{"id":7924,"date":"2016-03-14T19:19:04","date_gmt":"2016-03-14T12:19:04","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=7924"},"modified":"2016-03-14T16:34:18","modified_gmt":"2016-03-14T09:34:18","slug":"qatar-could-face-further-world-cup-2022-infrastructure-cut-backs","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/qatar-could-face-further-world-cup-2022-infrastructure-cut-backs\/","title":{"rendered":"Qatar could face further World Cup 2022 infrastructure cut backs"},"content":{"rendered":"


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\nQatar’s property market could be heading for a correction if low oil prices continue to slow the country’s economy, a new report warns.A fall in government revenues resulting from last year’s oil price slump is likely to lead to cut backs in the country’s World Cup 2022 infrastructure as well as pushing down rents and leaving offices standing empty in Doha over the next few years according to property broker CBRE.
\nAn extended period of low oil prices is likely to reduce demand across all property sectors this year as the Qatari budget slips into deficit for the first time in 15 years in 2016, CBRE said.Although Qatar’s small population and greater dependence on long-term gas contracts leaves it less exposed to oil price slides than some of its neighbours, hydrocarbon revenues account for close to 40 per cent of the national accounts. This has prompted the government to cut its 2016 budget to around 8 per cent less than during the previous fiscal year and implement a series of cuts.
\nBack in 2014, Bloomberg reported that the Qatari government had reduced the number of stadia it had planned to build for the World Cup from 12 to eight as costs spiralled.”Given the prolonged nature of the current oil price slump, we can expect to see a sustained period of restructuring within the country, with a spotlight likely to be firmly placed upon the 2022 World Cup and its related developments,” said Matthew Green, head of research in CBRE’s Dubai office.
\n“Whilst streamlining of the event facilities has already taken place, it appears that this process will be continued as additional cost saving measures are sought amidst widespread spending cuts.”Spurred on by a prosperous economy, rising office rents and the prospect of hosting the World Cup in 2022, developers in Qatar had been building feverishly for the past few years.CBRE estimates that for office space alone, around 1.7 million square metres is due to come onto the market over the next 24 months – around 32 per cent of the current 5.3 million square metres total office stock.
\n“Softening of office rentals and rising vacancy rates are seen to be an inevitable outcome of the combined effects of robust supply growth and weaker demand levels,” Mr Green added.”The multiplier effect of potential job losses or a reduction in investment plans would likely be sizeable given the large share of oil related revenues within the country’s national accounts, and as the major fund sources for auxiliary companies. Hence, a contraction in real estate demand across all property sectors is likely, albeit at varying degree of severity,” he said.
\nNonetheless, despite the economic gloom, housing rents in Doha continued to increase, rising 7 per cent last year although this compared with a 14 per cent annual increase recorded in 2014.Earlier this year JLL warned that governments across the region were likely to rein back spending.”While we remain positive on the long term outlook for real estate markets across the region, there is little doubt that the rebalancing of the fiscal position will result in headwinds and challenges over the next 12 months,” said Craig Plumb, head of research at JLL’s Dubai office.
\n“While governments continue to spend on development and infrastructure projects, the level of this spending will inevitably be curtailed over the medium term as spending needs are realigned with the reality of lower oil revenues.”lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Qatar could face further World Cup 2022 infrastructure cut backs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Qatar’s property market could be heading for a correction if low oil prices continue...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-7924","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-23O","jetpack-related-posts":[{"id":7932,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/qatar-could-face-further-world-cup-2022-infrastructure-cutbacks\/","url_meta":{"origin":7924,"position":0},"title":"Qatar could face further World Cup 2022 infrastructure cutbacks","date":"March 14, 2016","format":false,"excerpt":"\r \r Qatar's property market could be heading for a correction if low oil prices continue to slow the country's economy, a new report warns.A fall in government revenues resulting from last year's oil price slump is likely to lead to cut backs in the country's World Cup 2022 infrastructure\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15608,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indias-lt-wins-135m-stadium-contract-for-qatars-fifa-world-cup-2022\/","url_meta":{"origin":7924,"position":1},"title":"India's L&T wins $135m stadium contract for Qatar's Fifa World Cup 2022","date":"June 6, 2016","format":false,"excerpt":"\r Larsen & Toubro (L&T) has secured a contract to build a US$135 million stadium for Qatar's 2022 Fifa World Cup, an official said on Monday, a boost for the Indian firm facing a slowdown in its key Middle East market due to low oil prices.\"As part of a joint\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10884,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-construction-spending-in-qatar-plunges\/","url_meta":{"origin":7924,"position":2},"title":"New construction spending in Qatar plunges","date":"April 18, 2016","format":false,"excerpt":"\r \r The value of new construction contracts awarded in Qatar during the first three months of this year fell to their lowest levels in more than five years as governments in the region cut back on infrastructure spending because of lower oil prices. According to figures from Meed, contracts\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14848,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-may-act-to-address-property-supply-glut-official-says\/","url_meta":{"origin":7924,"position":3},"title":"Abu Dhabi may act to address property supply glut, official says","date":"May 30, 2016","format":false,"excerpt":"\r Abu Dhabi's property market is over-supplied and the government may take steps to address the imbalance, a senior official said on Sunday.Prices in the UAE capital's residential sector were flat last year, after rising about 25 per cent a year in 2013 and 2014, as affordability levels became stretched\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46903,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/slower-market-leads-to-cheaper-building-costs-in-dubai-but-world-cup-pushes-up-doha-prices\/","url_meta":{"origin":7924,"position":4},"title":"Slower market leads to cheaper building costs in Dubai, but World Cup pushes up Doha prices","date":"March 7, 2017","format":false,"excerpt":"\r Dubai and Jeddah have become comparatively cheaper to build in over the past 12 months, but Fifa World Cup-related activity is continuing to inflate costs in Doha, according to a new study.The International Construction Costs 2017 report by Netherlands-based consultancy Arcadis stated yesterday that Doha has now become the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":104123,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/qatars-property-market-faces-reality-check-ahead-of-world-cup-amid-oversupply-spat-with-gulf-neighbours\/","url_meta":{"origin":7924,"position":5},"title":"Qatar\u2019s property market faces reality check ahead of World Cup amid oversupply, spat with Gulf neighbours","date":"February 18, 2019","format":false,"excerpt":"\r Qatar\u2019s Doha Tower, a spiked cylinder that glows orange at night, won an award when finished in 2012 amid a Gulf-wide property boom, but today about half of its 46 floors are empty.The office tower, now a familiar part of the capital\u2019s high-rise skyline, has run foul of what\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/7924"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=7924"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/7924\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=7924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=7924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=7924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}