Qatar Real Estate Report Q4
2012

Qatar Real Estate Report Q4 2012

Executive Summary The Qatar Real Estate report examines the Commercial Office, Retail, Industrial and Construction segments throughout the country in the context of a robust economy and a construction industry laden with optimistic supporting the expansion potential of the commercial real estate market. With a focus on the principal cities of Doha, Al-Khor and Al-Wakra, the report covers the rental market performance in terms of rates and yields over the past 18 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of the government fed construction boom on a market which is moving its way up the regional ranks. Qatar's office and retail segments are growing fast and present bullish medium-term prospects, despite the fact that 2011 saw large falls in rental rates in these segments, particularly in Doha. Newly collected data from H112 however has revealed that the market has bounced back from these minor price corrections and that growth is once again on the cards. The 2022 World Cup presents an obvious bonanza for the sector, although it stands to reason that much growth will be organic Qatari demand, as flows of retail-minded tourists are more likely to be directed to the UAE (primarily Dubai). Despite our in-country sources having limited information on vacancy rates, it is clear that the current effect of hosting the 2022 World Cup is an increase in demand and an improving construction pipeline. Key Points

• BMI's Q412 report includes newly collected real estate data covering market performance for the first six months of 2012.
• Qatar's short-term political risk profile remains among the most stable in the region. Despite enjoying little in the way of democratic freedom, Qataris benefit from massive hydrocarbon wealth which is spread generously across the country's native population and enjoy the highest per capita GDP in the world. A small population - and one without much inclination to protest against the government - will keep the country insulated from large-scale public unrest in the immediate term.
• Qatar is likely to continue its efforts at enhancing its international investment position over the coming years. We are forecasting a current account surplus of 34.4% of GDP in 2012 and, in spite of our expectation of moderating global energy prices, forecast an average surplus of 27.0% of GDP in the period 2012-2015, facilitating further outflows of capital from the small Gulf state. Qatar Real Estate Report Q4 2012

• We forecast real GDP growth to come in at 7.8% in 2012 and 7.3% in 2013, compared with our previous forecast of 7.9% and 6.9% for 2012 and 2013 respectively.
• As a result of larger-than-expected wage increases, coupled with our view that deflation in the housing market will ease, we forecast average inflation of 2.9% and 4.1% in 2012 and 2013 respectively, compared with an estimated 1.9% in 2011. That said, as oversupply in the housing market is set to moderate more slowly than we previously expected, we have lowered our forecasts for consumer price inflation, from 3.8% in 2012 and 4.3% in 2013 previously.

• Executive Summary
• SWOT Analysis
• Qatar Real Estate/Construction SWOT
• Qatar Political SWOT
• Qatar Economic SWOT
• Qatar Business Environment SWOT
• Real Estate Market Overview
• Market Analysis - Office
• Rents And Yields
  • Table: Historic Rents - 201(QAR per m2/month)-2012
  • Table:. Net Yield, 2011-2013(%)
  • Table: Terms of Rental Contract/ Leases - H112
• Supply And Demand
• Industry Forecast Scenario
  • Table: Forecast Rents - QAR/ Square Metre/ Month
  • Table: Forecast Net Yield, 2008-2016 (%)
• Market Analysis - Retail
• Rents And Yields
  • Table: Historic Rents - 201(QAR per m2/month)-2012
  • Table: Net Yield, 2011-2013(%)
  • Table: Terms of Rental Contract/ Leases - H112
• Supply And Demand
• Industry Forecast Scenario
  • Table: Forecast Rents - QAR/ Square Metre/ Month
  • Table: Forecast Net Yield, 2008-2016 (%)
• Market Analysis - Industrial
• Rents And Yields
  • Table: Historic Rents - 201(QAR per m2/month)-2012
  • Table: Net Yield, 2011-2013(%)
  • Table:. Terms of Rental Contract/ Leases - H112
• Industry Forecast Scenario
  • Table: Forecast Rents - QAR/ Square Metre/ Month
  • Table: Forecast Net Yield, 2008-2016 (%)
• Forecast Scenarios
• Infrastructure Report
  • Table: Qatar Construction And Infrastructure Industry Data, 2008 - 2016
  • Table: Qatar Construction And Infrastructure Long Term Forecasts, 2013 - 2021
• Construction And Infrastructure Forecast Scenario
• Macroeconomic Outlook
  • Table: Qatar - Economic Activity
• Real Estate Risk/Reward Ratings
• Real Estate/Construction Risk/Reward Ratings
  • Table: Middle East And North Africa Risk/Reward Ratings (%) . Error! Bookmark not defined
• Qatar's Business Environment
• Qatar Real Estate Report Q4
• Business Monitor International Ltd Page
  • Table: BMI business and operation risk ratings
• Institutions
  • Table: BMI Legal Framework Rating
• Infrastructure
• Market Orientation
  • Table: Labour Force Quality
  • Table: Middle East & Africa - Annual FDI Inflows
  • Table: Trade And Investment Ratings
  • Table: Top Export Destinations
• Operational Risk
• Competitive Landscape
• Company Profiles
• Barwa Real Estate
• Qatari Diar Real Estate Investment
• Ezdan Real Estate
• United Development Company
• Demographic Data
  • Table: Qatar's Population By Age Group, 1990-2020 ('000)
  • Table: Qatar's Population By Age Group, 1990-2020 (% of total)
  • Table: Qatar's Key Population Ratios, 1990-2020
  • Table: Qatar's Rural And Urban Population, 1990-2020
• BMI Methodology
• How We Generate Our Industry Forecasts
• Construction Industry
• Bank Lending
• Sources