Jeddah– Qatar’s deteriorating economic situation and the decline of the banks’ performance have had a negative impact on the real estate sector, as the sales and mortgage size has decreased by 30 percent, according to specialized experts.
This decrease is likely to reach 65 percent by the end of the fourth quarter of 2017.
Energy prices will also greatly influence the budget of the state, which will rely on cutting projects and expenses and will further incur losses on the real estate sector.
Real estate sectors said that the size and value of real estate deals have considerably declined since each of Saudi Arabia, UAE, Bahrain and Egypt decided to cut ties with Qatar.
Experts estimate that sales of houses and apartments have dropped by 75 percent since the beginning of the crisis.
Huge construction projects will also be affected by this decrease, according to the experts. The average price per meter in main areas would drop to below 40 QAR (around 10 USD), compared to 160 to 200 QAR before the crisis, based on Qatari economic reports.
Qatar would also face an “economic catastrophe” should the FIFA decide to move the 2022 World Cup to a different country.
Economic Expert Louay Tayar told Asharq Al-Awsat that the Arab peninsula was facing an unstable security and economic situation, which is directly affecting the banks’ performance.
He added that the volume of trades in the Qatari market has dropped by 40 percent, and is expected to fall by 65 or 70 percent in the coming days.