SLUMP IN DEMAND FOR OLD BUILDINGS
Fear of demolition and options of better accommodation have heavily impacted the demand for old residential buildings and partitioned villas, the rents of which have gone down by up to 20%.
According to a report, industry sources have said that real estate experts are expecting a gradual population shift from Doha to outside areas because of massive government investment in developing areas. “Oversupply and relatively low demand for old buildings in areas like Najma, Mansoura and Old Airport have led to rents falling by 10-20%. “The majority of tenants now prefer new buildings with good maintenance services and facilities,” said Ahmed Al Arouqi, General Manager, Roots Real Estate. Arouqi also said that land prices remained very high in Doha and that very few plots were available for developers and even those were not being sold that easily. “The government is investing heavily in infrastructure projects and services in areas outside Doha, encouraging investors, tenants and companies to move to those places,” he added.