Qatar puts up ‘for sale’ sign with new property visas, offers permanent residency with $1mn purchase

Properly-heeled people are being invited to think about investing in Qatar’s glistening seaside tower blocks on Doha’s man-made Pearl island or the model new Lusail metropolis venture that flanks a World Cup stadium. AFP

Fuel-rich Qatar has flung open its property market to foreigners, with a scheme giving these buying houses or shops the suitable to name the Gulf nation house.

The scheme, introduced in September, is the most recent in a sequence of measures designed to diversify Qatar’s economic system away from fossil gas dependency and appeal to overseas capital forward of the 2022 World Cup.

Properly-heeled people are being invited to think about the glistening seaside tower blocks of Doha’s man-made Pearl island or the model new Lusail metropolis venture that flanks a World Cup stadium. Retail items in malls additionally qualify patrons for residency.

The reforms may additionally assist take in an oversupply of items, which has left gleaming towers half-empty and seen costs drop by virtually a 3rd since 2016, based on consultancy ValuStrat’s Value Index for residential property.

Beforehand, traders wanted sponsorship from a Qatari enterprise or particular person for residency, however now a $200,000 property buy secures short-term residency for the time period of possession. A $1 million buy buys the advantages of everlasting residency, together with free colleges and healthcare.

“The rationale I did not purchase earlier was that there was a lot gray space,” mentioned advertising director Tina Chadda, a Kenyan who has lived in Qatar for 15 years.

Now she is in search of “a property to dwell wherein I can use to get everlasting residency”.

“I believe this may enable me to name Qatar house. I really feel extra comfy now,” she advised AFP.

Chadda mentioned the visa would additionally enable her to convey her household, together with aged dad and mom, to Qatar from Nairobi.

“It is a secure nation, in comparison with Kenya.”

Foreigners can now home hunt in 25 areas of Qatar — principally in and across the capital Doha — 9 on a freehold foundation and the remainder with 99-year leaseholds.

Seaviews for many

Gulf nations have lengthy relied on overseas expertise and experience to transform their petrodollars into the area’s towering cities, however have seldom made it simple, or low-cost, for expats to make their strikes everlasting.

Comparable schemes exist elsewhere within the Gulf, however for a considerably higher outlay. Dubai provides a 10-year residency visa for an funding of $2.7 million, 40 p.c of which have to be in property.

So-called “golden visas” and funding passport schemes in a number of international locations have additionally confronted scrutiny over allegations they’ve attracted corrupt people and cash laundering.

In Qatar’s case, it stays unclear how engaging the tiny, ultra-conservative nation — the place strict curbs apply to free speech and alcohol gross sales — will probably be to rich world patrons.

Funding of $200,000 buys a 50 sq. metre (540 sq. foot) studio in Lusail’s new Fox Hills improvement north of Doha, whereas $1 million would cowl a 330 sq. metre three-bed seaview house within the Pearl.

“These areas have been designated as a result of they’ve new and developed infrastructure… in addition to a particular view of the ocean for many,” mentioned justice ministry official Saeed Abdullah al-Suwaidi.

“There isn’t any large demand, however we try to encourage actual property funding,” he added. “(We) purpose to diversify the economic system and never rely on oil and fuel.”

This marks a step change within the Gulf emirate, the place 90 p.c of the two.75 million persons are short-term visitor employees, principally employed on initiatives linked to the 2022 event.

‘Hype round 2022’

One property agent selling the scheme to purchasers mentioned, “the entire concept is to have expats and locals working collectively and making an attempt to advertise a long-term outlook for Qatar.”

“Because the hype round 2022 will increase, I believe this may naturally create extra demand,” mentioned Doha-based Sotheby’s property agent Oliver Essex.

In a report issued final month, auditor KPMG mentioned the residential property had not been as exhausting hit by the novel coronavirus pandemic as different actual estates in Qatar, with residential transactions value $1.48 billion reported within the second quarter of 2020.

“Nevertheless, COVID-19 measures have resulted in authorities and personal layoffs, which is not directly resulting in the exodus of a considerable workforce,” it mentioned.

The coverage shakeup comes at a time of political disaster, with Qatar underneath an financial and diplomatic boycott by its neighbours — miserable demand for Qatari property — and confronted with low oil costs, which have additionally undermined costs in different Gulf capitals.

Essex mentioned he anticipated a lot of the preliminary curiosity to come back from foreigners already residing in Qatar fairly than from traders primarily based overseas.

“I imagine primarily Lebanese, Iranians, Egyptian and Indians” will probably be initially, he mentioned.