Qatar’s real estate market showed signs of stabilisation across the residential sector in Q1 2024, as per the recent ValuStrat Price Index (VPI) data. The VPI for residential capital values remained steady at 97 points, reflecting no significant change compared to previous quarters and years.
In Q1 2024, the residential stock was approximated to be 394,000 units, comprising 148,000 villas and 246,000 apartments. Significant projects completed during this period included Murano Tower and Tower 33, located in Lusail Marina, with a combined total of 365 apartments. Additionally, 50 villas were completed during the quarter.
Doha and Al Rayyan witnessed the highest number of residential house transactions, with a total of 233 mortgage transactions valued at QAR 13.5 billion. However, The Pearl Islands and Al Qassar saw a significant decrease in both transaction values and volume, with a 68% and 44% drop compared to the previous quarter.
According to the report, in 2024, the projected total supply will be 9,200 units, with 40% expected to be situated in Lusail. For the following year, 2025, an anticipated 6,200 units are forecasted. The Janoub Garden Residence is the largest project slated for completion in 2024, comprising a minimum of 2,400 apartments to be delivered in phases.
The median monthly rental value for residential units saw a decrease of 3.6% from the previous quarter and a 6% decline compared to the same period last year. In Qatar, the average monthly leasing rate for apartments stood at QAR 6,000, showing a quarterly decrease of 4% and an annual drop of 6.3%. Over the quarter, around 15,000 lease contracts were signed, with Al Wukair, Al Mashaf, and Al Thumama emerging as the top residential areas with approximately 5,000 agreements.
In the villa sub-market, there was a 1% decrease in leasing rates quarterly and a 4% decrease annually. Notably, villa lease rates in West Bay Lagoon and Al Wakra experienced an increase of 3.5% and 1.2%, respectively. Throughout the quarter, around 5,000 lease agreements were signed, with Freej Al Soudan, Al Aziziya, Ghanim, and Murrah standing out as the top residential areas, comprising an estimated 600 contracts.
Within the office sector, government establishments gradually absorbed the office spaces in premium locations. However, the segment as a whole observed a citywide depreciation of 1.5% in rental value.
Retail shopping centres in the country mimicked last quarter’s prices. However, changes were observed within the street retail segments inside and outside Doha, with the former decreasing by 6% and the latter increasing by 3.1% QoQ.
The hospitality sector recorded an 11% annual increase in the Average Daily Rate (ADR) while the Revenue per Available Room (RevPAR) surged by 53%.
Overall, the Qatar real estate market seems to be stabilising, with potential for future growth in specific areas like Lusail. While rental rates have softened, the hospitality sector is experiencing a boom.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q1 2024
