(MENAFN- The Peninsula) By Satish Kanady / The Peninsula
After witnessing a slowdown in the first quarter (Q1, 2017), Qatar's real estate market appears to be on the recovery path. Qatar Central Bank's (QCB) latest data on real estate reflects a notable market turnaround in June. QCB's real estate price index hit 280.90 points in June 2017, a month-on-month growth of 2.01 percent compared to the lowest point for the year in May, which registered 275.35 points.
The June 2017 numbers moved up by 2.79 points from the previous quarter, reflecting a Q-o-Q growth of 1 percent .
QBC bases its monthly price index on the real estate data issued by the Ministry of Justice (MoJ).
However, when compared y-o-y, the index in June, showed a decline of 16.54 points, compared to the corresponding month in 2016.
According to the central bank data, Qatar's real estate prices hit a top 282.96 mark in January 2017, before witnessing a slowdown. The numbers slipped to 277.87 points in February to edge up in March and April.
QCB's real estate price index hit a high 307.56 points in March 2016, before nose-diving to 266.71 points in September 2016. A new way of real estate supply hit the market during the last quarter of 2016, widening the demand-supply gap. Prime office rents fell by an average of between 10 percent and 15 percent, due to lower demand and an increase in new supply.
Ezdan Group's latest report on realty market suggests that the market is on the recovery path. According to Ezdan's research team, the country's real estate transaction value jumped to QR1.8bn in July 2017 compared to QR1.2bn from the same month in 2016. The report pointed out that this growth in transactions confirms the recovery of real estate transactions. The market's positive performance is expected to continue in the coming months, the Ezdan report said.
According to Ezdan's monthly report for July, the third week of the month was the best deal making week, in terms of value. The combined value of transactions stood at QR572.8m during the week. A total of 53 deals were closed in July.
The value of land transactions during the month of July reached about QR878.3m, accounting for 50.1 percent of the total transactions, while the value of miscellaneous properties amounted to QR874.2m, or 49.9 percent of the total transactions. A total of 215 deals were closed in July.
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