Doha, Qatar: According to a recent report by ValuStrat, the residential stock during the second quarter of the year was estimated at 341,140 units, with the addition of 4,700 apartments and villas.
Some of the notable projects in the housing market include Mesaimeer City with 3,500 apartments, Burj Al Mana with 168 apartments, and Oryx Tower with 168 apartments in the West Bay area in addition to Ablan Endowment Project with 154 units in Fereej Bin Mahmoud.
Meanwhile, the Voya Tower project was launched in the Waterfront district, Lusail, during the quarter comprising 119 housing units for sale, which is expected to be completed by 2026. However, an estimated 8,000 units are in the pipeline for this year, among which 52 percent are concentrated in Lusail, The Pearl, and West Bay.
“The volume of transactions retracted substantially by 46.4 percent Y-o-Y and 4.7 percent Q-o-Q during Q2 2023,” the report said adding that the median transacted ticket size for residential areas amounted to QR2.7m, signaling a 3.6 percent reduction Q-o-Q. However, it still is 8 percent higher compared to the same quarter of last year. Areas including Al Thumama, Muaither, and Umm Garn had the highest volume of transactions for residential houses during the quarter, ValuStrat reports.
“The transaction volume for residential buildings fell by 23 percent Y-o-Y, with Old Airport, Umm Ghuwailina, and Fereej Abdel Aziz accounting for the majority of these transactions,” it said. The figures also indicate that the volume and value of transactions in The Pearl and Al Qassar receded by 15.4 percent and 9.7 percent Y-o-Y, respectively in the first half of 2023.
ValuStrat stated that “The median residential asking rent reduced by 2.4 percent quarterly to QR9,000 per month, 4.5 percent lower compared to Q2 2022.”
Although analysts say that the market corrections have been implemented for the apartment sub-market, the median monthly listed rent came down merely by 5.3 percent Y-o-Y and 2.2 percent Q-o-Q to QR6,250, respectively. Apartments in Al Wakrah and Al Sadd witnessed asking rents discounted by up to 15 percent relative to Q2 2022.
ValuStrat noted that the asking rents for villas dropped by 3.3 percent Qo--Q to QR11,000 per month, although rents continue to remain 1.6 percent higher than Q2 2022.
Occupancy of villa compounds in Abu Hamour, Al Aziziya, Duhail, and Al Waab was estimated at 80 to 85 percent, with an average rent of 8 percent more significant annually. Exceptionally, villas in Al Gharrafa experienced a substantial quarterly drop of 7 percent, compared to other areas across the country. The report said that the median quoted rent for 5-bedroom villas plunged the most by 4 percent Q-o-Q compared to other types of villas in Qatar.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q2 2023
