Expert: Government should control rent hikes

Expert: Government should control rent hikes

QatarNews
By QatarNews

Given the soaring housing rents, the government should consider freezing rent increases by landlords, says an expert.

Rents might increase beyond control if affordable housing stocks are not built for limited-income people following the crackdown on illegally partitioned villas, said Ahmed Al Jolo.

Head of Qatar’s Engineering Society, Al Jolo said real estate developers must now focus on affordable housing to help meet the growing demand for such stocks due to action against partitioned villas.

“Following the crackdown on partitioned villas, demand for affordable housing is bound to grow manifold,” said Al Jolo.

He, however, said that the decision of the Ministry of Municipality and Urban Planning to act against illegally partitioned villas was justified due to safety concerns.

Not only were people’s safety and security at risk in illegally partitioned villas, but there was also undue pressure on precious resources, said Al Jolo.

Following the crackdown on partitioned villas, rents that are now rising at an annual rate of 10 to 20 percent might go up by 13 to 23 percent in the initial phase of the drive, he said.

In the latter phases of the crackdown, when all partitioned villas are gone, the rent growth could spin out of control, Al Jolo told local Arabic daily Al Arab in comments published yesterday.

This should make the government think in terms of putting a freeze on rent increases by landlords, said Al Jolo.

He said most real estate developers were focusing on luxury housing stock and they were making good profits. But what they need to do now is turn their attention to affordable housing.

Local banks should also extend a helping hand to developers in this initiative and provide them easy loans.

Asked by Al Arab if the crackdown on partitioned villas was aimed at helping certain sections of property owners (those who have apartment blocks ready to let out), Al Jolo said that was not true.

The crackdown was launched after careful studies and for the safety and security of those living in the makeshift residential units, he said.

The Peninsula | Photo by Mohamad Alodaima

By gimkygimky• 15 Sep 2014 09:02
gimkygimky

Qatar don't have any projects related to affordable housing and no landlord was going to reduce their rent. After Villa partition crackdown they is an high increase in rent in every corner of the Qatar. Better start to look any other GCC countries offering good salary and living conditions.

By mishijos• 15 Sep 2014 08:29
Rating: 5/5
mishijos

Many landlords are increasing the rent with no control. There is a sector of 'afordable housing' has been abandoned in liue of the large and expensive villas, forcing people to move to a large villa, even though they don't need such.

It's impossible to find a decent small villa with good maintenance service, most are big and expensive starting from QR 14k/month.

Al Wabb city construction has been stagnant for couple of years, and it was supposed to offer many mor options for medium-income families, that don't need a large villa.

By zohaibkamal• 15 Sep 2014 06:51
zohaibkamal

there are many thing that "SHOULD" be done by the government. but after 2 years even a guy with 15k salary will be only be able to rent a room if things are not controlled now.

By mauvesquee• 14 Sep 2014 18:25
mauvesquee

Are we all experts then? If you know what I mean. Captain.

By usju• 14 Sep 2014 17:22
Rating: 4/5
usju

Wrong... they should REDUCE it first, and then set a limit on rate of increase! The rents are outrageous.

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