Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar's inflation projected at 3.8pc this year  Join our daily free Newsletter

MENAFN - The Peninsula - 09/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Driven by high rentals, Qatar's overall inflation is projected to accelerate from 3.1 percent in 2013 to 3.8 percent in 2014. A recovery in land prices over the past two months is expected to reverse the slowdown in rent inflation by mid -2014



Rental inflation accounts for around 32 percent of Qatar's CPI basket. QNB Group noted yesterday that rent inflation has slowed in recent months in line with its earlier projections. However, a recovery in land prices in December 2013 and January 2014 could reverse the slowdown in rent inflation in the coming months



Rent inflation slowed from 6.7 percent in the year to August 2013 to 4.8 percent in the year to December 2013, based on Consumer Price Index (CPI) data released by the Ministry of Development Planning and Statistics (MSDP). QNB Group has analysed data purely on land transactions in Qatar, based on weekly statistics published by the Ministry of Justice (MoJ). This data suggests that the slowdown in rent inflation tracked land prices with a six-month delay



Land prices fell from March to November 2013 on the basis of an average of prices for the last 12 months. As rents tend to follow land prices with a six-month delay, we expect rent inflation to continue to slow to below 4 percent between now and May 2014



QNB research note said land prices are a fundamental driver of rents. Land is the main component of the cost of building, developing and buying real estate. To recoup costs, landowners and real estate developers need to raise rents in line with rising land prices, or vice versa. Therefore, after land is purchased and construction is completed, rents are likely to move in the same direction as land prices. Our analysis confirms that there is a strong relationship between land prices and rent inflation. Rents tend to follow land prices with a six month delay, with a correlation of 88 percent



QNB Group noted that the updated transaction data suggest that land prices may have changed direction in December and January, which, in around six months, could create upward pressure on rents.



Looking ahead, QNB Group expects land prices to continue to rise moderately, based on strong population growth, which should underpin demand for land in order to develop housing and commercial real estate projects. Population growth averaged 10.1 percent over the last 12 months, based on data on the number of people in the country. Therefore, in the second half of 2014, we expect rent inflation to pick up again to between 4.0 percent-5.0 percent. This level of rent inflation is moderate and should alleviate any concerns that the real estate sector is entering an asset-price bubble or that the economy is overheating



Overall, rental inflation accounts for around 32 percent of Qatar's CPI basket. The remainder of the CPI basket mainly relates to global inflation and international food prices. Global prices are expected to remain moderate through 2014.



This will result in overall CPI inflation in Qatar in 2014 of around 3.8 percent

 






  MENA News Headlines
 Jul 30 2014 - Safe haven status boosts investment scope in UAEspanKhaleej Times
(MENAFN - Khaleej Times) E political situation in the region has made Dubai into a magnet for families from across the region to set up home and establish regional or global offices for their ...

 Jul 30 2014 - Tech Mahindra eyes expansion in Saudi ArabiaspanKhaleej Times
(MENAFN - Khaleej Times) Ch Mahindra a specialist provider of connected solutions has announced that it has signed a joint venture agreement with Midad Holding which is a subsidiary of Al Fozan a ...

 Jul 30 2014 - Middle East earns 1 of global market research revenuesspanKhaleej Times
(MENAFN - Khaleej Times) E entire Middle East region earned only a meager one per cent of the global market research revenues which indicates the potential for market research that is prevalent in ...

 Jul 30 2014 - Dewa to show smart initiatives at Gitex 2014spanKhaleej Times
(MENAFN - Khaleej Times) Bai Electricity and Water Authority or Dewa has announced its participation in Gitex 2014 to be held from October 12-16 at the Dubai World Trade Centre.Dewa will showcase its ...

 Jul 30 2014 - Sico first-half net profit jumps 166spanKhaleej Times
(MENAFN - Khaleej Times) Curities & Investment Company or SICO licensed by the Central Bank of Bahrain as a conventional wholesale bank announced its financial results for the second quarter of 2014 ...

 Jul 30 2014 - Taqa Arabia eyes Egypt expansionspanKhaleej Times
(MENAFN - Khaleej Times) Laa Holdings announced that its energy sector subsidiary Taqa Arabia aims to expand its network of fuel stations in Egypt through Taqa oil marketing company.The company ...

 Jul 30 2014 - Real estate to pick up from next week: Industry expertspanKhaleej Times
(MENAFN - Khaleej Times) Bai Land Department transactions exceeded Dh113b for H1 The real estate market in Dubai is expected to pick-up again from next week after a slowdown during the last couple of ...

 Jul 30 2014 - Memon to hand over five projects in 2014spanKhaleej Times
(MENAFN - Khaleej Times) Mpany working on Dh1.Memon Investments has planned to hand over five projects worth more than Dh600 million in the next five months and is also planning to launch five new ...

 Jul 30 2014 - ADFD funding in underdeveloped countries hit Dh61bspanKhaleej Times
(MENAFN - Khaleej Times) E development finance institution articulates the UAEs continued commitment to support the development process of emerging countries.An exterior view of power plant in ...

 Jul 30 2014 - UK and US preferred by Arab travellers: MarriottspanKhaleej Times
(MENAFN - Khaleej Times) E US takes the lead when it comes to bookings with 20 per cent of all reservations closely followed by the UK which accounts for 16 per cent.Marriott International has ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help