House prices in Qatar are expected to fall a further -10-15% in the next 12 months, having already dropped -30% since the start of the economic crisis, according to analysts at The First Investor bank.

Prices are expected however to bounce back in 2011 as the Qatari Government exerts its control of new building projects. In addition, commercial property prices in Qatar were down -20-30% in 2009, according to DTZ, but should begin to stabilise between Q2 and Q3 of 2010.

UAE contractors are already heading to Qatar to take advantage of the lucrative construction market, for all types of property, which has risen by +7% to around $5.6bn in 2010, the investment bank said. Of the 500 development projects which were put on hold or cancelled all across the UAE during the downturn, only seven of them were in Qatar, research firm Proleads indicated.

Qatars economy is expected to increase by +16.1% in 2010, mainly due to massive expansion at its natural gas facilities, this compares to a +2.5% projection across the UAE. A recent Reuters’ poll believes this should spur an increase in demand across the Gulf state, in sharp contrast to Dubai where a shaky jobs market has forced expats to flee, as well as preventing an immediate turnaround in property prices. Dubai property prices are now expected to increase in 2012, according to Reuters.