Qatar has to opt one, either "High Rent" or Strong Non oil businesses
Uncontrolled, high rents of offices, shops and apartments are the biggest humps for private businesses in Qatar.
While the govt. has been trying hard to promote non oil businesses, for the past several years, the very high rents have not actually allowed them to do so.
The benefits of diversified economy, away from oil sector, is all in the greater and long term interest of the country, whereas the high rents are working against it.
So, there is a need to come up with low rental markets, offices and apartments allowing the businesses to succeed and grow.
Low rent means, low operating costs, resulting, low rates. Therefore this would bring down the high projects costs, which as a result shall give advantage to the govt.
Example:
100 units 1 BR apartment unit not sold for 06 months. (Unit Price 45,00 QR)
Rev. 0. (Also finding difficult to grab the business)
100 units 1 BR apartment sold since six months @ price of (2,500 QR per unit )
100 x 25,00= 250,000 ( 250,000 x 6 = 1,500 000 QR)
My question is which one is better.
Be creative:
Work on: Furnished/Un furnished/ Different Sizes /Luxury/Medium /Average/Location / Community/Nationality
When the building is in plan to build, study the market to whom we are going to cater. Are we going to build in D ring road to capture the market in Pearl or Lusail. Or else we are building out of west bay, but for the same price of west bay.
In Doha, there is no bigger classification. All the prices are somewhat similar accept for few locations. There are lots of congested area in Doha, and those people pay money to stay in accommodation. Don’t you think they will pay additional 500 QR or 1000 QR for a better housing.
Real estate owners should think. There is an existing market. Why not thinking to offer something attractive to them. New comers salaries are not higher than before. What you do with the same strategy of pricing.
Another example:
If you have rice which you not sold today, you can sale tomorrow or after two months.
There is an apartment unit which you have not sold for last month, Can you sale the last month for this month.
Not necessary bigger expertize calculation. Please consider my proposal if it’s worth. If not I am sorry for proposing a wrong strategy.
Open the economy to foreign investors, lets them own properties and businesses...see how that would significantly add the flow of money into the country from overseas. They are too selfish to realise. Dum dum di la dum dum!!! Let's sing along to the tunes they play!
Brit,
You inputs and contributions are always marvelous and beneficial to the QL community at large, that we acknowledge and take with due respect.
But sometimes, a few of your comments "go out of line", However I make a conscious effort to maintain moderation and take the positive tread, except this, which should end at my sorry.
This is wise .. Low rents are necessary
Equinox: So , because I disagree with you, my comments are considered foul ?
My apologies if you feel this way ...
Please also ready the latest report of Qatar Business Association that is also talking about it.
So, would you hurl your foul comments on them as well?
And i feel pity on your poor understanding of the businesses and economics, Mr. Brite, you got to educate yourself about it or seek guidance from any expert.
I'm amazed at the naivety of some of your posts - This is the real world.. People and businesses are bending over backwards to come to Qatar..
Low rents also mean low returns for those who have built the infrastructure and buildings