I have heard that developers of apartments or compounds do not have to start making interest payments on development loans "until all or part of the development" has been rented out.
I am told that this means that developers look for one tenant (company) to take the whole development. This means that they are then paying interest while at the same time receiving income from the whole property. Whereas if they just rented out one or two units, they would still have to make the full interest payment even though they were only receiving rent from two units.
I don't know if this true or not but if it is, it would explain why there are so many empty developments in Doha. It would also explain to some extent why rents haven't really dropped although supply has increased.
The shortage of affordable housing poses a big risk to this economy in the long term. Also, the greed of the landlords seems to be insatiable while the quality of the finishings of property is the worst I have ever seen anywhere.
I have heard that developers of apartments or compounds do not have to start making interest payments on development loans "until all or part of the development" has been rented out.
I am told that this means that developers look for one tenant (company) to take the whole development. This means that they are then paying interest while at the same time receiving income from the whole property. Whereas if they just rented out one or two units, they would still have to make the full interest payment even though they were only receiving rent from two units.
I don't know if this true or not but if it is, it would explain why there are so many empty developments in Doha. It would also explain to some extent why rents haven't really dropped although supply has increased.
The shortage of affordable housing poses a big risk to this economy in the long term. Also, the greed of the landlords seems to be insatiable while the quality of the finishings of property is the worst I have ever seen anywhere.