Amid economic slowdown, Qatar’s real estate market is expected to continue its strong position regionally into 2009, according to a recently published report by property services leader Asteco.

Citing opportunity cost as a key decision-maker for property investors in the region, Qatar will continue to provide good quality investment opportunities in the  due to its strong market fundamentals.

A growing economy and population built on the back of the country’s expanding oil and gas projects means demand will continue to remain positive in 2009.

Interest from both GCC and expatriate investors continues to be cautious since the last quarter of 2008 but we still expect a healthy outlook for high-end residential properties in Qatar, the report said.

The Pearl, West Bay and Lusail developments commanded the highest sale prices for apartments, while West Bay and Al Sadd areas proved the most popular fully-furnished apartments and demanding the highest monthly rents, it added.

The rents at West Bay for a two bedroom apartment was over QR16,000 ($4393) and three Bedroom over QR24,000 ($6591), while two bedroom apartment in Al Sadd fetched a rent of over QR9,000 ($2473) and three bedroom fetched QR11,000 (3,022).

The West Bay and West Bay Lagoon recorded the highest villa rental rates of QR37,000 pcm.

Asteco Qatar general manager David Oayda said market confidence was a key factor in the success of real estate markets.

"Speculation has been rife in the period leading up to the global slowdown; however we’ve not witnessed strong evidence to suggest an overall softening in prices,” he noted.

"There is still demand for premium grade office accommodation, particularly in Qatar’s newly recognised central business district, West Bay, where multinational companies, particularly within Qatar’s oil and gas industry look to establish offices," David explained.

With existing demand for high quality commercial and residential rental properties, Asteco advised property investors to shift their focus to best managing their property portfolio rather than aiming for resale at this time.

David pointed out that Qatar’s economy was sound and expected to grow in 2009, providing business and employment opportunities for expatriates.

"Coupled with competitive financing options to own developments here, we expect the Qatar market to continue to provide good prospects for the year ahead," he added.-TradeArabia News Service