Market Trends of Qatar Infrastructure Sector Industry
The Government's Focus on the Construction Industry Boosting the Market
Government funding will be critical in aiding the building sector's growth. New projects worth QAR 53.9 billion (USD 14.80 billion) were highlighted in Qatar's 2021 budget. These infrastructure projects are expected to be approved between 2021 and 2023. The government intends to diversify the economy and create infrastructure by reducing its reliance on the oil and gas sector. Qatar has established free zones to diversify its economy, attracting businesses worldwide.
The passage of new legislation governing public-private partnerships (PPPs) will likely encourage the private sector's investment in infrastructure, educational institutions, and healthcare initiatives, hence promoting industrial growth through the forecast period. Investments in transportation infrastructure projects may also support growth during the forecast period. State-run Qatar Railways plans to begin construction of a rail line linking Qatar and Saudi Arabia later this year.
While some of the projects may have long-term consequences, the government currently has several measures in place with immediate advantages. The Qatari government has selected many priority projects for the medium term, with QAR 54 billion (USD 15 billion). Qatar may continue to invest heavily in initiatives that benefit the local economy, according to the Minister of Finance, who also stated that 22 new projects worth QAR 9.8 billion (USD 2.69 billion) will be executed in 2023.
Real Estate Supporting the Construction Industry
The COVID-19 pandemic impacted Qatar's economy and finances, causing the housing market to remain sluggish. Despite lower demand, supply continues to grow, resulting in lower residential property prices. The overall housing stock was about 304,715 units in Q1 2021, with 1,700 apartments and villas being constructed. Including project handovers in Lusail (Fox Hills and Marina District), The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz, 1,650 units were delivered by The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz.
Residential construction contracts were awarded during the third quarter at Lusail Waterfront, Marina, and Fox Hills, with 450 units projected to be completed by the end of 2022. About 6,300 units were in the pipeline for the remaining quarters of 2021. The total number of properties sold increased by 2.8% in October 2021, while the value of real estate sold increased by 28% over the previous year. The Qatari market is predicted to gain 13,500 residential units by the end of 2022, in addition to the 580 residential units added in the fourth quarter of 2021. Among the most recent constructions are 15 mixed-use buildings in The Pearl, apartment and mixed-use buildings in Qetifan North, 1,700 villas in Furjan Wadi Lusail, Al Yussum townhouses, two in Yasmeen City Lusail, and the Milos apartment complex in Legtafiya.
