residential leasing guide - 2012 - kpearce

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www.dtz.com

A Guide to Residential Propertyin Qatar

2012


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A Guide to Residential Property in Qatar

Contents

1. INTRODUCTION 3

2. RESIDENTIAL REAL ESTATE MARKET OVERVIEW 4

3. MARKET PRACTICES 6

4. RESIDENTIAL DISTRICTS 10

5. DTZ QATAR 19

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1. INTRODUCTION

Moving home can be a stressful time, particularly for those relocating from overseas and coming to live inQatar for the first time. For corporate organisations investing significant time and money into recruitment,

finding suitable accommodation is a key element to ensuring that new recruits settle quickly upon arrival.

Whether you are new to Qatar and looking for an apartment or villa for you or your family or a corporate

organisation requiring housing for new/existing employees, we have set out below a guide to the Qatar

Residential Market to help you find an appropriate solution for your needs.

The local real estate market lacks transparency and the purpose of this guide is to share with you our

extensive knowledge and experience of the local market and practices to help to make the process as

straightforward as possible, enabling you to save time searching for housing and to avoid potentially costly

pitfalls.

The guide provides details of the following:

The residential housing market in Qatar

Common market practices/terms that prospective tenants should take into account when seeking new

accommodation

The main residential districts in Doha favoured by expatriates with information on; location, housing stock

and indicative pricing guidelines

DTZ Qatar and the services that we can offer to corporate/individual looking for new housing

Our dedicated residential team with extensive local knowledge can find a solution specifically tailored to your

needs and can offer a range of high quality options available in desirable locations across the Doha

Corporate organisations seeking commercial office accommodation can contact our Commercial Team.

For further information please find our contact details at the back of this guide.

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2. RESIDENTIAL REAL ESTATE MARKET OVERVIEW

2.1. Market Background

Qatars residential market has witnessed significant growth in recent years. This has been driven by rising

population levels, which doubled between 2004 and 2008. Over this period rental inflation was substantial

with rates across all stock increasing by approximately 30% per annum. The Asian Games, hosted in Doha

at the end of 2006 was one of the key catalysts for development of residential apartments along with

expansion of the oil and gas industries.

Post 2008 population growth in Qatar slowed which resulted in reduced levels of new demand.

Developments that had commenced during 2006/07 in response to latent demand and rising rentals started

to reach completion flooding the market with new supply. The impact of this over supply was rentalreductions of between 25% and 40% across the market between the latter half of 2008 and mid 2010.

The latest market indications are that rents are stabilising on the back of increased demand. The main

catalysts for the renewed demand have been the successful Qatar 2022 World Cup bid and the substantial

domestic investment into a range of significant infrastructure projects proposed by the Government over the

next five years which is estimated to be US$ 225 billion. These, in turn, are creating extensive new

employment opportunities which can only be filled by the inward migration of an expatriate work force.

2.2. Demand

Overall demand for residential accommodation is driven by increases in economic activity and population.As outlined above, both of these recorded strong growth over 2004 2008 before a slowdown over 2009/10.

Population growth of 4.25% was recorded over 2011, which created increased demand for housing, leading

to stabilisation of rental levels. That trend is expected to continue over the next five years with future

population growth set to continue at sustainable rates of 3%-7% per annum.

Demand for various types of residential stock/locations is often determined by an individuals level of

income/housing allowance and also cultural aspects.

Most expatriates in Qatar are provided with some form of assistance towards housing through their

employment contract with companies either renting property direct, allocating it to employees on arrival, or

by providing employees with an allowance who must then search for their own property.

2.3. Supply Overview

According to the latest 2010 census, there are approximately 157,000 residential units in Doha in

comparison to 259,000 across the whole of Qatar. That is a significant increase on the previous census in

2004 which recorded 71,000 residential units in Doha and 126,000 across Qatar.

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As illustrated in the figures below, the majority of the residential units comprise apartments, which account

for 47% of the housing stock in Doha.

Figure 2.3: Doha Housing Units by Type (2010)

Source: QSA

The results of the census completed in 2010 indicated that approximately 11% or 17,000 residential units in

Doha were vacant and available for lease/sale at that time. We consider those figures to be reflective of the

current market as rising demand is met with increased supply from new projects.

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3. MARKET PRACTICES

We comment below on standard market practices, which commonly apply to the residential offer in Doha

and should be considered by tenants seeking housing.

3.1. Resident ial Accommodation Types

Residential accommodation typically comprises:

Apartment blocks/towers

Villa compounds

Standalone villas

Most expatriates choose to live either in apartments or villa compounds, which at the mid to upper end of themarket typically benefit from a range of onsite amenities including; swimming pools, club houses and

equipped gyms.

Some of the larger compounds offer more extensive onsite facilities including; squash, tennis and other

sports courts, small supermarkets, beauty salons, coffee shops and spa services, providing a quality family

living environment.

3.2. Furnishing

Residential accommodation is typically offered to tenants on either a fully or semi furnished basis, the latter

includes only white goods and air conditioning units. Occasionally, units are offered completely unfurnishedalthough this is not common practice and tends to be restricted to the lower end of the market.

Whilst some Landlords offer flexibility in terms of furnishing by offering a mixture of semi furnished/furnished

housing units, most will not remove furniture from furnished units so it is important to consider the cost of

shipping personal effects/furniture compared with the additional rental payable in respect of fully furnished

options. This will largely be dependent upon the length of an individuals contract or how long they intend to

remain in Qatar ie those intending to stay only for a short period are more likely to opt for a fully furnished

option.

It should also be noted that it is comparatively expensive to buy furniture in Qatar and the quality is often

questionable.

3.3. Lease Contracts and Legis lation

On the 15thFebruary 2008 Law No.4 of 2008 was introduced, which applies to commercial and residential

property and land leases entered into after the 1stJanuary 2005.

The law is mainly intended to protect both the landlords property and the tenants rights. The key points are

summarised below;

Ensuring that landlords deliver and maintain properties in a state fit for the intended purpose

Prevent landlords from requesting deposits in excess of two months rent on residential property

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The tenant is required to maintain and use the property as agreed and for the intended purpose

Prevent landlords from increasing the rental in excess of rates or terms set by the Ministry of Municipal

Affairs and Agriculture (MMA&A)

The tenant must not sublease or transfer their title without prior written consent of the landlord

The landlord must register the lease with the MMA&A and pay a lease registration fee of 1%

Even prior to the lease expiry the landlord can apply to the committee at the MMA&A to force the tenant

to vacate the premises in the event that the tenant is in breach of the lease, the landlord wishes to

reoccupy the premises in person or if the landlord wishes to undertake substantial works or demolish

the property, subject to certain conditions

The Law established a committee under the MMA&A which has the authority to resolve on an urgent basis

tenancy disputes that arise between landlord and tenants.

With regard to rental increases, Cabinet Resolution No. 9 of 2008 introduced by MMA&A in January 2008,

stated that in cases where lease agreements had been entered into after the 1stJanuary 2005, rentals could

not be increased by a landlord for up to two years, i.e. January 2010, with the exception of leases that

specifically stated rental increases within them.

Law No. 2 of 2010 has now superseded Law No. 4 of 2008 permitting rental increases on residential

properties; however, a rental freeze still applies to commercial and retail premises. The removal of the freeze

on residential rents is in a large part due to the shift in market dynamics diminishing its requirement.

Under these regulations Landlords are required to register lease contracts with the MMA&A and thelegislation states that all contracts must be in Arabic. Most Landlords provide a bi-lingual contract in English

and Arabic, though it should be noted that in the case of a dispute the Arabic will prevail. It is therefore a

good idea to get someone who can read Arabic to check over the contract to ensure the Arabic reflects the

English.

Upon signing a residential lease agreement Landlords will usually require the tenant to provide the following:

Three copies of the signed agreement one for the tenant, one for the Landlord and one to be registered

with the municipality

A copy of the tenants residency permit/Qatari ID card and passport In the case of corporate tenanciesthe company will be required to provide a copy of their CR and ID of the authorised signatory

Rental payment (see note below for further details)

3.4. Lease Terms

Annual lease terms are the most common practice with few Landlords willing to consider leases shorter than

12 months.

Tenants looking for shorter term options are restricted to serviced apartment providers operating in the local

market, which offer fully furnished accommodation along with cleaning services and inclusive of; utility bills,

telephone, internet and satellite TV.

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Tenants willing to commit to longer lease terms, i.e. two or three years can often negotiate a rental discount

from the headline rates to reflect that commitment. You will need to check whether there are any rental

increases built into extended lease terms.

Check whether the contract offers an option to break/terminate the lease early. A few Landlords are willing toincorporate a break clause but subject to an extended notice period or a penalty clause. It should be noted

that in cases where a tenant has to leave Qatar for good for whatever reason they can walk away from their

lease obligations by giving the Landlord at least 2 months notice. This provision is usually catered for by way

of a Diplomatic Clause in the lease.

3.5. Rent Payments

Landlords typically require rental payments to be made by post dated cheques, which are still common place

in Qatar. The payments are usually required from a Qatar based account, which can make it difficult for

individuals to rent property until they have secured their residency permit, enabling them to open a local

bank account.

Most Landlords will accept rental payments monthly in advance, although some still request payments

quarterly in advance.

Corporate organisations renting property direct will occasionally offer to pay six monthly or annually in

advance in return for securing a rental discount. Companies leasing multiple units or whole

compounds/blocks can expect to obtain discounts of 10% - 20% from market rates to reflect their

commitment.

3.6. Other Charges

Rental rates are usually quoted inclusive of service charge. In some cases rents are also inclusive of utilities,

internet and cleaning, although this is more typically found within serviced accommodation. Again you will

need to check your contract.

Apartments and villas, including those on compounds are usually separately metered for utilities and

Landlords often require these to be registered in the tenants name. In such cases, tenants will be required

to note down a meter reading and visit Kahramaas (the local utility company) offices with the Landlord to

transfer the bills into the tenants name.

Apartment developments at the Pearl and some of the towers in West Bay also have air conditioning

provided to them through a third party provider known as Qatar Cool. Tenants renting within thesedevelopments should check whether rental rates are inclusive of cooling or if additional charges apply.

As outlined in the Rental Law, rental deposits should not exceed the equivalent of two months rent.

3.7. Maintenance

The terms of the contract should state that the Landlord is responsible for the maintenance and up keep of

the property. It is worth checking what provisions the Landlord has in place for maintenance and how to

report any issues.

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3.8. Check List

When inspecting potential properties ensure to check the following items:

Car parking Check whether there are there any spaces designated with the apartment/villa

Plumbing Check that taps, showers, baths and toilets are all in working order

Air conditioning Check that the AC works and will cool the rooms sufficiently

Electrics Check that sockets are in full working order

Common areas If leasing an apartment in a block or villa on a compound check that common areas

such as; landscaping, lifts and facilities are maintained, cleaned and kept in good working order

Furnishing Check what furnishing is included with the property (i.e. are kitchens appliances included

and fully equipped) and that items are in good repair

Entertainment systems Which satellite TV packages are accessible or can be installed, is Wi-Fi internet

access already available or are their additional costs to have these installed

Finishes S/F properties are often exclusive of finishing details such as curtains, check whether these

are included

Health & Safety Does the property have smoke alarms installed and fire extinguishers

Rules and Regulations Landlords of multiple unit developments such as compounds and apartment

blocks should provide a tenant handbook outlining rules and regulations for the development along with

details of Health & Safety procedures in an emergency, we recommend reviewing this document if

available

3.9. Property under Construct ion

A number of new developments that are in the final stages of construction can still suffer from long delays

before reaching completion as a result of issues relating to connection to infrastructure and utilities.

In the event that you have identified a potential property to rent but it is not completed, it is worth checking

with the Landlord when they expect to receive connection to utilities and when final completion certificates

from Civil Defence and the Municipality will be received to allow occupation.

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4. RESIDENTIAL DISTRICTS

The map below illustrates the location of the main expatriate housing districts in Doha. We have provided

additional information on each of these districts below.

Figure 4.1: Expatriate Housing Districts

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4.1. South West Doha

Figure 4.2: South West Doha

South West Doha, as a location, offers access to a number of international schools including Doha College

and the American School of Doha. It is therefore a popular area with families and also benefits from

proximity to Villaggio, which is currently considered to be Dohas prime shopping mall.

The housing stock in these districts primarily comprises residential compounds incorporating three to five

bedrooms villas In some cases compounds also incorporate two/three bedrooms apartment

accommodation.

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The compounds often benefit from a high level of onsite facilities including as standard; club house, games

room, gym and outdoor swimming pool(s).

The higher quality compounds often offer additional facilities, which may include; male & female jacuzzi,

sauna, steam room, small supermarket, laundry, squash and tennis courts, childrens play area, and ageneral sports court.

Ain Khaled Gate, a particularly large compound, also offers a cinema, ladies salon, restaurant and Costa

Coffee outlet.

Rental rates in these districts vary according to; exact location, villa size, furnishing, quality of finishes and

onsite facilities.

Rentals for a standard three bedroom villa, semi furnished villa on a compound with limited amenities start at

around QR 13,000 per month. The rates increase to around QR 22,000 per month for larger five bed villas

with high quality finishes on compounds with above average facilities.

4.2. Al Sadd and Bin Mahmoud

Figure 4.3: Al Sadd and Bin Mahmoud

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The Al Sadd and Bin Mahmoud districts are located within central Doha and are generally well established.

They typically comprise a range of residential and commercial properties and therefore residents benefit

from restaurants and shops as well as ease of access to all areas of Doha.

The housing stock primarily comprises mid range apartment blocks offering; one, two and three bedapartments. It should be noted that availability of one bed apartments is limited compared with larger units.

There are also several serviced apartment blocks operating in these areas. These developments also

include cleaning services and can often be rented on shorter flexible terms.

Onsite facilities vary with the more basic blocks providing only very limited facilities. Others at the higher end

benefit from swimming pools, gym and spa type facilities.

Rental prices range from QR 6,500 for a basic one bed flat in a block with limited onsite facilities up to

QR 15,000 per month for a high quality, fully serviced three bed apartment.

4.3. Gharaffa, Duhail , Messi lah and Luqta

Figure 4.4: North West Doha

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Gharaffa and the surrounding district are situated close to Education City and also house a number of new

schools including ACS and Sherbourne. The other benefits of these areas are ease of access to West Bay/

Diplomatic District, Landmark shopping mall and a LuLu hypermarket. The upgraded D-Ring Road, which

opened earlier this year, has reduced the approximate drive time to the Airport to approximately 15 25

minutes.

There are a number of new retail developments scheduled to open within these areas over the next few

years including Doha Festival City with an IKEA, Gulf, Ezdan and Northgate Malls.

These districts comprise a mixture of local Arabic housing stock and new residential compounds offering

three to five bed villas.

There are a large number of residential compounds with similar facilities to those found in villa compounds in

South West Doha. Rental rates range from QR 11,000 18,000 per month according to the size of villa,

quality, finishes and onsite amenities.

4.4. New Doha, Dafna and West Bay Lagoon

Figure 4.5: West Bay

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These districts offer excellent access into the West Bay/Diplomatic District, which is considered as Dohas

new CBD, housing a range of modern office towers, five star hotels and City Center shopping mall.

The housing stock is primarily comprises large stand alone villas of five bedrooms plus with gardens and in

many cases private swimming pools. There are a limited number of smaller residential compounds within theWest Bay Lagoon Complex and in Dafna which provide shared facilities.

Rental prices start from QR 20,000 per month increasing to in excess of QR 40,000 per month for waterfront

properties on the Lagoon.

4.5. Diplomatic Dist ric t and the Pearl

Figure 4.6: Diplomatic District and the Pearl

The majority of Dohas luxury apartment stock is found within the Diplomatic District and the Pearl. These

areas are considered as the prime housing locations given their relative proximity to the CBD, City Center

shopping mall and the luxury hotels.

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Regarded as the new city centre of Doha, the Diplomatic District is an area, which predominantly comprises;

luxury, high-rise apartment developments with recreational facilities onsite including; swimming pool, spa

area, business centres, coffee shop, gym and childrens play area. The majority of developments in this

district are owned by local developers and investors who subsequently lease them to international

companies and expatriates. DTZ estimates that there are approximately 6,500 residential apartments in theDiplomatic District. Of that stock DTZ research indicates that 68% of the existing residential stock consists of

two and three bedroom units.

The luxury apartment market has witnessed a significant increase in supply recently. New developments

include the Pearl; a mixed-use development, built on 4 million sq m of reclaimed land off the eastern coast

close to West Bay Lagoon. The final project will comprise 16,000 residential units accommodating

approximately 40,000 residents.

Apartments, villas and townhouses in the two main phases of Porto Arabia and Viva Bahriya have gradually

been launched since 2004. To date eleven towers or approximately 2,200 apartments have been handed

over. UDC the master developer expects this figure to increase to 8,000 by the end of 2011.

The Pearl as a development offers a master planned environment with phase one, Porto Arabia offering a

3.63 km promenade complete with shops, restaurants and cafes. Each of the apartment towers benefits

from a high level of amenities comparable with those outlined above for the apartment developments in the

Diplomatic District.

Lagoon Plaza Zig Zag Towers, situated adjacent to the Pearl, incorporates 750 apartments offering one,

two and three bedroom units. The development sits above the Lagoona Mall, which is scheduled to open

over the latter half of 2011 and will provide onsite access to retail, restaurants and coffee shops.

One difference between the Pearl/Lagoon Plaza and the Diplomatic District is that the majority of theapartments in the former have been sold on a unit by unit basis to individual local and foreign investors,

therefore apartments in the same tower are under multiple ownership making it difficult for corporate

occupiers looking to secure multiple units from a single owner.

Apartment rentals vary significantly from tower to tower and according to whether units are offered semi or

fully furnished and whether services such as internet, cleaning and satellite TV are included. Indicative rental

rates are as follows:

One bed apartments QR 8,000 to 12,000 per month

Two bed apartments QR 10,000 to 15,000 per month

Three bed apartments QR 13,000 to 18,000 per month

In general the apartments at Lagoon Plaza are available at the lower rates with the most expensive units

found on the Pearl.

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4.6. South East Doha

Figure 4.7: South East Doha

The Southern districts benefit from proximity to the Airport and also access to the older city centre, which

offers souk style retail. The Mall on D-Ring and large LuLu hypermarket provide retail amenities in these

areas.

The housing stock is generally older and mixed with the area between the D and E Rings roads offering a

mixture of standalone and compound villas. The more central districts mainly comprise more basic

apartments blocks.

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The smaller villa compounds in these districts are generally older with more limited onsite amenities in

comparison to some of the modern housing developments. These factors are reflected in the pricing with

four bed villas starting from QR 11,000 to 15,000 per month.

Apartment rentals in the basic blocks which do not have onsite facilities start at QR 3,500 per month for aone bed apartment. Rents increase to QR 8,000 per month for two bed apartments in the more modern

blocks with swimming pools and gym facilities.

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5. DTZ QATAR

DTZ Qatar is part of the DTZ Group, a global real estate services firm with offices in 194 cities and 45

countries (across Europe, Middle East and Africa, Asia Pacific and the Americas). DTZ Qatar provides

advice and on-the-ground delivery to investors, developers, corporate and public sector occupiers and

financial intermediaries working across the breadth of their real estate needs, spanning all real estate sectors

and encompassing a range of services.

The DTZ Qatar office was established in August 2005 with the core management team made up of three

British expatriates with a combined of experience of over 15 years working and living in Qatar.

If you are an individual searching for residential property in Qatar, our professional team will find a solution

specifically tailored to your needs. Whether you are looking for an apartment or villa for your family we have

a range of high quality options available in desirable locations.

If you need to house employees, DTZ can offer you a bespoke service. DTZs professional team, based in

Qatar has unparalleled knowledge of the local market and will put the skills of our experienced team at your

disposal. Our service is truly bespoke, as we understand that each home search needs to be tailored to suit

your company and the individuals' needs. We can make the process of sourcing housing solutions

straightforward and cost efficient, enabling the company and individuals to focus on their core business

activities.

For further information or to view details of available properties please visit our website at

www.dtzqatarproperties.comor contact one of our specialist agents at the following:

Residential Enquiries

Ahmed Shahawi

Sales Manager

DTZ Qatar LLC

Tel: +974 4483 7398

Fax: +974 4483 7408

Mobile: +974 5523 9217

Email: [email protected]

Kasia PearceSales Manager

DTZ Qatar LLC

Tel: +974 4483 7398

Fax: +974 4483 7408

Mobile: +974 5535 6121


Nabeel Temraz

Sales Manager

DTZ Qatar LLC

Tel: +974 4483 7398

Fax: +974 4483 7408

Mobile: +974 5569 8630


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http://www.dtzqatarproperties.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.dtzqatarproperties.com/


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Commercial Office Enquiries General Residential Enquiries

Jonathan Wright

Surveyor

DTZ Qatar LLC

Tel: +974 4483 7398

Fax: +974 4483 7408

Mobile: +974 5551 9179

Email:[email protected]

Nusair AlEjli

Head of Residential

DTZ Qatar LLC

Tel: +974 4483 7389

Fax: +974 4483 7408

Mobile: +974 5559 1961

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

residential leasing guide - 2012 - kpearce

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