112% increase in rental allowance in Qatar during the World Cup… Will the fans give in?

Landlords in Qatar are seeking to reap the benefits of the Gulf emirate’s hosting of the first FIFA World Cup in the Middle East and North Africa region, which has caused an exorbitant rental allowance for potential visitors and also affected local tenants.

Qatar is a peninsula located in the middle of the western coast of the Arabian Gulf, with an area of ​​only 11,521 square kilometers, the majority of which is a flat rocky surface covered by a low range of plateaus and hills, on which about 2.6 million people live (88% of whom are foreigners).

The accommodation options for FIFA World Cup Qatar 2022 fans range from three, four and five star hotels, luxury apartments and villas, floating hotels, fan villages, cabins, holiday homes with the possibility of staying with family and friends.

While the Qatari authorities tried to provide many alternatives to meet the demand of 1.2 million potential visitors for the month-long tournament, property owners and property owners planned to seize the opportunity and increase their wealth, which the current tenants forced to with up to 40% for the rent of their homes, with the registration of new contracts in which contracts extend to two years.

As for those who refused, their fate was to be evicted, displaying the apartments on the websites of international and local companies involved in housing World Cup fans. Tenants said that they had already had to move out of the homes they had lived in for years because of the rent increase.

Even hotels, many of them had to vacate long-term tenants to allocate them to the teams participating in the tournament and the organizers.

Increasing the rental allowance on long-term contracts or evicting the current tenants… Property owners in #Qatar are trying to reap the benefits of hosting the first football World Cup in the region by the Gulf emirate

FIFA alone has booked thousands of hotel rooms and attached residences for players, staff and other officials. Local organizers have signed agreements to allocate around 60,000 flats to the public.

The high demand for booking accommodation centers in Qatar has been accompanied by a significant increase in rental allowance. Most one-bedroom apartments in the Pearl District (an artificial island known for its expat residential towers) cost more than $1,000 a night during the tournament, compared with currently about 9,500 riyals (about $2,600) a month, according to ValuStrat -data. .

Note that the average rent for apartments in this area during the last quarter of last year did not exceed 8000 riyals (about two thousand dollars).

Property owners in Qatar list their properties on Iskan websites such as Airbnb and Booking.com at prices of more than four million Qatari riyals (more than one million dollars).

The average monthly rental price in the country this September is about $34,000, compared to $72,000 during the tournament, an increase of 112%.

During the last Russia World Cup in 2018, Airbnb accommodated more than 277,000 fans across Russia with an average price per booking, typically three to four nights, of $55.27 per person for one night.

Despite this, fans at the time expressed their dissatisfaction with the “high prices”, raising questions about the extent to which fans of the World Cup in Qatar will give in to these prices offered in the Gulf country. These prices may present a valuable opportunity for Qatar’s Gulf and Arab neighbors to provide cheaper accommodation for fans with offers on flights/travel to and from Qatar.

Meanwhile, Ramy Morsi, co-founder of “BaytTravels” for tourist housing in Qatar, explained that they advised their clients to get housing at the lowest possible prices, warning that the determination of the rental allowance is not in their power.

During the 2018 Russia World Cup, Airbnb hosted more than 277,000 fans at $55 per person per night, and fans complained at the time about the high prices. Will he relent and pay $72,000 for a month’s stay during the 2022 World Cup in Qatar?

“The market is changing,” he told Doha News. “We believe the peak of the accommodation market for the World Cup will be in mid-September when prices are at their highest and most private companies will announce their accommodation. From then on, they will start Prices drop or stay the same.

Qatar 2022 World Cup CEO Nasser Al-Khater said in an interview with Qatar News Agency (QNA) that his country has provided housing to all World Cup fans at prices that suit all groups, pointing to the periodic update of rent. allowance, and the presence of new apartments from only $80 per night. .

The decision of the Qatari Ministry of Trade and Industry, No. 46 of 2021, clarified the maximum rental prices for hotel rooms, and the like, during the 2022 World Cup.

The rental prices, according to the decision, ranged between 464 Qatari riyals (about $130) as a maximum for a standard hotel room, and 2801 riyals (about $770) as a maximum for accommodation in five-star hotels and resorts.

However, it is not clear the legal consequences that landlords who violate these prices may face in light of the currently announced rent allowance.

The changes and the increased demand for accommodation in Qatar led to a rise in the real estate market there after more than seven years of falling demand, as entire buildings remained empty amid the large supply of residential and commercial property.

And “ValuStrat” ​​​​monitored an increase in rental allowance for the first quarter by 3.3%, supported by the recent increase in demand, and the increase in average prices in the Pearl area by 19%.

The high rental prices in #Qatar could present a valuable opportunity to its Gulf and Arab neighbors to offer cheaper accommodation for fans with offers on flights/travel to attend the Qatar 2022 World Cup matches.

Knowing that housing was the second largest contributor to the Qatari inflation rate for June 2022, which is 5.4%, with the country suffering from an increase in rents at a faster pace than any other Gulf country than following the presentation of the World Cup soccer tournament.

Despite this demand, the real estate price index issued by the Qatar Central Bank has fallen by 30% compared to what it was in 2015. Economists attribute this to the uncertainties surrounding the future of the Qatari economy beyond the oil and gas sector.

After the World Cup, the number of low-income foreign workers is expected to decrease following the completion of World Cup-related construction projects. Joseph Abraham, chief executive of Commercial Bank of Qatar, speculated in a recent interview with Bloomberg that the increase from the World Cup would be “relatively temporary” and that it “declines significantly after the tournament with the increase in supply, so this component of the inflation indicator will fall.”

Leave a Comment