Qatar Economic Outlook Issue Number 13

Qatar Economic Outlook 2021 - 2023 
64 
Impacts on Real Estate Market
The real estate market in Qatar has 
witnessed a decline in prices since the 
market become saturated with residential 
buildings, offices, and shops in mid-2016, as 
shown Figure (2-16). Although it declined by 
an average of 7.4% during (2016 – 2020), it 
experienced a marginal growth by about 1% 
during Q1 and Q2 of 2019, perhaps due to 
the recovery of investors' confidence in the 
real estate market prompted by the 
escalation of oil and gas prices during 2018 – 
2019.
In addition, the impact of the Covid-19 
containment measures on the economy in 
general and the real estate sector in 
particular led the real estate prices to fell 
further during Q1 and Q2 of 2020, before it 
saw a recovery since Q3 of 2020 until the end 
of the end of Q3 of 2021, due to: (1) the 
continuation of the expansionary monetary 
policy represented by lowering interest rates 
on deposits, (2) the gradual lifting of 
restrictions related to Covid-19, (3) allowing 
Non-Qataris to own and use real estate in 
defined areas of the State of Qatar as per 
Cabinet Resolution No. (28) issued in August 
2020, as indicated in (Box 2-2) 
.
 
Box 2-2: Allowing non-Qataris to own and 
usufruct right
 
Within the framework of achieving the 
development goal of economic diversification, 
a package of economic legislation was issued 
during the period (2018-2019), aiming to attract 
foreign investments in non-oil economic 
activities by improving the business 
environment and facilitating business creation. 
Among the most important of these legislations 
are: (1) Law No. 16 of 2018 regulating non-
Qatari ownership and use of real estate, which 
aims to allow the non-Qatari investor to have 
“freehold” ownership as well as the “usufruct 
right” for a period of 99 years in certain 
designated areas with certain privileges. (2) 
Law No. 1 of 2019 Regulating Non-Qatari 
Capital Investment in the economic activity, 
which aims to allow the non-Qatari investor to 
own 100% of the capital of local companies in 
all economic sectors, (3) Law No. 12 of 2020 
on the Regulation of Public Private