Implications of corona for real estate investment in Qatar

Nahla Abdel Moneim

As the corona virus spreads globally, a shadow is being cast over various economic returns, especially investment in the real estate sector, which is particularly true in Qatar, where real estate is one of the most important sources of revenue.

According to the Market Watch website, the Qatari construction sector was expected to achieve an annual growth rate of 9.6% between 2019 and 2024. This growth was originally dependent on the investments associated with organizing the 2020 World Cup through development projects, infrastructure, road spending, the transportation network, subway development, sports stadiums and hotels.

Severe losses

However, with the global stoppage of sporting activity, it is likely that the World Cup events will be delayed in light of the postponements of qualifying matches, revealing the extent of the financial losses to Qatar from this important sector. More dangerously though, Arab News reported that the authorities in Doha are compelling construction workers to finish building and developing stadiums despite the spread of the corona virus in order to mitigate the losses.

Media sources have monitored photos and videos of foreign workers in Qatar continuing construction, mainly concentrated at sites linked to World Cup projects, despite the Ministry of Health’s warnings about the danger of corona. However, with these images causing a humanitarian scandal for Doha, it is likely that these actions will reduce.

Whitewashing

As a result of the expected losses for the real estate market in Qatar, the authorities have interfered with a campaign to claim through companies that the losses will be short and reversible.

Al-Asmakh Real Estate Projects issued a statement to promote the real estate sector in Qatar and claim that the losses will be quickly remedied and that the state is helping in terms of reducing the burdens. But the company and other institutions have ignored the reality of the numbers and expectations of the sector’s losses due to its association with canceled and postponed activities such as the FIFA Club World Cup, World Gymnastics Championship, Asian Basketball Championship and other events.

Instead, companies trying to help the government to whitewash the abuse of workers and are promoting that the authorities will help warehouses, workshops and exhibitions in order to help the commercial sector.