The General Authority for Real Estate Regulatory “Aqarat” confirmed that the law regulating real estate coding enhances confidence in the market, opens new horizons for investment, supports the development of the real estate market, and enhances equal opportunities to participate in it.
Real Estate said in a post on the X platform that the draft law comes in a step that reflects the State of Qatar’s direction towards developing a more innovative, efficient and competitive real estate system. The draft law establishes an integrated legal and regulatory framework for the coding and trading of real estate assets, which enhances confidence in the market and opens new horizons for investment. It supports the development of the real estate market and promotes equal opportunities to participate in it.
Raising levels of transparency and trust
Aqarat added: Real estate tokenization aims to expand investment opportunities, enhance the liquidity of real estate assets, and attract a broader segment of investors, while supporting innovation and raising levels of transparency and confidence in the real estate market.
Regarding the most prominent advantages of real estate tokenization, Aqarat confirmed that these advantages include expanding and diversifying real estate investment opportunities, enhancing liquidity in the real estate sector, in addition to allowing participation for a wider segment of investors.
Encouraging and stimulating innovation, enhancing local and foreign investment, and attracting new capital in the real estate sector.
The advantages also include raising the levels of transparency and trust through direct linking with the real estate registration at the Ministry of Justice.
The draft law, which was prepared by the Ministry of Justice in cooperation with the Ministry of Municipality, the Qatar Central Bank, the Qatar Financial Markets Authority, and the Real Estate Regulatory Authority – Real Estate – comes in line with the ministry’s strategy, and in an effort to diversify real estate products in order to enhance attracting investments and provide opportunities for all investors, by establishing an integrated legal framework for real estate coding, which defines the nature of the real estate code and the rights of its owner, regulates its trading, and links it to the system. Real estate registration directly, in a way that ensures the security and reliability of transactions, the protection of investors, market integrity and transparency, and achieves a balance between encouraging innovation and risk management, in line with the third national development strategy 2023-2024, which aims to provide an attractive regulatory environment for investments and service development. Government and digital transactions.
Diversify investment portfolios
On the other hand, income-generating real estate is attracting the interest of a growing segment of investors, because of the periodic revenues it provides, as well as the possibility of growth in its market value, which makes it suitable options for diversifying investment portfolios.
Investors’ orientation toward this type of real estate includes residential units and buildings, offices, shops, and warehouses, with returns varying according to the nature of use, location, volume of demand, and occupancy levels in each area.
The Al Asmakh Real Estate Projects Company report stated that ready and rented properties give the investor a greater ability to estimate the expected return, based on occupancy data, actual revenues and expenses, and also shorten the period necessary to start generating income, compared to properties that are not occupied or that are still under development.
The report indicated that price is not the only criterion when choosing an investment property, as the feasibility of the asset is affected by a number of factors, most notably the quality of construction, the age of the property, its technical condition, ease of access, and the level of services surrounding it, in addition to its ability to attract and retain tenants.
He added that calculating the net return is particularly important before making a purchase decision, by comparing expected revenues with management, maintenance and development costs and potential vacancy periods, noting that some less valuable properties may achieve better performance if their expenses are limited and their occupancy rates are high.
The report pointed out that professional management plays an essential role in raising the efficiency of the property, by maintaining the quality of facilities, implementing preventive maintenance, controlling expenses, and responding to the needs of tenants, thus reducing vacancy periods and supporting revenue stability.
The report expects that income-generating real estate will maintain its position among the investment options offered in the Qatari real estate market during the coming period, supported by the diversity of real estate products, the development of urban areas, and the high level of services, allowing investors multiple options that suit their goals and targeted levels of return.
In terms of the weekly performance of real estate transactions, Al Asmakh Real Estate Projects Company’s report stated that the values of real estate transactions recorded a decrease compared to the previous week, according to the latest real estate bulletin issued by the Real Estate Registration Department at the Ministry of Justice, for the week extending from (August 16 to 20), and the number of executed real estate transactions reached 89 transactions, while the value of real estate transactions amounted to about 280.5 million riyals.
The report indicated that the municipalities of Al-Rayyan and Doha accounted for the largest share in terms of the number of executed transactions, occupying first and second place, respectively. The average number of transactions executed daily was approximately 18 transactions, while the value of transactions on residential units reached approximately 56 million riyals, which were executed during the same period in the areas of The Pearl, Lusail, Ghar Tha’aleb, Al Gharrafa, Al Sakhama, Al Ebb, Al Kharaij, and Al Wukair.
Regarding the prices per square foot of lands included in the trading during the fourth week of August, the real estate index of Al Asmakh Real Estate Projects Company indicated that it witnessed a variation in price levels between different regions, depending on the location of the property and the nature of use.