Qatar is already reaping the benefits of its infrastructure preparations for the 2022 FIFA World Cup, thanks to increasing investment in real estate and construction, according to senior Qatar Financial Centre officials.
The government is currently focusing on delivering multi-billion projects in preparation for the World Cup, such as the $45bn real estate project in Lusail City, the $36bn Integrated Rail Project, the final phase of the $17.5bn Hamad International Airport, the $7.4bn New Doha Port, the $8.1bn highway programme, and the new World Cup stadiums. This demand for infrastructure land is one of the main factors pushing up property prices in the region.
Earlier, Qatar National Bank (QNB) reported that the country’s fast-growing economy and rapid population growth caused land prices to escalate. It said land prices had increased by 52.7% since the beginning of 2014. While this surge in prices has many positive effects, it could prove a headache in the longer term, since the knock-on effects could include increases in the costs of contracting and rent.
This could be a particular issue in the light of Qatar’s growing population, which is increasing as construction companies hire more and more workers. In August 2014, Qatar’s population had increased by more than 8% over the previous month. However, the Qatari government is aware of the phenomenon and prepared to take action to dampen inflation costs. The QNB has reported that rising rent inflation is leading to a moderate acceleration in domestic inflation but is countered by lower international food prices, which are keeping foreign inflation down.