Five principal factors steer Qatar’s real estate sector in 2022 and beyond, according to a new PwC Middle East analysis. According to the firm’s analytics, whilst the real estate industry’s prevalent recuperation could pave the way to a stoppage in the medium term, Qatar’s series of mega-events might as well serve as an antidote.
Keep reading to find out the five steering factors of Qatar’s real estate industry!
The coronavirus pandemic has facilitated commotion internationally and locally, despite the gusts and gales caused by the travel embargoes and restrictions enforced to manage the virus’ outbreak. As a result, the Purchasing Managers’ Index rallied to accomplish 63.1 in November 2021 (a number beyond 50 highlights economic sanguinity). Additionally, the Real Estate Price Index completed a score of 223.54 in October 2021.
A favourable outlook for the real estate sector is primarily underpinned by the FIFA 2022 World Cup, arranged between November 21st to December 18th.
The FIFA World Cup at Qatar
The FIFA 2022 World Cup has been at the bosom of Qatar’s economic strategies and assisted as a source of optimism during the recession. Amidst an intense pandemic and political tensions, the event remained a ray of hope for the public and economic decision-makers. The FIFA World Cup is not merely a promising strategic tool as a particular occasion but also a priceless growth steerer for a flourishing economy beyond 2022 and a vital fragment of the Qatar National Vision 2030.
The FIFA World Cup will underpin Qatar’s goals of accomplishing long-term urban progression and economic broadening and solidify its stance as an investment destination.
Qatar and countries across the world are vastly concentrating on tourism. However, post a sharp drop in RevPAR in 2016, Qatar changed its focus to making its economy more versatile via developing regional attractions like the Qatar National Museum. Furthermore, visa-free entry was permitted to citizens from 88 nations, delivering Qatar’s image as one of the globe’s most accessible nations.
Three principal indicators of the boom in the tourism industry include – average room revenue, occupancy rates, and RevPAR – all enhanced between H1 2020 and H1 2021, respectively acquiring 7%, 16%, and 24%.
With the World Cup ahead and relationships with neighbouring nations being resolved, arrivals will likely increase.
Environmental, Social and Governance (ESG)
Qatar’s real estate sector is on track to inhibit its carbon footprint and make way for a more sustainable future. Three of the nation’s recent chief projects – Msheireb Downtown, the Doha Metro, and Lusail City – unified Qatar’s sustainability outline into the core of their development strategies, as demonstrated by their prominence on renewable energy solutions like on-site energy generation, carbon dioxide monitors, and LED lighting systems.
Qatar’s commitment to sustainability is also refracted in World Cup preparations. FIFA’s 2022 stadiums are on track to accomplish at least a 4-star Global Sustainability Assessment System rating (GSAS rating) in construction, design, energy, and water utilisation classes.
Property tech or PropTech is an essential instrument that can underpin Qatar’s sustainability vision via real estate and augment the sector’s growth. It is a sector that should be discovered further. The real estate industry has a long history of being unaffected by the digital interruption. However, such an approach is old-school in an epoch where speed has become an essential aptitude for global sectors.
PropTech’s probable penetration into the real estate market is demonstrated by big data, which can deliver visions that notify policymaking and project preparation, whilst also augmenting the presentation of internal building systems like HVAC and electrical infrastructure; virtual reality, through which potential purchasers could receive an immersive tour of a property even before the construction commences; artificial intelligence, which can more precisely forecast pricing trends.