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Courtesy
of United Development Company
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Khalil Sholy, UDC Managing
Director.
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Imagine living somewhere called Porto Arabia or
docking your 40 foot sailboat at Viva Central. Places
like this conjure up images of Portofino in Italy,
or of Monaco, on the French Riviera. Developers
of The Pearl- Qatar wanted these thoughts to be
considered when people discussed their remarkable
project.
United Development Company (UDC), The Pearl’s
developer, is Qatar’s largest private sector
shareholding company. It’s mission is to identify
and invest in long-term projects that contribute
to Qatar’s growth, while returning good shareholder
value. The company was established in 1999 and is
publicly traded on the Doha Securities Market. Ranked
as a Gulf Business Top 150 company, UDC has a diverse
range of holdings ranging from hydrocarbons to construction
and real estate investment.
The crown jewel of UDC’s portfolio is the
award-winning development called the Pearl. This
residential land reclamation project on the northern
edge of Doha has, on release, sold-out each phase
of development and there has been a modest rise
in prices for each successive phase. This level
of interest, particularly because of the free-hold
nature of this property, is an encouraging sign
for the ambitious USD $2.5 billion development.
"In Qatar, growth has been seen in all sectors
of the economy, including in real estate, education,
medicine, tourism, hydrocarbons, even the athletics
sector. The real estate market will continue to
show healthy growth for the next 5-10 years,"
said Khalil Sholy, Managing Director of UDC.
It is difficult to establish a benchmark for market
comparisons since there are few other freehold properties
available for purchase in Qatar. Mr. Sholy says,
"Investors have been taking advantage of Qatar’s
relaxation of commercial laws that allow for expatriot
ownership at The Pearl-Qatar. This is a good time
to invest here, for several reasons including 100%
ownership rights, exemption from taxes, residency
rights in Qatar, a strong economy and a stable country.
Nowhere else in the world can you find such a combination.
No where else in the world."
The Pearl development is a string of offshore islands
with two circular feature harbours which mirror
the famous Doha harbour's natural shape. There will
be 8,000 residential units in total, ranging from
20-story towers to individual villas with substantial
plot sizes. The first phase is due for delivery
in late 2006 or early 2007, and by 2010 some 35,000
people in total will be living on The Pearl-Qatar.
The Pearl will also feature the finest restaurants
and hotels in the region. "The island’s
hotels are designed to be destinations in their
own right and will enhance the Pearl-Qatar’s
cache as The Riviera Arabia- a place to experience
a Mediterranean lifestyle in the heart of the Arabian
Gulf," said Nick Bashkiroff, The Pearl’s
Development Director.
The developer, UDC will be acting as the municipality
and regulating and collecting service charges on
the apartments as well as issuing electricity and
water bills. In fact, it will all be listed on one
monthly bill avoiding any issues with additional
service charges.
In this regard, UDC has been greatly assisted by
the new laws relating to the ownership of real estate
in Qatar. These clear and modern laws meet the toughest
requirements of international investors, who are
not being asked to merely buy on trust. Buyers also
get guaranteed residency visas through UDC, so long
as they meet the standard requirements.
Properties on The Pearl-Qatar are also competitively
priced. For example, $275,000 will purchase a 120
square metre, one bedroom flat. It will cost less
than $500,000 for a spacious four-bed apartment,
not unreasonable by international standards. "At
the Pearl, if you compare our prices to the region's,
you’ll realize we’re moderate. If you
compare our prices internationlly you’ll see
that we’re rather reasonable," said Mr.
Sholy.
To put things in perspective from an investment
point of view, considering that Qatar plans to invest
USD $150 billion in its own infrastructure over
the next five years, surely this is the biggest
real estate bargain in the Gulf. Investors are buying
prime property in the heart of the capital city
of a country whose GDP per capita is projected to
soon overtake Switzerland’s and become the
world’s highest.
Mr. Sholy observed, "At The Pearl, people
have an opportunity to get into these properties
early. Sure, everybody is interested in appreciating
value and wants to have an opportunity for growth.
But, it is likely that buyers today will see short
term growth- in a six month period - in the high
double digits."
A testament to the quality of the development of
this project is the fact that UDC and The Pearl-Qatar
were recently showered with accolades by Construction
Week Magazine. The Pearl- Qatar swept the boards
at this year’s awards, picking up several separate
award categories, including the Judges’ Supreme
Award, the Major Project of the Year and the Project
of the Year. "Only the top engineers and consultants
from around the world are working on the project,"
said Mr. Sholy.
UDC and Qatar Dredging picked up the Reclamation
Project of the Year award for Qatar. The judges
felt that one project stood out from the other off-shore
developments being built around the Gulf. When The
Pearl is finished it will create over 30km of new
coast line. "The Pearl is built as an island
because of the limited beach front available. The
exclusive island concept is done on purpose, we
want to be THE place, like Monaco," said Mr.
Sholy. Qatar Dredging, a UDC company, is carrying
out the reclamation work, revetements for shore
protection and quay walls.
It is important to note that while environmental
concerns are often pushed aside in the race to keep
up with the region’s property boom, UDC has
taken steps to ensure their project creates minimal
ecological impact. For example, unlike some other
reclamation projects that will require regular dredging,
The Pearl has gone through a very comprehensive
process with the Qatari government to ensure the
bathometrics (water quality) is maintained. The
Pearl-Qatar will only require a one-time dredging
process because of the nature of the water-flow
around the site.
Qatar is a country with grand ambitions and of
all the development taking place there, The Pearl
is the one project that truly captures the hopes
and dreams of this emerging power.
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Qatar
