2022 FIFA World Cup’s impact on Qatar’s Real Estate

Sakera Patel S

Introduction

Qatar is one of the world’s richest countries in terms of GDP per capita. Qatar is wholly ready to host the 2022 FIFA world cup after Countries like Brazil and Russia staged the FIFA World cup. Back when these countries hosted the world cup, they saw stagnant growth in their Real estate.

The question here is; will Qatar achieve the same?

Before we get to the future of Real Estate in Qatar, let’s look into the current scenario of Qatar’s real estate. The statistics of the fourth week of real estate transactions in Qatar have been recorded as QR350.6 million during the time of February 20 to 24 with a decline of 28.3% when compared to the previous week, while during that time the country witnessed the execution of 96 deals in the sector with a 21.3% growth and an average of QR3.65 million per deal, according to the real estate bulletin issued by the Registration Department at the Ministry of Justice from 20 to 24 February 2022. According to a recent report from the Market Research Department at Utopia Properties Company, through the execution of 46 vacant land deals that past week, they totaled a total value of QR109.9 million. That translates to an average of QR2.4 million per deal.

And let me tell you this: It’s just getting started because we are about to analyze the Future of Qatar’s Real estate and how the 2022 FIFA world cup is going to impact the Real estate of Qatar. Among the other key factor or trends that will boost its Real estate, the prestigious event, FIFA world cup will be one of the factors that will help in boosting Qatar’s Real estate. With opportunities also increasing in Qatar, tourists will also come in large numbers. Tourists will all be searching for secure lodging near the stadium. Every real estate company in Qatar will work together to help Qatar’s World Cup effort. When 2022 rolls around, the country will be entirely different than before.

The World Cup Project includes a metro with 3 lines, stadiums, 2 new cities, and more. The result of all of this investment is the country spending less money on buildings, especially homes, in the long run. An estimated $200 billion will be spent on infrastructure projects, which range from stadium construction to highways, airport expansion, and hospitals. This massive amount of spending is linked to the country’s hosting of the upcoming World Cup. Different companies are being invited to make their bids on investment opportunities.

Stadiums

A total of 8 stadiums are built for the FIFA World Cup 2022. Among these 8 stadiums, Stadium 974, is constructed from 974 Colorful steel shipping containers and it is the 1st Demountable stadium in the world. This can be a game-changer for the hosts of future mega-events. After the FIFA World cup, 2022 is concluded, the stadium will be dismantled. It will be either transported to another country or will be put together to form many sports complexes. After the dismantling of the stadium, the location will become a modern waterfront with restaurants, retail options and so much. As for the Lusail Stadium, which has a capacity of 80,000, will be renovated into a public space including, schools, cafes, sports facilities, and health clinics. This will directly or indirectly create more Real Estate opportunities.

Accommodation

Around 850,000 foreign visitors are predicted to need accommodation in the country and Qatar will need to provide more than 60,000 hotel rooms on the eve of the FIFA world cup. Other than this, Abedouin-style accommodation in cruise ships and desert camps will provide visitors with a sense of what desert life is like. When it comes to mid-range hotels, [Qatar] is lacking in 2-star and 3-star hotels and this is something that hospitality investors are looking at.

Expansion of the Hamad International Airport (HIA)

The expansion of the HIA is a vital part of the success of the 2022 FIFA World Cup and it will be groundbreaking, redefining the airport experience. The lush, redesigned garden areas and flowing water features will boost the level of comfort. In addition, The Al Mourjan lounge features commercial areas, green space, spas, gyms, restaurants, business centers, and other facilities for passengers. The airport city will also offer numerous investment opportunities including a free trade zone, an office and business complex, and several hotels. The airport city is expected to change almost every aspect of real estate in Qatar.

One of a kind entertainment destination

The west bay north beach project encompasses both a public beach and 12 private beaches across an area of 60,200 square meters and with a 1.2-kilometer length. Not only does it have beaches and bike paths, but it also has cafes, playgrounds, multiple parking spaces for cars and bikes, and sports fields. The surrounding areas will connect to Lusail through Public transport network, pedestrian paths, and cycling lanes, and this will connect both the public and commercial activities. Being right on the water, the site is located in a prime location and will not only add considerably to the City experience but also the surrounding real estate prices. That is why it is designed to appeal to all potential users, like residents and visitors alike.

Qatar Rail

Qatar Rail has shown off many Real Estate opportunities at transit-oriented developments and in retail settings near metro stations.

Also, Doha Metro is the most prominent and visible project that represents an infrastructure investment of $35bn. It is set to offer opportunities for investing to the private sector in the fields of construction, performance, and the upkeep of the rail. The rail transit stations will act as neighborhood hubs with pedestrian-friendly designs that will promote public transit use and enhance overall accessibility. The transportation projects, like the Lusail line, in addition to efforts to earn more non-fare revenue, stimulate economic growth, and encourage the private sector to invest. Over a total of approximately 15,000,000 square meters, these projects comprise both commercial, residential, and office spaces that are on the various lines of the Doha Metro Project. The area surrounding Al Asmakh Metro Station has a wide variety of shops and restaurants where people can grab a bite while they’re en route. It is an important stop between Al Khor and Doha International Airport in addition to being very close to some of Qatar’s key commercial hubs like West Bay and Business Bay.

Conclusion

Qatar, while building the infrastructures has avoided the mistakes made by the previous hosts in the development of Inventory and Infrastructure. All the Real Estate companies of Qatar had a role to play; big or small because after the FIFA World cup 2022 is over, Qatar will be a changed country. 

Kailash Nagdev, Managing Director at Yougov told the delegates that the investor sentiment towards the World Cup is positive as the investors and brokers are encouraged by International Football event.

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