Building and construction activities in Qatar gained momentum in the first month of 2019, reaffirming the resilience of the Qatari economy in general and the real estate sector in particular, despite regional and global challenges.
Some 790 new building permits were issued in January 2019, registering a sharp jump of nearly 17 percent compared to 677 permits issued in December 2018, official data show.
Data related to building permits and building completion are of particular importance as they are considered indicators for the performance of the construction sector which in turn occupies a significant position in the national economy.
The real estate market, despite the ongoing unjust blockade and other challenges, remained stable in 2018. In fact the market witnessed some recovery over the last financial year. According to Qatar Central Bank’s (QCB) Real Estate Price Index, which had declined to 245.21 points in January 2018, increased to 248.22 points in November, before ending the year at 246.54 points in December 2018.
Analysts say that the construction is one of the key sectors of any economy as it drives demand for construction materials such as steel, cement and other goods, especially items related to the mechanical, electric and plumping sector.
The surge in the building and construction activities in January is being seen as a very positive development as these activities in November and December last year remained almost flat. There was negligible increase in the number of new building permits in December 2018 against the previous month (November) when 679 permits were issued.
According to the geographical distribution of the data on building permits issued by the Planning and Statistics Authority during the month of January 2019, Al Rayyan municipality ranked number one with 219 building permits, accounting for 28 percent of the total issued permits in January, while Al Wakrah municipality came in second place with 182 permits (23 percent), followed by Doha municipality with 154 permits (19 percent), then Al Da’ayen municipality with 93 permits, (12 percent). The rest of the municipalities were as follows: Umm Slal 47 permits (6 percent), Al Khor 42 permits (5 percent), Al Sheehaniya 34 permits (4 percent), and finally Al Shamal 19 permits (2 percent).
When analysed in terms of type of permits issued, data suggested that residential and non-residential building permits constituted 53 percent (419 permits) of the total building permits issued during the month of January 2019, while the percentage of additions permits constituted 45 percent (353 permits), and finally fencing permits with 2 percent (18 permits).
Within the residential buildings category, villas’ top the list, accounting for 65 percent (209 permits) of all new residential buildings permits, followed by dwellings of housing loans permits by 22 percent (71 permits) and apartments buildings by 10 percent (31 permits).
On the other hand, commercial buildings were found to be in the forefront of non-residential buildings permits with 52 percent (49 permits), followed by governmental buildings with 27 percent (26 permits), then industrial buildings e.g. workshops and factories with 13 percent (12 permits).
The increase in the issuance of new building permits was clearly noted in most municipalities with Al Khor (75 percent), Al Da’ayen (35 percent), Doha (29 percent), Doha (2 percent), Al Wakrah (17 percent), Rayyan (10 percent). There was decrease of varying degrees noticed in the municipality of Al Umm Slal (2 percent), Al Sheehaniya (6 percent), Al Shamal (24 percent).
In terms of type of certificates issued, residential and non-residential constitutes 75 percent (265 certificates) of the total building certificates issued during the month of January 2019, while the percentage of additions certificates constituted 25 percent (87 certificates). Villas top the list, accounting for 63 percent (144 certificates) of all new residential buildings completion certificates.
Source from: The Peninsula