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Balanced growth of the real estate sector during 2023

Specialized real estate statistics revealed that the real estate sector in the country achieved balanced growth during the year 2023. According to statistics, the residential sector stabilized on a quarterly basis during the fourth quarter of 2023 according to the price index of the global research and evaluation consulting company ValuStrat (VPI).

According to the index, areas such as West Bay Lagoon and Muaither witnessed a 1 percent increase in prices compared to the previous quarter. Housing inventory exceeded 343,500 units in the fourth quarter of 2023 with 795 homes added in the fourth quarter.

The company's experts indicated that approximately 11,000 units were delivered last year out of 12,500 residential units expected in 2023. Notable projects during the fourth quarter of 2023 include the Al Serdal (120 apartments) and Al Kharaij (150 units) residential buildings in Lusail.

On the other hand, Just Properties launched the first residential building on Lusail Boulevard called The Lane Residence, which includes 79 apartments distributed over 11 floors. Meanwhile, JMJ Waterfront Residence, a luxury waterfront tower, was launched during the previous quarter by JMJ Holdings Group.

The project includes 172 one- and two-bedroom apartments and chalets in Lusail City. However, there are said to be more than 2,200 units under construction in the first quarter of 2024, with 40% of them concentrated on The Pearl Island and 30% in Lusail City.

Furthermore, apartment prices in The Pearl, Lusail Island and West Bay Lagoon remained strong at QAR 10,400, QAR 10,160, and QAR 9,620 per square meter, respectively, compared to the previous quarter.

The report confirmed that the volume of transactions increased by 14 percent on a quarterly basis and 33 percent annually. The average ticket size for residential units also stabilized on a quarterly basis at 2.7 million Qatari riyals, but decreased by 5.3% on an annual basis. However, areas such as Al Rayyan and Umm Salal witnessed the highest volume of residential home transactions during the fourth quarter of 2023.

Last year, the sector also saw 114 residential building deals reflecting a 31 percent decline in volume year-on-year, resulting in value declining by 19 percent year-on-year to QAR 1.4 billion.

However, The Pearl-Qatar and Al Qassar regions witnessed an increase of 82% and 44% in the value and volume of transactions in 2023 compared to the same period last year.

The ValuStrat report for the fourth quarter of 2023 stated that the average monthly rental value for a residential unit in Qatar remained stable on a quarterly basis but decreased by 7.4 percent compared to the same period last year.

The report said: “Apartments in Qatar are rented at an average rate of 6,250 Qatari riyals per month, which indicates stability on a quarterly basis but declines by 7.5 percent annually.”

The average monthly rental price for a one-bedroom apartment was 5,750 Qatari riyals, a two-bedroom was 6,750 Qatari riyals, and a three-bedroom was 8,250 Qatari riyals.

Last year, the Ministry of Municipality also launched the first phase of the Qatar Real Estate Platform, which includes 80 indicators aimed at achieving transparency in the sector.

For a detailed perspective on the property market, visit:  Dubai - Real Estate Review Q4 2023