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Land Banking for Qatar Property Investment: what is it, and how can you benefit?

What is Land Banking?

Land banking is a term used to describe the use of land development plots as an investment vehicle. 

The land may not yet contain built properties. In this case, the empty land offers considerable promise for future property value. Investors can either flip properties once developed on the land for quick profit or opt for buy-to-let to create a reliable source of passive income.

If you missed our video hosted by Saleh Alorani, a Sales Advisor at The Pearl Gates, which explores land banking for Qatar property investment and its benefits, check it out here.

 

Alternatively, scroll on for an additional look at land banking investment, which is proving popular among local and international investors who wish to benefit from Qatar's resilient and growing real estate market.

A case study by The Pearl Gates on the power of land banking

The project’s facts and figures:

  • Where: a residential community in Lusail.
  • Size of plot: 4,421 sq mt.
  • Buildings built on the plot: 10.
  • Land cost: QAR 6.6M.
  • The construction cost of buildings: QAR 9.9M.

We were involved in the land banking of this residential project in Lusail. First of all, we completed due diligence: an investigation of the local real estate market to understand factors in regards to this particular project.

Our land development specialists also carried out a feasibility study that assessed the financial expectations and viability of the project, and all findings were positive. 

At this stage, however, we faced a hurdle due to a lack of funding, which paused development. As a result, empty land was left with potential value locked in.  

To help things progress, we offered sections of the plot at a cash percentage to give buyers the opportunity to develop units on a smaller scale if they wished.

The result?

Subdivision plots of the project were sold with a holding period of 7 years, with land banking investment returns available from the moment properties were developed—a fantastic example of what is possible with an expertly oriented land banking strategy. 

The Pearl Gates indeed offer flexible land banking options based on reliable estimations, thanks to our extensive knowledge and experience in the Qatar real estate market and the development of its land.