Valustrat Qatar Real Estate Research Q4 2019
www.valustrat.com Real Estate Market 4th Quarter | 2019 Review VPI ValuStrat Price Index Residential The fourth quarter 2019 ValuStrat Price Index (VPI)-Residential, displayed an overall 5.0% annual and 0.8% quarterly decline in capital values. Villa and freehold apartment prices saw marginal QoQ declines of 0.5% and 1.8% respectively. Amongst freehold apartments, The Pearl witnessed the highest overall decline in values followed by West Bay Lagoon and Lusail. A quarterly capital depreciation of less than 2% was observed in clusters of Ain Khaled, Abu Hamour, West Bay Lagoon, Umm Salal Ali and Al Khor. The remaining clusters experienced no change in capital values. Gross yields for residential units averaged at an overall 5.0% adjusted by 6.1% for apartments and 4.5% for villas. VPI - Qatar Residential Capital Values 13 Villa and 3 Apartment Locations [Base: Q1 2016=100] 120 100.0 100 96.3 94.2 90.9 89.8 87.2 84.9 82.7 81.3 77.7 75.8 75.0 80 73.4 72.8 71.8 71.2 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019 Source: ValuStrat 1 | Qatar Real Estate Market 4th Quarter 2019 Review Macro-Economic Snapshot • International Monetary Fund (IMF) projected Qatar Population real GDP of Qatar to grow by 2% in 2019 on the back of robust non-hydrocarbon sector growth and oil and gas production recovery 2,773,000 2019-Q4 2,674,000 • The state budget for 2020 was announced 2018 which forecasted a budget surplus of QAR 500 million and expenditure in major projects at 2,641,000 QAR 90 billion, amidst a continued conservative 2017 oil price estimate of $55 a barrel 2,597,000 2016 • Population is estimated at 2.77 million as of Q4 2019.
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