Dubai Property Gets the ARMANI Treatment

Some critics claim that the Gulf's property boom is nothing more than a mad, headlong race of one state trying to outdo another in extravagance. In the case of Doha, the capital of Qatar - until recently viewed as dull and dusty - that may well be true. Doha is now attempting to turn itself into the business and tourist heart of the Middle East, with enough glamour and glitz to rival neighbouring Dubai.

Flush with money generated by the North Field, said to be the world's largest single natural gas deposit, Qatar has poured billions of dollars into real estate ventures in recent years. The most ambitious scheme is the $6 billion (£3.3 billion) Pearl-Qatar, an artificial, 1,000-acre, oyster-shaped island in Doha scheduled to be completed in 2011, although some residents will move in within weeks. The developer, United Development Company (UDC), promises that there will be "beautiful villas, multi-ethnic high-end restaurants, sun-kissed beaches, and fascinating shopping outlets".

UDC also promises that it will be "the ultimate destination for luxury goods". Hermès, Giorgio Armani, Jean Paul Gaultier, Balenciaga and Yves Saint Laurent are among the European brands already committed to setting up boutiques here. There are two harbours and a marina for 1,000 yachts. The Four Seasons will be one of three five-star hotels on the island, and Gordon Ramsay is said to be considering opening a restaurant.

The Pearl-Qatar is the first development in Qatar to offer freehold and residential rights to overseas investors, who hitherto have had to rent. The island has also been designed to reflect other cultures, in keeping with Qatar's efforts to open up to the West. "The Pearl-Qatar is meant to look like the South of France, Spain and Italy, mixed in with the Qatari culture," says Walid Maalouf, the Pearl-Qatar's general manager of hospitality and leisure.
Background

In a country with one of the highest per capita incomes in the world, demand for luxury properties outstrips supply; a beachfront villa on the island sells for as much as £6 million. "The demand is so high that what's available still isn't enough," says Rabih al-Khoury, the Pearl-Qatar's manager of sales. He cites a Venetian-style precinct called the Qanat Quartier as a prime example. It is a neighbourhood of pretty canals and boutique shopping designed as a carbon copy of Venice. When the precinct was released for sale in January, three quarters of the properties were snapped up off-plan in a single night.

Moreover, the majority of those who have purchased on the Pearl-Qatar are influential Qatari investors, who carry the kind of clout (and cash) to ensure that the development will succeed. British buyers rank a close second. Most plan to use their Pearl-Qatar property as a holiday home or investment, according to the development's sales managers. Patrick Bradley, who moved to Doha from London a year ago to take a job in telecoms, bought three properties off-plan hoping to turn a quick profit. His investments have so far doubled in value. He says: "Doha's learning from the mistakes of Dubai - we are what Dubai was 50 years ago. In the next five years I think there's a good amount to be made in premium property." He adds: "If you want to feel like you're in Las Vegas, you go to Dubai. If you want a five-star, peaceful lifestyle, Doha's the place to live."

Such a massive expansion inevitably involves growing pains. The island will be linked to Doha by an eight-lane highway, but some analysts say that weekend traffic to the Pearl-Qatar could overwhelm Doha's already congested roads. And Khalil Sholy, managing director of UDC, acknowledges that inflation has sent development costs soaring, which will no doubt be passed on to prospective buyers.

Source: TimesOnline