Since 2004, foreigners have been able to buy property in designated areas of Qatar: in The Pearl and the West Bay in Doha, and in the small northern Qatar city of Al Khor. These designated areas, which are all coastal, have been selling like mad for the last half-decade. But what is all the fuss about?
There are several benefits to purchasing property in Qatar: first, there is no property tax; second, the properties are located at breathtaking seaside locations; third, for those wanting to live in or retire to Doha, purchasing property expedites the visa process; and, fourth, the most interesting point, there is the possibility of flipping properties for gargantuan sums in the near future. Doha aspires to be the next Dubai; whether or not it reaches that height, entering the housing race certainly looks exciting.
Of the three designated areas where property can be bought, the most popular is the man-made Pearl Peninsula in Doha, the capital of Qatar. Modeled after a generic Mediterranean coastal town, The Pearl aspires to be the new tourist attraction of Doha. As of this time (autumn 2011), prices are still reasonable at The Pearl: one-bedroom apartments sell for US$200,000 and houses sell for US$1.5 million.
Unfortunately, the process of buying is difficult. First, you must contact a local real estate agent, which can be frustrating, since they tend not to respond to emails. Second, you must choose your property wisely, since the freehold titles allow development all around your seaside paradise or absolutely no development whatsoever (i.e., you could be the only house surrounded by undeveloped desert with no utilities, roads, etc.). Third, some people complain of the insanely high interest rates on mortgages (up to 15%). Others complain about not being able to pay off their mortgages because they purchased on spec, and construction is incomplete, so their property lacks buildings to rent out to cover their costs.
Despite the shortcomings, buying the right property in Doha can be a good idea. The government of Qatar is stable, Doha is fairly liberal, and Qatar has just surpassed Luxembourg as the wealthiest country on Earth. With a little money, time and luck, you to can now have your own piece of the Middle East.
