(MENAFN- The Peninsula) After softening a bit in April 2015, Qatar's real estate price value rebounded 23.5 percent in June 2015, from a year ago period.
The Qatar Central Bank's (QCB) updated real estate price index, which tracks Qatar's real estate market value, yesterday noted the index hit a record high of 284.0 points in June compared to 230.6 points in the same month in 2014.
QCB's real estate index witnessed a slowdown during the first month of second quarter. The index slipped to 269.5 points in April from the previous month's 271.3 points.
The index rose to 27.7 points in May, before jumping to 284.0 points in June. The QCB index performance is a reflection of the surging value of the country's real estate market. According to market analysts the combined value of Qatar's real estate transactions for the first six months of this year (H1, 2015) surged 48 percent on year-on-year to QR36bn.
This is against an 18 percent year-on-year increase recorded for the first half of 2014, when the combined value stood at QR24.4bn.
Central to Qatar's economic outlook, which has been projected to grow at a rate of 6.5 percent per year for the next two years, is execution of the government's five-year, $210bn infrastructure development plan, NBK analysts noted in its updated economic outlook for Qatar.
According to NBK, an estimated $29bn worth of contracts were awarded in 2014 - 30 percent more than in 2013 - and it expects momentum to further increase in 2015 on the back of the $13bn worth of contracts for strategic projects awarded in the first quarter of this year.
Ahmed Al Arouqi, General Manager, ROOTS Real Estate said told Al Sharq that Qatar's real estate market has grown manifold over the past five years in terms of value, though the total number of deals have been remaining flat for the past three years. "If you compare the total number of deals struck in first half of 2015 with 2011, you could see the number has fell to 3,050 from 3,279," he said.
According to him, land value meant for villas and residential complexes at prime locations have gone up at a significant rate over the past two years.
For instance, land prices at places like Central Doha and Al Rayyan have recorded an increase of something 30 to 35 percent. And Dafna, West Bay and Pearl, witnessed a sharp increase ranging between 40 to 50 percent. The surge in prices of lands are comparatively moderate in places like Al Shamal and South Doha and in the municipalities like Al Dhayeen, Umm Salal and Al Wakra.
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