Security

A latest analysis by Barclays Wealth has discovered that 100% of Qatari high net worth individuals have Qatar real estate investments in their portfolios. Qatari respondents expressed a positive viewpoint for the real estate sector with another 100% stating that real estate would be a secure investment over the next 12 months. That report, Risk and Rules: The Role of Control in Financial Decision Making, is based on a global survey of over 2,000 HNWIs, and provides a profound assessment of wealthy investors to invest in Doha apartments and Doha rentals. Beside considering the different financial persona traits that present amongst wealthy investors, the report shows their views on some of the core asset group types like Real estate; cash; equities from both developed and emerging markets; bonds from developed governments, high yield/emerging markets; and commodities etc. Qatari HNWIs expressed uncertain sentiments towards investment in alternative strategies.

Nearly half think they are neither risky nor safe, some perceive them to be risky while others take the complete opposite view and think they are safe. Equities further draw attention to diverse investment opinions among Qatari investors significant number of respondents find investments in rising market equities risky, however more or less closely the same percentage find them not dangerous. There is, however, a bigger variation when it comes to developed market equities, as an obvious majority of respondents considers them a protected investment opportunity for their portfolio.

Investments in developed government bonds are considered safe by over half of the investors whereas Corporate and investment grade bonds are also considered safe by a huge percent of those surveyed, while only minority views them as risky.

High yield and emerging market bonds are considered safe by a much lower proportion of investors.

With no respondents viewing commodities as very risky and very few seeing this asset class as quite risky, Qatari investors show more confidence in commodities than any other markets in the world. As the report clearly illustrates, there are considerable differences among investors in Qatar so this is a timely token that the wealth management industry needs to tailor its services at the individual level and that one for all approaches will not work.

The upcoming World Cup has cause a boost in property transactions and so landlords have reduced or removed terms in incentive take-up. There are a number of new developments currently in progress. These plans are adding space to a marketplace that is already over supplied. Qatar real estate developers holding debt have also seen descent in their ability to reimburse loans on the back of declining rents in the country. Regardless of regional unsteadiness, Qatar real estate itself is an extremely settled state and the economic projections including rapid growth, sustained expansion of the crucial energy sector and considerable current account surpluses.

Some of the prospects currently in property for sale in Qatar market are the intensification of property related to the 2022 FIFA World Cup, and a rise in demand shared with difficult access to finance by developers that will most likely help lower the relatively high vacancy rates. A few key risks to the Qatar real estate market are that demand is expected to be relatively less than the huge amount of new supply coming on to the market. Hitherto, Qatar has escaped any political turbulence of its own but the neighborhood is disturbed and, particularly if Iran is involved, Qatar could see trouble reach its shores.