With soaring land prices the risk of losing the 2022 World Cup could knock the property market in Qatar
Property investors in Qatar could be “burnt twice in less than a decade” if the country was to lose the right to host the 2022 World Cup as the Fifa scandal unfolds, experts have warned.
Property prices and land values have soared around most of the 12 stadia under construction as developers pile into the luxury sector, according to a new report by the property search website, Lamudi.com.
“The Fifa World Cup has contributed to the increase in developers in Qatar, affecting the prices of areas where stadiums are being built, as well as in neighbouring areas… developers have resorted to building luxury property as opposed to affordable housing because of the higher return on investment and higher margains,” the report read.
The study from the company – which claims to be the emerging markets equivalent of Rightmove, with 900,000 properties listed for sale or rent in 32 countries – showed that Ash Shamal, home of the proposed Al-Shamal Stadium, had the highest increase in land prices with a 20pc rise from 2011 to March 2015. This was followed by Umm Salal, where land values climbed 19.5pc, and Al-Rayyan (14.6pc).
However, property prices and land values could be rocked if the nation was to lose the right to host the World Cup. Prosecutors on Thursday began interviewing Fifa executives involved in the vote that resulted in Russia and Qatar being chosen to host the next two World Cups, as criminal inquiries around world football’s governing body gathered pace.
Adam Challis, head of UK residential research at JLL, said that those property speculators who “lost money at the end of the last [property market] cycle could be burnt twice in less than a decade” should the World Cup be pulled.
However, there is a more “pressing concern”, he said. “If Qatar gets caught up in the scandal, it will affect its brand reputationally and could cast a negative shadow over investment into the country. If anything, it would increase the appetite of Qatari investors to ship their money overseas into places such as London.”
John Collier-Wright, founder of JR Capital, which manages funds in the Middle East, warned “uncertainty” over Qatar’s ability to hold on to the World Cup could cause a temporary downward correction. The Fifa investigation also clashes with Ramadan, which starts in June and coincides with the start of the quiet summer season in the Middle Eastern property market.
However, Mr Collier-Wright said instability around the World Cup is small compared with other threats to the region’s economic stability.
“When Syria is blowing up, Iraq riven by sectarian bloodshed which has destroyed the state, and Yemen in chaos, there remains only Qatar, Abu Dhabi and Dubai as regional safe havens,” he said. “The World Cup is a small part of that bigger equation.”
A history of Fifa corruption
Cash for votes exposé
October 2010
Reynald Temarii, president of the Oceania Football Confederation, is recorded telling Sunday Times reporters that two bids had offered “huge” payments for his support in the 2018 World Cup bidding process and that he had received offers of between $10-12 million (£7.5 million). Amos Adamu, a Fifa executive committee member from Nigeria, says he wants $800,000 (£500,000) to build four artificial football pitches, which contravenes Fifa’s rules. Both men tell reporters they could facilitate access to the men who’ll decide where the tournaments will be held. Adamu and Temarii are provisionally suspended from all football-related activity pending the outcome of an investigation. Sunday Times also exposed the referees committee, Ahongalu Fusimalohi and former executive committee member Ismael Bhamjee.
Blatter promises investigation
October 2010
Fifa president Sepp Blatter writes to all 24 executive committee members promising a full investigation into allegations. It emerges that the Spain-Portugal and Qatar bids could face expulsion from the contest for the 2018 and 2022 tournaments if the duo are found guilty of colluding. Spain-Portugal’s bid leader accuses England of doing a deal with the USA in breach of Fifa regulations.
Temarii and Adamu are banned
November 2010
It is reported that the Spain-Portugal and Qatar World Cup bids could escape censure over the allegations of collusion, after Fifa executive committee member Chuck Blazer confirms that no hard evidence had been passed to its ethics committee. Adamu is suspended for three years and fined 10,000 Swiss francs (£6,341) while Temarii is banned for a year and fined 5,000 Swiss francs (£3,170). Panel concludes there is insufficient proof of collusion between the Spain/Portugal and Qatar bids.
Russia and Qatar win World Cup bids
December 2010
English FA is humiliated as Russia is handed 2018 World Cup finals; Qatar gets the 2022 tournament. Roger Burden, acting chairman of the FA, stands down after relations between FA and Fifa descend into acrimony. Burden said he “wanted nothing more to do with them [Fifa]”. Swiss government prepares to investigate risk of corruption in sports bodies based in the country following Fifa’s controversial award of the two World Cup finals.
Telegraph reveals Qatar corruption
January 2011
Documents seen by Telegraph Sport reveal that Qatar offered to relocate the headquarters of the Asian Football Confederation to Doha.
Evidence emerges of Qatar and Spain-Portugal collusion
February 2011
Blatter confirms that the Qatar and Spain-Portugal World Cup bids colluded to trade votes in the contest for the 2018 and 2022 finals.
FA and Fifa at loggerheads
May 2011
Geoff Thompson endorses Sepp Blatter’s campaign to retain the Fifa presidency despite having been chairman of England’s failed World Cup bid. Telegraph Sport discloses that England football officials hired a “corporate investigations” company to investigate their rivals during the failed bid to host the 2018 World Cup. Six of Fifa’s executive committee are accused in Parliament of “improper and unethical behaviour” during World Cup bidding. Fifa demand the FA provide evidence to support allegations of corruption and “unethical” behaviour against six executive committee members. Blatter vows to complete the inquiry before presidential election. The FA reveal they will hold independent inquiry into Lord Triesman’s allegations of corruption against four Fifa executive committee members. The FA board agrees to abstain in the forthcoming Fifa presidential election because of doubts over the probity of both Blatter and his challenger Mohamed Bin Hammam. Qatar’s 2022 World Cup bid committee accuses Parliamentary committee of “insulting” behaviour as it launches attempted fight-back against allegations of corruption leveled against it. The FA call for the June 1 Fifa election to be postponed and for an independent review of the world governing body’s structures.
Blatter runs for re-election
March 2011
Reports say the FA will support any challenger to Sepp Blatter in forthcoming Fifa presidential election. Fifa presidential challenger Mohamed Bin Hammam considers striking deal with Michel Platini that would see him step aside in favour of the Uefa president after just one four-year term if he is successful in his campaign to unseat Sepp Blatter. Blatter promises to hand out $1 billion (£610,000) in “development” funds to the 208 members associations that will decide his fate as president in the forthcoming Fifa election.
Bin Hammam and Warner are suspended
May 2011
Fifa presidential candidate Mohamed Bin Hammam says Amadou Diallo, a Guinean national accused in Parliament of facilitating bribes on behalf of Qatar’s World Cup bid, is a close friend of his but not involved in any wrongdoing. Amadou Diallo, the man accused of facilitating bribes on behalf of Qatar’s successful 2022 World Cup bid worked for Fifa for at least six years as an advisor to Mohamed Bin Hammam, the governing body confirms. It then emerges that Bin Hammam and Jack Warner, a Fifa vice-president, are to face disciplinary action for allegedly offering bribes to members of the Caribbean Football Union in exchange for votes in forthcoming election. Fifa’s ethics committee suspend the pair from all football-related activity pending the outcome of a full inquiry into bribery accusations. Fifa general secretary Jerome Valcke confirms that an email in which he made the sensational allegation that Qatar “bought” the 2022 World Cup is genuine after Warner, the recipient, reveals it to the press.
Qatar dismiss bribery claims
July 2011
The whistleblower in FIFA 2022 corruption claims, Phaedra Almajid retracts her claims. Hassan Al-Thawadi, the secretary-general of the Qatar 2022 Supreme Committee, dismisses bribery claims. He then outlines the nation’s plans to construct air-conditioned stadiums.
Telegraph reveals FBI investigation
December 2011
The Daily Telegraph reports that the FBI are investigating alleged hacking into email accounts for England and America’s World Cup bids.
Fifa launches investigation into corruption practices
July 2012
Fifa employ American attorney Michael J. Garcia to investigate allegations of corruption in world football. A month later, Garcia declares his intention to investigate the bidding process and decision to award the 2018 and 2022 World Cups to Russia and Qatar
Blatter insists Qatar World Cup will be held in the summer
March 2013
Blatter claims that Qatar will host the World Cup in the June-July summer slot as planned, amid growing speculation it will be moved to the winter.
Fifa begins to turn on itself
July 2013
FIFA executive committee member Theo Zwanziger labels the decision to award Qatar the hosting rights of the 2022 Cup as a “blatant mistake.”
Blatter’s admission
August 2013
Blatter confirms that that the FIFA executive committee will meet to decide on when the 2022 World Cup should be held, due to Qatar’s hot climate. He admits that playing the World Cup in the summer there is “not rational and reasonable”. Blatter goes onto say that Fifa made “a mistake” when appointing Qatar as the host nation for the 2022 World Cup.
Fresh bribery allegations emerge
June 2014
Millions of new documents are made public by the Sunday Times, showing how bribes changed hands in order to secure Qatar the 2022 World Cup. Fifa claims it is taking the claims seriously.
Garcia report is blocked
September 2014
Garcia delivers his 350-page report, but Hans-Joachim Eckert, the head of the adjudicatory arm of FIFA’s ethics committee, declares that it will not be made public for legal reasons. Instead, Eckert reveals that he will produce a summary of the report ready for public consumption by November 2014.
Eckert releases his summary and Garcia resigns
November 2014
Eckert makes public the 42-page summary of his findings after reviewing the Garcia’s report. The summary clears both Russia and Qatar of any wrongdoing during the bidding for the 2018 and 2022 World Cups. Critics denounce Eckert’s summary as ‘a whitewash’, while Garcia denounces it as “materially incomplete” with “erroneous representations of the facts and conclusions”. FIFA’s Appeal Committee then dismiss Garcia’s appeal against the Eckert summary. Garcia resigns a day later, before FIFA’s executive committee agree to publish a “legally appropriate version” of the Garcia report.
Sponsors withdraw from Fifa
January 2015
Following Sony and Emirates ending their sponsorship contracts with Fifa, Castrol, Continental and Johnson & Johnson withdraw as pressure mounts on Blatter to quit.
Blatter faces new challenger
January 2015
Prince Ali Bin Al Hussein of Jordan announces he will run against Blatter in May Fifa presidential elections. Later in the month Greg Dyke announces that his bid has the FA’s support.
Telegraph reveals Warner was paid millions by Qatari firm
March 2015
Documents show that the former Fifa vice-president and his family were paid millions by a company controlled by a former Qatari football official shortly after the country won its bid for the 2022 World Cup. Warner appears to have been personally paid $1.2?million (£720,000), while payments totalling almost $750,000 (£450,000) were made to Mr Warner’s sons. A further $400,000 (£240,000) was paid to one of his employees.
It’s a Winter World Cup
March 2015
Fifa confirm the Qatar World Cup will be held in November and December 2022. Premier League clubs demand compensation for the disruption.
Figo quits Fifa presidential race
May 2015
Former footballer Luis Figo withdraws from the race, due to Blatter’s “dictatorship”. He also claims to have seen incidents that “should shame anyone who desires soccer to be free, clean and democratic”.
Fifa officials arrested in US corruption investigation
May 2015
Dawn raids see six Fifa executives arrested in Zurich, with 14 detained overall. The charges against those arrested include fraud, racketeering and money laundering and relate to World Cup bids as well as marketing and broadcast deals. Amongst those arrested are vice president of the executive committee Jeffrey Webb of the Cayman Islands, Uruguay’s Eugenio Figueredo, who is also an executive committee vice president and until recently was the president of South America’s football association and the notorious Warner of Trinidad and Tobago, a former member of the executive committee who has been accused of numerous ethical violations.