Qatar’s property investment potential looks set to soar following stats from a development sales firm. LifestyleHomes said the country is likely to need an additional 93,000 new homes by 2010 to address rising demand.

Population increases and a burgeoning economy are thought to be behind the heightened need for new homes. LifestyleHomes said the Qatari economy was emerging as a major power in the Gulf, with its average GDP growth projected to hit 12 per cent annually by 2012.

The firm said:

“Recognising the advantages of residing within a high potential economic hub, a greater number of foreign nationals are acquiring residential property developments, which will also provide them with a Qatari residence visa as per newly implemented foreign ownership laws.”

LifeStyle is known for teaming up with Sabban Property Investments to market units in its Sabban Towers development at The Pearl project in Qatar.

Encouraged by the success of the scheme, the firm is now spreading its wings to other developments as its bids to attract foreign property investors.

Qatar lies to the north of Saudi Arabia and has a population of around 930,000. Its current economic boom is being propelled by expanding production of natural gas and oil.

Lenders have come up with a plan to kick start the UK’s mortgage market and reinvigorate the property industry. The Council of Mortgage Lenders (CML) said its idea was designed to

“help the financial system help itself”.

Its scheme involves the Bank of England offering a form of secured lending using new UK residential mortgage-backed securities as collateral or covered bonds. To qualify, the securities and covered bonds would first have to be sold to investors in a public issue.

The CML said:

“This is of crucial importance, as it would ensure that the market itself is essentially delivering the solution, with the repo facility simply acting as a catalyst to restore market confidence.”

Officials have already submitted a document explaining the plans to the Crosby review of housing finance and the Treasury.

CML director general Michael Coogan said:

“If they act quickly, there is a window of opportunity here for the Government and the Bank of England to break the logjam in the housing and mortgage markets and underpin confidence in the financial system.”