as education at its various levels, health, practicing commercial activities completely freely, buying and selling stocks, and investing in portfolios offered in the financial markets, indicating that maximizing the benefit of the decision requires amending some procedures, legislation and laws. to make it more flexible.
Al-Marwani: It increases the competitiveness of the real estate sector and its ability to attract investment
between dr. Hamed Ahmed Al-Marwani, that the Cabinet’s decision to specify the places and areas in which non-Qataris are allowed to own real estate will have a positive impact on the investment climate in the real estate sector and a direct reflection on the desire of investors to invest and buy in different regions of the country, including Lusail and the Pearl, indicating that these decisions constitute a boost It is strong for non-Qataris wishing to own their homes, which will be reflected in other sectors of the Qatari economy, including retail, tourism, trade, services and other important sectors of the national economy.
Al-Marwani noted that the local real estate market has been waiting for the details of the decision to own real estate for non-Qataris for a long time, pointing out that disclosing the details of the ownership decision will be a pivotal factor in pushing the local market to stability, which will reflect positively on investors and the market during the coming period.
He explained that allowing non-Qataris to own real estate will increase the competitiveness of the real estate sector, especially in its ability to attract foreign investment, noting that these decisions will put Qatar on the map of countries that allow foreign ownership and real estate trading among foreigners.
He stressed that expanding the base of those allowed to buy real estate in the local market will be directly reflected in the quality of real estate offered in the local market, in addition to clear competition in real estate prices that non-Qataris will own in the future.
Al Jaidah: a direct reflection on real estate prices and construction activity
Real estate appraiser Ibrahim Al Jaidah confirmed that non-Qatari ownership of real estate is a real opportunity to advance the local real estate sector to better levels in terms of performance, pointing out that the decision will have a direct role in raising real estate prices in the country, which is still weak and below its levels.
And he indicated that the ownership of non-Qataris will achieve a boom in the local construction movement, as the demand for real estate and buildings will increase in the local market, which will prompt developers to increase the buildings offered for sale in the local market.
He explained that the recovery of the local real estate sector will have a direct role in the recovery of many other economic sectors, pointing out that the decision is positive and in the interest of Qataris and the national economy as a whole.
24.3 billion riyals real estate transactions in 2018
The cumulative real estate trading data, according to the data of the monthly bulletin issued by the Planning and Statistics Authority, indicates that last year witnessed transactions amounting to 24.3 billion riyals through the implementation of 4186 transactions.
The month of July of last year topped the list of months of the year in terms of the value of transactions by about 4.3 billion riyals through the execution of 429 deals. As for the number of executed deals, the list topped the month of April, during which 508 deals were executed, while January of last year recorded the lowest value. Transactions amounted to 1.16 billion riyals through the execution of 309 deals, while August of last year witnessed the lowest number of transactions amounting to 246 deals with a total value of 1.54 billion riyals.
The months of January and February of this year witnessed the implementation of 680 real estate transactions with a total value of 3.6 billion riyals, according to data monitored by “Lusail” based on the weekly bulletin of real estate transactions issued by the Real Estate Registration Department at the Ministry of Justice, which revealed that last January witnessed the implementation of 402 transactions with a total value. It amounted to 2.3 billion riyals, while last February witnessed the implementation of 278 transactions with a total value of 1.3 billion riyals.
Space land deals accounted for 36.5% of the total deals executed during the period, amounting to 248 deals, including 163 deals in January and 85 deals in February.
Al Rayyan Municipality topped the list of municipalities in terms of the number of executed deals, as it witnessed the execution of 136 deals, followed by the Doha Municipality through the implementation of 132 deals, then the Al Daayen Municipality with 116 deals, and the fourth came the Al Wakra Municipality, which witnessed the implementation of 81 deals during the months of January and February, then the Umm Slal Municipality through 65 deals were executed, 28 were executed by the North Municipality, 27 were executed in Al Khor and Al Thakhira, and finally Al Sheehaniya saw only two deals executed during the past two months.
Experts and bankers: Banks will set rules for real estate financing for foreigners
Experts and specialists familiar with the banking sector explained that after the issuance of a law regulating the ownership of real estate, it is expected that there will be several approaches to Islamic banks and banks operating in the country in order to finance the purchase of such real estate, whether for residents, or for foreigners from outside the State of Qatar who wish to enter the country and pump their investments in The real estate sector, where they explained that Islamic banks and banks will provide financing according to each category and target segment.
Banking data issued by the Qatar Central Bank indicate that the total non-Qatari financing within the private housing item reached about 806.6 million riyals at the end of January of this year, as Islamic banks and banks operating in the country provide appropriate facilities and financing to an important segment of the category of individuals residing in The state, in addition to providing financing to non-residents under various items.
In this context, economist Abdullah Al-Khater told Lusail that there will be many aspects regarding this issue.
The first case is that if the law primarily targets residents of the country, then one of the goals is to maintain liquidity within the country, in addition to providing the real estate sector with large and important liquidity, and many properties will begin to be registered by the original owners. Al-Khater explained that in the case of financing individuals, banks will set special rules and controls, but if the aim of the law is to attract a large group of investors from abroad, there will be controls and rules that regulate the borrowing and financing process for this group.
Al-Khater noted that the State of Qatar has a great ability to attract large institutions and companies, and therefore this law will contribute to overcoming many obstacles that facilitate the entry of foreign investments into the State of Qatar, adding that the entry of these investments and foreign ownership of real estate will open the appetite for the development of many real estate. In the State of Qatar, and thus achieving an important operational performance for Qatari Islamic banks and banks, especially since these properties will be inside the country, and the investment is guaranteed.
An informed banking source told Lusail that, based on clarifying the content of the law and directions, Islamic banks and banks, under the supervision of the regulatory bodies, will adjust their financing strategies in this context in line with the operational plans and banking performance in the country, especially since this decision will contribute to the development of the sector’s performance. Real estate in the country, and it will also contribute to attracting many foreign funds that will develop the real estate sector, and it can contribute to stimulating the performance of banks during the period that comes after the enforcement of the law on the ground.
Source: Lusail Newspaper