Qatar to see sustained upward pressure on rents: Oxford Economics

Qatar to see sustained upward pressure on rents: Oxford Economics

Qatar, which stands out for the sharpest rise in housing inflation in the Gulf region, is slated to see sustained upward pressure on rentals in the coming months owing to FIFA World Cup, according to Oxford Economics.

"We look for sustained upward pressure on rentals in Qatar in the coming months amid an upswing in activity related to the football World Cup later this year," Oxford Economics said in its latest research report.

Rental prices will likewise firm in the rest of the GCC (Gulf Co-operation Council), spurred by higher demand from nationals and returning expatriate workers post-pandemic, it said.

The robust outlook will support hiring across the region and draw in foreign workers, leading to further recovery in housing demand and sustaining the rise in the rental component of CPI or consumer price index.

These increases will be weighed against the impact of higher interest rates on demand, even if regional central banks don't follow the US Fed hikes in full.

As external inflationary pressures moderate, it said domestic factors, stemming from the strength of the regional economic recovery and its impact on demand for housing and services; will pull inflation in the opposite direction.

The housing segment, which makes up an average of