Qatar is developing at a rapid pace to move from an oil-centric economy to a business-based economy. The government is pumping money into the country for economic development, residential projects, commercial projects, and tourism. Hence, Qatar has now come under the spotlight among investors all over the world! With a recent change in property laws, foreigners can now buy property in Qatar in certain areas, which include luxurious locations such as West Bay Lagoon, Al Khor and The Pearl Island. Foreigners can even take villas and apartments on rent on a long-term basis or a freehold basis. If you’re thinking about buying a property in Qatar or you’re looking for apartments for rent in Qatar, then you’re making a very sensible investment! However, you first need to ask yourself, should you buy or rent property in Qatar? Here’s what the experts have to say.
A property hotspot indeed
Qatar has now become a property hot spot among investors all over the world! With increased interest from foreign investors, it is expected that the price of property in Qatar will rise significantly over the coming years. So, if you’re thinking about buying property in Qatar, consider buying this property as a long term investment so that you can make high profits! However, if you’re thinking about buying property in Qatar for personal use for a short period, then you might want to look at rental properties instead.
Investing comes with a residency permit
The government has come up with a scheme that allows a foreign investor to get residency in Qatar when you buy property in Qatar. Any property is over $200,000 ensures temporary residence while any property investment over $1 million ensures permanent residency, free healthcare as well as free schooling. In the long run, this investment works out great for investors who are wanting to reside in Qatar. Of course, you need to keep in mind that the residency is terminated once you sell the property. Based on your need and use for the property, you need to decide whether you wish to rent or buy property in Qatar.
The hype around 2022
Qatar is hosting the FIFA World Cup in 2022, which means thousands and thousands of soccer fans will travel from all over the world to come to watch their favourite teams play. While some fans might choose to live in hotels, most will prefer to rent out apartments and find short-term rental villas. If you’re thinking about investing in buy to let properties in Qatar, now is a great time to do so, mainly so that you can yield profitable rental returns. Real estate agents in Qatar predict that the demand for rental properties will rise significantly in 2022, which is excellent news for potential buyers looking to invest in buy to let properties!
No property tax
One of the most significant benefits of buying a property in Qatar is that there is no property tax. In the long run, this is beneficial for buyers who are looking to invest in Qatar’s real estate market as well as for people who are thinking about shifting their life and livelihood to Qatar. However, additional costs include parking charges, maintenance costs, and other miscellaneous fees that need to be paid. So, unless you’re investing in buy to let property or you’re investing in property for personal use, it might be better to find a rental property to avoid paying hefty charges. Also, when you consider renting as opposed to buying, you don’t have to go through the hassle of applying for a pre-approval, saving for a down payment, paying the monthly mortgage and so on.
You need to understand your requirements as well as your budget. Weigh the pros and cons of buying vs renting and how each prospect benefits you. Also, you need to assess the price to rent ratio. Attempt to calculate the cost of buying, coupled with the miscellaneous charges and try to determine the profit you might earn on your purchase based on the predicted rise in real estate prices in the future. Then, compare the former to the amount of money you will spend every month renting a Qatar property. Once you do this, you will get a fair idea about whether buying or renting is a more suitable option for you. You need to have a fair idea about the rental market and the capital values and a basic understanding of the market trends to make the right decision.