Qatar realty prices seen to continue ‘strong growth’
November 05 2015 10:53 PM
RELATED STORIES

QNB expects bank lending in Qatar to grow by 10.5% in 2015, increasingly driven by project financing and the expanding population. PICTURE: Nasar TK

Qatar’s real estate prices are expected to continue “strong growth” although at a more moderate pace on rapid population growth and higher per capita GDP, QNB has said in a report.
The Qatar Central Bank real estate index rose by 18.2% year-on-year in September 2015 slowing down from 20.2% in August, QNB said in its Qatar “Monthly Monitor.” The real estate price index reached its highest point in September 2015 since its introduction four years ago, it said.
QNB expects Qatar’s ongoing investment programme to continue to attract expatriates, resulting in overall population growth of 9% this year.
Qatar’s population grew by 8.8% year-on-year in October to reach 2.41mn, driven by the large ramp up in infrastructure spending.
The male population rose by 9.5% year-on-year, reaching 1.81mn in October, while female population rose by 6.8% year-on-year over the same period, reaching 0.60mn, it said.
The report said year-on-year growth in Qatar’s bank deposits fell marginally to 7.1% in September from7.2% in August.
Public sector deposits contracted by 13.9% and private sector deposits grew by 12.0%, while non-resident deposits doubled, growing by 120.2%.
“We expect deposit growth to reach 9.5% in 2015 reflecting strong population growth,” QNB said.
Asset growth fell to 8.7% in September from 11.8% in August, QNB said.
Foreign assets grew by 5.5% year-on-year, driven by expansion in credit (24.5%); while domestic assets grew by 11%, also driven by the growth in domestic credit (10.7%).
“We expect growth in bank assets to reach 10.5% in 2015, increasingly driven by project lending and population growth,” QNB said.
Growth in bank loans slowed to 12% year-on-year in September from 17.3% in August, the monthly monitor showed.
Loans to the public sector contracted by 6.6% year-on-year, while lending to the private and foreign sectors grew strongly by 23.1% and 24.5% respectively
“We forecast that bank lending will grow by 10.5% in 2015, increasingly driven by project lending and the expanding population,” QNB said.
According to QNB, the overnight interbank rates rose to 0.9% in September 2015 from 0.8% in August.
The 1-week interbank rate rose by 18 basis points to 1.02% in September, the 1-month and the 1-year interbank rate increased by 19 basis points and 1 basis point to 1.0% and 0.9% respectively, it said.

Last updated:


There are no comments.

LEAVE A COMMENT Your email address will not be published. Required fields are marked*
MORE NEWS

HAPPENING IN DOHAMore