Rents likely to fall as suburbs ‘lure’

By Ramesh Mathew/Staff Reporter

The availability of new residential properties outside Doha these days at lower rents will prompt many city residents to move out in the coming months, say real estate agents.

The demand for residential properties in the city is falling and inquiries dwindling with each passing day, officials of some prominent real estate firms told Gulf Times yesterday.

“When a big building in Abdulla bin Thani area was earmarked for demolition, most of its tenants – that included families – preferred to shift into properties outside the city limit as rents there were less compared to properties available in the city,” the manager of a real estate firm manager said.

He added that inquiries made by his firm revealed that even owners of most commercial establishments operating from that building Abdulla bin Thani area had little hesitation to move out to properties outside the city.

While commercial properties in Doha, particularly in locations such as on Salwa Road and Airport Road were still in demand, the same could not be said about the other available options in the city.

Saleh Shabban, a real estate agent, confirmed that most inquiries were received for locations with adequate space for parking.

“Most entrepreneurs also seek office spaces in locations having less traffic congestion,” he said.

Endorsing similar sentiments another real estate professional said when infrastructure facilities in newly-developed locations were completed there would be more demand for properties there.

“While considering shifting, residents are also looking for the availability of facilities such as travel convenience, proximity to schools and healthcare institutions, and of course the presence of shopping malls,” he observed.

In Wakrah, many new ventures, including hospitals and clinics are coming up and this could be the reason why residents are looking for accommodation in the area, added the agent.

Inquiries in the real estate market found that Wakrah was fast becoming one of the most sought after city suburbs for residents due to the availability of a large number of new accommodations. Advertisements placed in the newspapers are proof of this.

Most real estate agents generally feel that it would take a considerably longer time than expected for recovery in upmarket areas such as West Bay and its neighbouring locations.

“Even though a large number of properties are lying vacant in these areas, the number of fresh inquiries is bare minimum,” said an agent, who claimed dealing only with high-end clients.

The availability of independent villas for as low as QR7,500 and 8,000 in locations like Ain Khaled has prompted some residents, who were occupying two- or three-bedroom apartments in places like Muntazah for QR8,500 and QR9,500, to shift there, another agent said.

“This is an example of a mass migration, from the city to the suburbs; that could happen in the coming months,” he added.