Rent and Asian Games
By ESL Teacher •
I know this has been brought up and debated a million times before. I would just like to give some reassuring info I just got from a DAGOC employee. There are only roughly 2000 employees with DAGOC certainly not enough to make a difference in the rent situation as many of these employess were already residents too (nationals or on husbands sponsorship). BUT, they have contracted most of the work and tasks to various foreign companies who have brought their staff and set up here in Doha. And she, the DAGOC employee, says that their numbers are quite great and once the Asians Games are over, although not immediately after, there are going to be a large number vacant homes and apartments once these these people leave.
Well here's hoping!!
Hi all,
An international investment bank circulated to its clients in the region a very serious report warning from an eminent crash in the real estate sector similar to the one witnessed in the stock market in Qatar and elsewhere in the GCC. The same is due to various reasons, among them:
- just like the stock market, the last increase in the rent prices was based on purely speculative reasons, no fundamental reasons involved, therefore such increase would not be sustainable on the medium term;
- in early 2007 will become available on the market a large number of housing units, the construction of which were initiated 2 years ago to benefit from the booming real estate sector. The number is estimated at around 15,000 units;
- the end of the Asian Games will directly engender the vacancy of around 2000 units. Such units were occupied by foreign companies’ staff hired for a determined period for the purpose of the games;
- after the games, the Olympic Village will host all Hamad hospital staff and furthermore, various other public or semi public entities would be able to benefit of such facilities. The total capacity of the Olympic village is about 1000 units which means that other units currently occupied by Hamad Hospital Staff would be vacated;
- the moratorium on new oil and gas projects for the next 3 years means that oil and gas companies would not be substantially hiring further middle management and senior staff. Furthermore, various oil and gas companies are building there own compounds in areas like Al Khor and Rass Laffan;
- the new changes to the laws allowing foreigners to own freehold and leasehold in various areas in Qatar will, in the medium term, make renting accommodation at the current rate less interesting for long term expats if compared to mortgages.
The market is expected to witness a decrease of around 20 to 25% within the first six to twelve months of the year 2007.
it has to do with the simple fact that most of these landlords know that companies will pay for their employees accomodation or give them a housing allowance. Thus they are trying to make sure they profit to the very last penny. That's why previously you would see rent increases by 100% -150% it was absolutely insane. They really have no respect for their tenants we are all just financial assests.
Because as you can notice it, landlords obliges people to rent for a long-term contrat,cause they know that prices will get down after asian games.
I cannot admit that prices of rent are very expensive in a city where we have no facilities,No public transportation, not enough taxis, no places to enjoy yourself, no good roads, no greenery, no administratives services , not enough kids school, you wait one month to have an internet acces or a fixe telephone.Frankly I do not see what is special in Doha to justify such prices of rent.Rent in Doha are more expensive than in big cities such as Rome,Milan,Paris,NY,London where we have more facilities.
Finally,Doha is not also interesting as I expected it, I am really disappointed by the life in Doha.
Quickly the end of the ASIAN GAmes.
I'm just hoping a better selection after the Games.
I'm just hoping a better selection after the Games.
4 years ago whent he rents were nice and comfortable, i had seen a brand new 2 bed flat, beautiful place, nothing like i had seen earlier, and the building was vacant for more than a year, bcos the landlord was asking for 4500, at that time, and i was paying 3000 for my huge 3bed flat. so landlors are quite patient, they will wait and wait till they get the right goats to make a halaal of.
also logic would say that ras laffan has its own townships, ummsaid is doing the same, hamad will take over the village, so what happens to so many flats and villas which will be vacant. rents have to come down sometime, it wont fall drastically, but it will come down.
The landlords will do their best to keep the prices up as much as they can and most of them wont accept to lower the prices down even if the properties will stay without beeing rented for months.
I think many of those companies who came here because of the Asian Games wont leave the country totally, I believe once they find themselfs here then they might take this oppertunity to open a new business for them especially the consturctions companies.
I believe the main reason the prices wil be really affected is when Hamad Hospital will take over the Athelitic Villag and vacate the so many buildings they rented for their staff.
Lets wait and see...
you know what, lots of places will be vacant and they will keep it that way, its known to happen, they would be looking for companies who can pay them gold for those places, or just wait for poor desperate people who can pay the same amount.i dont think anything concrete will be seen atleast until after the mid of nextyear.
yup lets keep our fingers crossed and hope for the best.
prepare cofee even that wont work.....
finger cross :-)
That sounds really great, but as a wise druid once said "Don't count your wild boar piglets before they are born", that really is a question which lingers in all our minds... lets hope it is true..... ;-)