Huge Fall in Rents Predicted

Huge falls in rent of up to 25% are predicted in Doha as over 9000 apartments come online over the next year.

If the predicted falls materialise they will bring much needed relief to expatriates who have struggling to cope with years of rising rents.

According to the article in the Peninusula, prices are expected to fall between 20 and 25% during the next 12 months.

Conflicting Predictions

A Global Investment House report predicts a much milder fall of 10%.

The report also focussed on a decrease in the cost of land - pointing out that the cost of land in some suburbs fell by 30% in one month alone last year.

Rents Already Falling

After rising 154% between 2005 and 2007, rents already appear to have fallen from their 2008 peak.

A glance through the newspapers quickly shows that landlords are now asking for more reasonable rents , and the Peninsula puts current rents at 2006 levels.

Plummeting Profits

Property's contribution to GDP is also expected to fall from its 2008 level of 10.7% to 9.7% in 2009.

This trend is likely to be exacerberated by the large number of properties nearing completion.

And with firms also slowing down the recruitment process as business confidence declines as a result of the credit crunch, now is probably a bad time to be in the property letting business!

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