QATAR (Reuters) – A $6.5 million apartment built by a Qatar property developer on the outskirts of Doha sold on Wednesday for a record $3.9 million, according to the local real estate website Zillow.
It is the first time a property in the emirate sold at auction, and it was the highest price ever paid for a property.
The home is located near the main international airport.
Qatar’s sovereign wealth fund, the Al Jazeera Foundation, and property developer Hamad bin Khalifa Al Thani have agreed to pay the price, which is expected to exceed the $3 million price tag set in 2012 by a group of wealthy Qataris and others.
The Qatar Investment Authority (QIA) will invest $2.4 billion.
“This is the biggest ever property sale in Qatar,” QIA managing director Mohammed al-Bakri told reporters.
“It’s a massive project and it’s the most ambitious project in the country.”
It was the latest property sale to hit record prices, with a total of more than $1.3 billion selling for $3 billion in the past two years.
In March, a $1 billion apartment building was completed in Doha by a developer from the Gulf state of Oman, and in March, the Qatar Investment Fund (QIF) agreed to sell the land on which it was built for $2 billion.
In a statement, QIF said the sale would provide a “major boost to Qatar’s economy”.
In March last year, a similar property was sold for $1 million in Dubai.
Qatari authorities have repeatedly promised that the country’s economy will grow by more than 8 percent a year, and a government study last year showed that the economy is projected to grow 7.9 percent this year.
But the country has been unable to maintain the momentum, and is currently in the process of negotiating a new deal with the European Union, which has threatened to impose sanctions on Qatar if it does not cut subsidies to the poor and build a large infrastructure project.(Reporting by Tom Miles in Dubai; Editing by James Dalgleish)