Gulftimes: Residential rents in Doha to fall in H2 on the impact of Covid-19: Cushman and Wakefield Qatar
[ad_1]
Residential rents in Doha are expected to decline in the second half (S2) of this year and into 2021, as Covid-19 is expected to have its impact in the short term, according to Cushman and Wakefield Qatar (CWQ).
“Covid-19 is likely to impact aggregate demand in the short term due to declining job growth and second quarter (Q2) layoffs,” Johnny Archer said yesterday, CWQ Director, Head of Consulting and Research during a webinar titled ‘Qatar Real Estate Market Snapshot Q2 2020’.
Rental levels have remained relatively stable although further downward pressure is expected in the second half of the year and into 2021, he said.
While temporary rent relief has been available in some developments, face rents have remained “relatively stable” in recent months, despite turbulent market conditions, according to the report.
âAs supply increases, we expect downward pressure on rents, particularly in secondary locations; However, this should be tempered by a strong increase in demand in 2022 with the organization of the 2022 FIFA World Cup, âhe said.
While the recent cuts are based on tackling the immediate impact of Covid-19, a V-shaped recovery is unlikely in the residential real estate market, according to CWQ.
The restoration of the wider economy and the associated performance of the labor market will lead to further demand, he said, at the same time adding that a general warning about global travel could delay any rebound. immediate number of expatriate jobs.
The report found that T2 occupancy rates have generally remained “stable or increased” in major neighborhoods, such as The Pearl-Qatar, as increasing affordability has resulted in a general tendency for people to move through at these places.
Areas such as Fereej Bin Mahmoud, Al Mansoura and Umm Ghuwailina have all seen vacancy rates rise in recent months, he said, expecting vacancy at some villa complexes to temporarily increase in the near future. third quarter as the results of the Covid-19 reductions come into effect. effect.
The new residential offering in the second quarter included the Paramount Tower (Porto Arabia Tower 12) and 12 Viva Bahriya on The Pearl Qatar. In Lusail, Les Maisons Blanches, a collection of villas and apartments next to Place Vendôme, started renting in May. The supply in the Lusail marina district has now exceeded 1,500 units.
Several new developments have delayed opening in recent months due to the Covid-19 pandemic; However, a significant new supply will reach the market before the end of the year, he said, noting that Abraj Bay, on the Pearl-Qatar, comprises nearly 1,500 residential units in four towers and townhouses. partners and adds a substantial residential offer to the neighborhood.
[ad_2]