Real estate investments require clarity, experts

SIMPLICITY, clarity and incentives should be the messages the government sends out if it wants to attract foreign investment in the real estate.

The call was made by regional real estate experts on the second day of the two-day Qatar Property Investment Forum that concluded here yesterday.

“If an investor is coming here, he wants to know how much transparency there really is,” Colliers International regional director Ian Albert said during a session entitled ‘Attracting Foreign Investment’.

Albert was of the view that clearly-defined contracts between tenants and landlords, in addition to laws put in place by government, guarantee on tax free investment, credible credit rating system are tools that can bring in foreign investment in the real estate in Qatar and the region.

“Make sure you put all your policies out there. For instance, the Abu Dhabi 2030 Master Plan pretty much lays the foundation of all future projects in the Emirate, unlike Dubai where developers bought a project and before they knew it there was another development next to theirs,” Albert said.

The expert also suggested that the governments (GCC) create credible company credit rating system and impose increased-limit spread to the banks.

“And please make finance available. If you really really want to bring in investment make sure there is finance,” Albert added.

To a question, he said the next 12 months are going to be tough for the sector. “The reality is it’s going to drop off. Companies who were looking to expand are now tightening the belt, as share prices fall,” he answered.

“The advantage is this is not a democracy. This means decisions to address real estate issues can be made overnight,” he added.

The second speaker of the session, Katrina Wilson, a legal consultant at Al Tamimi & Company explained the various types of residency visas, for non-Qataris, GCC national ownerships and free hold as well as usufruct visas.

Nick Witty, DTZ deputy managing director moderated.

Real estate professionals present at the World Trade Center Qatar-organised property event said the real estate market in Qatar is ‘solid’ with good volumes in transactions, when asked by Gulf Times.

“What’s happening currently is that the mortgage lending has decreased as banks have reached their yearly targets (this being year-end) and sellers are holding on to what they’ve got,” a real estate consultant explained.

Others, however, said the developers in Qatar need to adjust to ‘realities’.

“The investors around the world and from Qatar are now taking their money from here and putting it in the housing market in the US where prices have dropped by 50-60% and besides interest rates have been lowered by the government,” another research analyst said.

“This will take out liquidity from the market causing a spiralling effect. The developers, must pause, reassess and lower price. Already you hear them giving 12% discount on cash, or other offers,” he added.