1 August 2018
Moody’s changes Qatar’s rating to stable and affordability remains a dominant trend in real estate
Qatar’s economy and real estate sector is gaining traction following a report by Moody’s Investor which changed the country’s rating to stable from negative, while ValueStrat reveals that Q2 witnessed a rise in real estate transaction volumes.
According to The Peninsular: “The assessment is in part based on evidence of broad resilience of Qatar’s credit metrics to the economic and financial blockade over the past 13 months.”
“According to Moody’s, the rating affirmation at Aa3 takes into account a number of credit strengths embedded in Qatar’s credit profile which, in Moody’s view, remains supported by the large net asset position of Qatar’s government, exceptionally high levels of per-capita income, very large hydrocarbon reserves and relatively low fiscal and external breakeven oil prices — all of which will continue to provide a significant shock absorption capacity to the sovereign,” noted in The Peninsular.
Looking at Qatar’s real estate market, ValueStrat reports that there is increased affordability across all sectors in the country.
Pawel Banach MRICS, “Affordability has become pervasive across all real estate sectors in Qatar. Falling commercial rents are favouring tenants who are budget oriented and prefer smaller units. ON the residential front, developers are offering high-quality apartments at competitive rents to try and secure deals. This increased affordability has improved competitiveness in the real estate market and may partially explain a rise in transaction volumes, amounting to more than QR5bn this quarter. We are expecting these market corrections to continue in the medium term,” he said.
About Cityscape Qatar
Cityscape, the world’s leading real estate event portfolio for emerging markets, debuted in the State of Qatar in 2012. The annual event features an exhibition and numerous learning and networking features designed to stimulate the development of Qatar’s real estate industry.
Cityscape Qatar presents an unparalleled line up of opportunities for the local and regional real estate community, as the event allows delegates and visitors to engage in a dynamic environment that gives insight into the future of Qatari and Middle East real estate.
The exhibition showcases infrastructure development projects through Qatar’s National Vision 2030.
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