Ezdan set to meet housing demand in Qatar 

(MENAFN - The Peninsula) Excerpts of the interview:

Q. How do you evaluate the situation in the real estate sector in the country right now?

A. Everyone knows this is a special situation we are facing. We are going through hard times. Real estate is a major sector, so the impact of the global financial crisis is more prominent. Higher-end properties are affected more.

Q. Can we quantify the impact?

A. I would say that the current downslide has affected higher-end properties—housing stock with quality finish—some 20 to 50 percent. In other words, property prices and rentals in this segment have fallen 20 to 50 percent post-recession.

Q. How about middle and lower-end segments? How much beating have they taken, in your view?

A. Talking especially of middle-end properties, the drop in prices and rents should not, in my estimation, exceed 20 percent.

Q. And lower-end properties…

A. On properties whose monthly rents are less than QR4,000, I would say the impact has been minimal—up to five percent. The demand for this segment continues to be stable.

Q. Let's talk of other factors that have pushed the sector into a slowdown…

A. There are a number of factors that have come into play. Of course, the primary cause of the downturn is the global economic turbulence. Then, there is oversupply, and a slowdown has been witnessed in the influx of people into the country. Additionally, there have been indications of job layoffs, recruitment having been put on hold by some employers, while several companies are said to have sent their employees on long leave to cut corners, hoping to recall them when the economic situation improves. All this has impacted the demand for housing amidst increasing supplies.

Q. You have recently opened up bookings for Ezdan Village 3 project in Al Wakra…

A. Yes, smaller flats, which like other apartments and villas in the project are fully-furnished with quality household materials and appliances, have been gobbled up like hot cake. In just five days all the smaller flats have been booked.

Q. Is there a lesson to be learnt here?

A. I know what you are hinting at. But as a developer you can't make all small apartments in a residential project. The authorities simply don't allow this to happen. It's not a pick and choose situation for us. You have to go by the guidelines of the Urban Planning Department, for instance. They do zoning. There are density (population per square kilometres) requirements they put in place. They specify the number of housing units of varying sizes to be constructed in a complex. Then, we need to have space for parking, etc.

You know that in our Village 3 Project we have several key amenities like swimming pool, club house, tennis court and gymnasium and parking slots, among other things.

Q. Now, individuals and families looking for small apartments in your Village 3 Project stand no chance of accessing one at QR3,000 monthly rent…

A. Of course, they will have a chance when we open up our next project for booking over the next few months. They will get similar units. I assure you that there will be no problems. In our project we have accommodation to suit big families as well as individuals and anything in between.

Q. And the same rules apply—no rent for three months, all fully furnished apartments fitted even with flat TV sets and cable connection, etc…

A. Yes, you are quite right.

Q. Being a major developer, you must be conducting feasibility studies before launching a project…

A. Yes, we do our internal feasibility studies to see if a project is viable. Our engineering department conducts such studies.

Q. How do you see the overall demand for housing changing here over time? I mean, how do you decide what type of and how many apartments to build while mulling a project?

A. Housing needs keep changing here over time according to the demographic mix. Indeed income levels play a key role as well. The economic cycle of the country is small and turns fast. For instance, some three to four years ago, there was more demand for two to three-bedroom apartments as more and more foreign companies were making a foray here. Before that, the social mix was different. There were families and there were labourers. This was a simple demand and supply equation. However, for the past four to five years the social mix has been changing. A lot of people have been coming here and that particular category wants one-bedroom apartments. There is demand for studio apartments as well.

Q. We hear that the upcoming Doha Expressway will pass through the heart of your Village 3 project in Al Wakra…

A. Yes, it will pass through the heart of our development, making it a prime triangle. Messaieed, the upcoming Doha Port, New Doha International Airport and the new Industrial Area will all be five to 12 minutes' drive from here. At the same time it will remain an ideal location to live in since it is a very quiet place.

Q. Ezdan was involved in Asian Games housing projects as well…

A. Yes, we have been successfully managing extraordinary housing needs at international levels, from the days of the World Trade Organisation's (WTO) fourth ministerial meet. We provided housing for the WTO delegates. Then, we were the housing suppliers for the Asian Games. We have been active for a number of years now.