Key takeaways
- Residential stability: The ValuStrat Price Index (VPI) for residential capital values remained unchanged quarter-on-quarter in H2 2025, recording a 1.1% annual improvement to 97.6 points.
- Villa segment performance: Villa capital values rose 1.3% year-on-year, driven by demand for affordable communities such as recent Ezdan developments and renewed interest in Huzoom Lusail.
- Office rental trends: The Office Rental VPI held steady over the half-year, showing a 1.0% increase compared to Q4 2024, supported by government and multinational tenant relocations.
- Hospitality growth: Hospitality delivered the strongest sector momentum, supported by a 3.7% annual increase in visitor arrivals, a 7.2% rise in Average Daily Rate (ADR), and an 11.5% increase in Revenue Per Available Room (RevPAR).
How did Qatar's residential and office sectors perform at the end of 2025?
Featured in Arabian Business, market research from ValuStrat Qatar indicates that the national real estate market closed 2025 on a stable foundation, with gradual improvements across select sectors. Anum Hasan, Head of Research for Qatar at ValuStrat, noted that residential values and office rents recorded modest year-on-year gains, while hospitality generated the strongest growth driven by tourism expansion and an active events calendar.
Within the residential sector, villa capital values rose 1.3% annually, underpinning overall residential index gains. Demand remained concentrated in affordable villa developments, alongside renewed buyer activity in master-planned communities like Huzoom Lusail. Average house ticket sizes peaked at QR 3 million in Q3 2025 before moderating towards the end of the year. In the office sector, rents held steady across the second half of 2025, supported by relocations from government bodies and multinational corporations. However, elevated future supply is expected to keep rental growth contained, with performance increasingly determined by asset quality and tenant covenant strength.
What is driving performance across Qatar's hospitality, retail, and industrial markets?
The hospitality sector led real estate momentum across Qatar in H2 2025. Supported by an expanding international events calendar, visitor arrivals grew by 3.7% year-on-year. On a half-yearly basis, Average Daily Rate (ADR) improved by 7.2%, while Revenue Per Available Room (RevPAR) increased by 11.5%.
In the retail market, prime shopping malls maintained steady footfall and selective rental premiums, while street retail in Lusail experienced increased absorption from small businesses. Meanwhile, ambient warehouse rents in the industrial sector stabilised during the second half of the year, while cold storage rates posted a 1.1% gain, underpinned by logistics demand linked to North Field LNG expansion projects and e-commerce growth.
