Rents to continue rising by 10% until 2022
Rentals across the country have witnessed a rise by 15% in the first half of 2014, according to market experts. And this escalation will continue at an average of 10% per year until 2022.
The steep rise in rents has been attributed to the increasing costs of land value and construction. Construction costs, for instance, have increased by 20-30% over the past one year, while land prices have gone up to 70%, The Peninsula has reported. Rents of brand new residential and commercial units too have increased by 25-50%.
The report quotes Ali Obaidily, Group CEO, Ezdan Holding, saying “The rentals will steadily go up from mid-2015, when the market is expected to witness a fall in the supply side, especially with the launch of the execution phase of mega projects when the country will receive a large number of middle-level professionals accompanied by their families.”
Housing rentals have been a primary concern for residents in Qatar, mainly because companies don’t increase the housing allowance or salaries of employees despite the rise in rents. Read our earlier article here.