House prices in Qatar may fall 10pc

House prices in Qatar are expected to ease 10 per cent this year but a stable economic outlook and rising population in the Gulf state due to the expansion of energy production facilities are likely to cap further falls.

“We believe that the prices will not drop significantly, however there will be a slight correction,” property consultant Colliers International general manager Reg Barichievey.

“The impact of the global turmoil has caused liquidity to dry up which has resulted in slow downs and cancellations of developers and a lack of finance for potential purchasers.”

Prices fell around 10pc in the fourth quarter last year, the first quarterly decline during the year, he said.

Colliers had not seen any fall in rents of residential property while office rents fell 10-15pc in the fourth quarter from the previous quarter, he said.

Official figures released yesterday show that the rental index gained 13.7pc in the fourth quarter compared with a year earlier.

Residential rents in the country may decline about 10pc this year as the economy slows on the back of falling oil prices, Global Investment House said. Its said it expected the contribution of the real estate sector to ease to 9.7pc of GDP from 10.7pc estimated for last year.

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