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Excess supply in a market - rents fall in Doha’s property market

Geoff Riley

5th April 2010

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In Doha despite doubit digit economic growth rates, rents for properties are falling steeply because of too much new building leading to excess capacity - too much supply relative to the level of demand. Part of the problem has been a reversal of migrant labour as previous investments in the oil industry came to an end. Here is a classic example of excess supply in a market leading to a fall in market prices.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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