As the World Cup approaches, Gulf expats face increasing rents

With less than a month to go for the 2022 World Cup, Qatar is gearing up to welcome more than 1.5 million football fans from around the world – almost half the population of the country. With that in mind, tens of thousands of fans are expected to set up camp in neighboring Gulf countries and commute to matches, with airlines providing dozens of daily shuttle flights and the hospitality sector in full capacity. For residents, the impact of the upcoming global event has been brewing for months.?

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Hotels in Qatar are reported to be expecting near full capacity in bookings for the time of the event, as thousands of hotel rooms, previously blocked by organizers, were released to the public for booking in October. Accommodation options extend to cruise ships and desert camps to try and accommodate arriving fans. This consequently meant an increase in rent prices by up to 40% ($42,000/night for a villa for the final, anyone?)??

But it’s not only Qatar that is seeing rents soar, since Saudi Arabia , Oman , and the UAE announced easier tourism visas for World Cup ticket holders. This makes it possible for fans to stay in the UAE for a total of six months if they choose to extend their 90-day visa, pushing Dubai hotels to their maximum capacity towards the New Year’s season. Some landlords are reportedly switching to short-term rent plans instead of annual, as the event gets closer.?

More factors merge with the World Cup demand to contribute to the rising rent prices in Dubai for example, property consultant Nayla Noura says , starting with Expo 2020 which ended in March 2022, and an influx of newcomers to Dubai with newly introduced visa options for job seekers.?

“All of this leads me to believe that this trend is here to stay: newcomers will gravitate towards furnished and short term options, while existing residents will start to move to newly developed areas that match their price point,” she adds.

That being said, a shift towards short-term rentals does not reflect the market’s dynamics , says financial expert Jad Khalil. “I see those price hikes are tactical/short termed and not based on actual market dynamics. Landlords and real-estate related agencies are maximizing profits over the short term vs. a more strategic market vision,” he commented.?

“If prices are allowed to increase based on actual demand/supply market dynamics, then we won't be witnessing this unjustified hike in prices. It's the result of an oligopolistic market structure, where cons always outweigh pros, especially when empathy is missed at the expense of short term profits,” he adds.?

In what ways is the property market changing in the Gulf as the World Cup approaches? and how will these changes pan out after the tournament is over? Share your thoughts in the comments below.

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