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A seminar titled “Real Estate Sector after the Recession” was organized jointly by Doha Bank and Doha Bank Assurance Company at a high profile gala dinner on 26th October 2009 at the Al Wajba Ballroom of Hotel Intercontinental. With Qatar’s real estate sector forecast to have 10% houses empty by 2010, a discussion on real estate couldn’t have been more timely.
The meeting was attended by HE Sh. Abdulla Saud Al Thani, Governor, Qatar Central Bank, Sh. Fahad Mohd Jabor Al Thani, Chairman Doha Bank, Sh. Abdul Rehman Mohd Jabor Al Thani, Managing Director Doha Bank, Mr. Seetharaman, CEO Doha Bank, Mr. Edd Brookes, Director, DTZ Middle East, Mr. Jean Paul Pirog, Senior Underwriter, SCOR, France, Mr. Noman Ali Executive Manager, Assurance & Advisory Business Services, Ernst & Young, Mr Louis Scotto, Head of Retail Banking Doha Bank and Mr Xavier Landrin, Structured Finance Officer, Al Arrab Group.
Delivering his keynote speech Mr. Seetharaman said, “In terms of business Qatar has performed reasonably well, with a real GDP growth of 9-10%, despite the crisis. However, as far as real estate is concerned, there has been a sharp decline at the Landmark development, The Pearl, where average unit prices have dropped 35%, indicating a sharp fall in demand from foreign investors. Average villa rents are said to have fallen 15-20% in the first two months of 2009. Apartment rents remained stable, suggesting that apartment rents, especially for smaller units, are more resilient.”
Mr Seethraman continued, “Office rents are unlikely to rise in Qatar until the end of 2010. High levels of supply coming to the market and dampened demand on the back of the global financial crisis would keep pressure down on rental rates.”
Mr Edd Brookes, Head of Valuation for DTZ Middle East, is a Chartered Surveyor and has lived in Qatar since 2005. He spoke at length on the implications of the recession from an insurance perspective in terms of Real Estate Valuations, contractors policies and exposure of banks to the real estate sector.
Mr Jean Paul Pirog, Senior Underwriter with SCOR, France, in his presentation said, “a ‘zero’ fault or defect in construction is elusive and that any new construction project can suffer damage which may not become apparent immediately.” Through visual presentations he demonstrated how faulty constructions can have a long term impact on the economy.
Mr Louis Scotto of Doha Bank highlighter the lessons Qatar property market should learn from other GCC market and provided an overview on the challenges in the Qatar property market.”
The panel discussion was followed by a vote of thanks and presentation of mementoes to the speakers followed by dinner.
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H.E. QCB Governor, H.E. DB Chairman, H.E. DB MD and executive management of DB
Mr. Seetharaman, DB CEO moderation the panel.
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