Big News: Sakan Acquires Qatar’s hapondo in Strategic GCC Expansion
Qatari real estate technology startup, hapondo, organized a panel discussion entitled: “The Impact of the World Cup 2022 on Qatar’s Real Estate Market”, moderated by Ahmed Al Khanji, CEO of hapondo, and hosting Ammar Hattab, partner, Ernst & Young; Anthony Awkar, managing partner, Capstone; and Mohammed Al-Sulaiti, board member, The Seven Real Estate. The four speakers touched on several topics and issues, analyzing the current landscape of real estate in Qatar and its future prospects.
The panel discussion- held at Flare Business Center- also explored the positive impact on Qatar’s real estate market as a result of hosting of the upcoming World Cup. The panel of experts spoke on the price changes seen in Qatar’s real estate market, leading up to the World Cup. In this regard Awkar said: “We aim to achieve consistency in the prices of rental properties. It is not really a good idea to leave a healthy rent that brings a long-term and sustainable benefit, in exchange for speculating and betting for a short time on something uncertain.”
“People in Qatar have a FOMO (fear or missing out) when it comes to rising rental value. While tenants hear about the possibility of significantly increasing rental prices, owners take advantage of this gossip to do so. But this is not always safe or guaranteed, and often it is just speculation and rumors that don’t actually match the market.” Awkar added.
The discussion highlighted the role played by the Qatari government in helping support and promote the real estate market. Speakers touched on the importance of government initiatives to create a climate conducive to attracting foreign direct investment, and the news of the establishment of the government real estate advisory committee and the great role it will play in controlling the market.
In this context Al-Sulaiti said: “The government needs to form partnerships with the private sector to support the development of the real estate industry properly. For example, a company like hapondo can support this move by collecting and analyzing information to help regulate the market. This is the key to the solution, as sound data is the basis for making sound decisions.”
The panel discussion did not lose sight of the impact of the pandemic, which casted a shadow on the Qatari real estate market: the speakers agreed that the years between 2019 and 2022 were exceptional due to the Coronavirus. Hattab touched on this, saying: “After these years we have witnessed many fluctuations, but we will see a correction in the market and not a collapse in it. If we monitor growth in 2023, we should expect to see prices close to pre-pandemic prices in 2018. We can consider this to be the expected correction, as the return of real estate growth is one of the most important indicators of the Qatari market and business.”
On the specificity of the Qatari real estate market and the issue of the swing of rental prices: “What makes the Qatari market different from others, is its small size, which can be taken advantage of.” Awkar said. “Small is special.” he added.
“We are currently witnessing a decline in commercial rental prices, and we believe that is where it should be. The rent between 2012 and 2016 was very high and it was very difficult for companies to open offices and achieve prosperity, but now it is better” Awkar added.
“We can lower prices but keep or increase service fees as a mechanism to get people to buy. They are more likely to buy if the price of the property is lower, without hesitating to pay the service fee.” Hattab said.
At the end of their discussion, the experts agreed on the famous Arabic saying that “real estate can get sick but never die” and that there is always opportunity and positive growth in the sector.
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Last Updated on August 25, 2024 by Safiya K
