Qatar Real estate, Pros and Cons

[Mike Jordan]

Hello

I am a real estate investor, i have extensive experience in the aforementioned market, and I would start with the prons

1) tax free

2) high yield in some Area

Cons

1) lack of data and reports related to real estate, in the USA, there are many reports. In Qatar, there are some report but it is not like the USA and the western world

2) foreigners cannot buy in certain areas

I am choosing to invest here, because I have the data and experience, for me, it is too hard to invest outside because i have to learn everything from zero. Who is willing to invest in Qatar, he/she shall study the market carefully, If i want to purchase any real estate outside Qatar, I will study the market for at least 3 months.

Please don't hesitate to ask me any related question of this subject

[Mike Jordan]

Please find my answers below

Can foreigners buy property? 

Yes

If you can are they friendly to non-citizens buying property or do you have to do risky work around? 

no, it is 100% legal (and friendly) for non-local to purchase in many areas, and foreigners might obtain a visa permit to live

, in other areas it is illegal, but some non-local do it anyway, they use some laws which is risky and the law is grey in these areas.

Are both the rent profits and capital gains tax free?

yes, if you are an individual it is free, there is rent profit taxes, but if you own a company, the rent profit might be taxed ( i am not sure about this), but i am  sure 100% there is no capital gain tax for everyone

What are rents vs purchase price? Can you hit the 1% rule?

Yes you could, but it is hard to get this yield in houses or flats. However, in commercial or logistic real estate, the net roi could be between 8% 15%, but this not very common in housing and flats investment

Is there appreciation?

yes, there is appreciation, but in the last 5 years there is a correction period for many reasons, mainly because oversupply in some areas, check the below official website for the real estate index, you could check in the long run there is appreciation. 

http://www.qcb.gov.qa/English/...

Is there reliable property management?

yes and they are very professional, there are international/western companies for this, and also there are very good  local companies

Who is your target renter? 

depends on the real estate setcor, there many types of renters, blue collar, white collar, commercial, storage, admin. etc. Blue collar worker are important player in the real estate industry

Do things change if US reduces forces there or changes off base housing policies?

 Americans in Qatar are not the major players in the local real estate industry, their population is less1% of the total population,  the major players are the governmental project and private sector projects. 

How is the country doing on adding job base?

There are always trends to achieve this, the real GDP will be increased within 5 years, as I read in many international websites

Is the currency stable?

The Qatari Ryal is  very stable because it depends solely on the USD from 40 or 50 years