Qatar real estate values remain stable
Apartment capital values in Qatar reached QAR 10,420 per square metre, remaining stable over 12 months.
The Pearl Island recorded sale rates of QAR 10,620 per square metre, showing no quarterly increase but registering a 1.6% rise year-on-year.
Qatar’s real estate market demonstrated resilience in the first quarter of 2025, with residential capital values holding steady whilst office rental rates declined and tourism visitor numbers dropped.
The ValuStrat Price Index (VPI) for residential capital values remained at 96.5 points in Q1 2025, unchanged from the previous quarter and year, according to the latest Qatar Real Estate Review. The index uses Q1 2021 as its base of 100 points.
Anum Hassan, Head of Research at ValuStrat Qatar, said: “The first quarter of 2025 reflected a broadly stable real estate landscape in Qatar, with most sectors experiencing either consolidation or modest downward adjustments.”
Mixed trends in the Qatar property market
Apartment capital values reached QAR 10,420 per square metre, remaining stable over 12 months. The Pearl Island recorded sale rates of QAR 10,620 per square metre, showing no quarterly increase but registering a 1.6% year-on-year rise.
Villa prices held steady at QAR 5,500 per square metre both quarterly and annually, though values declined 1.5% over two years. West Bay Lagoon and Old Airport saw decreases of 5.3% and 4% year-on-year, respectively, whilst Ain Khaled experienced a 2.2% increase.
The price-to-rent ratio for both apartments and villas remained at 19 years, with residential gross yield staying at 5.9%. Apartments recorded 8.4% yield whilst villas achieved 4.6%.
Residential transaction volume increased 13.2% quarterly and 67.1% year-on-year in Q1 2025. The median ticket size for housing units was QAR 2.7 million, up 3.8% quarterly but down 3.6% annually.
The Pearl Island and Al Qassar recorded a 54.3% surge in sales value, with transaction volume climbing 39.8% quarter-on-quarter. Doha and Al Dayeen saw the highest transaction activity.
ValuStrat launched its new Office Rental VPI in Q1 2025, covering over 90% of national office supply across seven major clusters. The index registered 97.4 points, indicating a 1.5% quarterly decline and a 2.6% year-on-year drop.
Weighted average rents across Qatar stood at QAR 95 per square metre per month. Grade A offices experienced a 1.8% quarterly reduction, averaging QAR 116 per square metre, whilst Grade B/C spaces remained steady at QAR 67 per square metre per month.
The office supply expanded by approximately 60,000 square metres of gross leasable area during the quarter, pushing total supply beyond 7.3 million square metres. Key additions came from Marina 31, Corniche Park Towers, and office space in Baraha Motor City.
Qatar recorded 1.6 million visitors in Q1 2025, primarily from GCC countries, though this represented a 6.7% year-on-year decline. Hotel occupancy reached 71.3%, down 3.5% year-on-year.
Average Daily Rates (ADR) fell 6.4% year-on-year to QAR 445, whilst Revenue Per Available Room (RevPAR) dropped 10.7% to QAR 317. Five-star hotels achieved an ADR of QAR 522, compared to QAR 175 and QAR 220 for three and four-star establishments, respectively.
“Tourism remained a strong contributor to economic activity, with 1.6 million visitors recorded—primarily from the GCC,” Hassan noted.
The hospitality stock totalled 40,787 keys, with 68% comprising four to five-star hotels. An estimated 845 hotel keys are set to enter the market in 2025, concentrated in the four and five-star segments.
New hotels inaugurated in Q1 2025 included the Andaz Doha with 256 rooms and Rosewood Doha with 317 keys.
Retail leasing values held steady over the period. The median monthly rate for shopping centres stabilised at QAR 182.5 per square metre quarterly, though it dropped 5.9% year-on-year.
Organised retail space expanded with the addition of Centro Mall (2,500 square metres) and Outlet Village (30,000 square metres), whilst approximately 20,000 square metres of unorganised space entered the market in West Bay and Lusail Marina.
The industrial segment demonstrated encouraging growth, with rents for ambient warehouses increasing 2.8% quarterly to QAR 35.3 per square metre, despite a 6.8% year-on-year decrease.
Cold storage facilities saw monthly median rents rise 3.6% quarterly and 5.5% yearly, reaching QAR 44.3 per square metre.
Commercial registrations grew 32% from Q1 2024, supported by QAR 50 million in industrial investment and eight new factory launches. A new ministerial directive allowing company setup using passports and reduced fees for foreign investors drove an 87% year-on-year rise in commercial licences.
Qatar’s real GDP in Q4 2024 grew 6.1% year-on-year, reaching QAR 181.1 billion, according to the National Planning Council. The International Monetary Fund forecasts average growth of 2.4% for 2025.
The Qatar Central Bank maintained deposit, lending and repo rates between 4.6% and 5.1% in Q1. The country’s population was estimated at 3.1 million.
The Consumer Price Index reached 106.9 points in Q1 2025, maintaining annual stability. The Housing and Utility index declined 4.9%, whilst the Communication sector increased 12.9% year-on-year.
The mortgage market recorded 323 transactions across all ready property asset classes in Q1 2025, down 2% quarterly but up 37% year-on-year. Total mortgage transaction value reached QAR 9 billion, reflecting a 63% quarterly drop and a 45% year-on-year decline.
The median monthly rent for residential units held steady quarterly but fell 1% year-on-year to QAR 8,500. Apartment lease values stabilised at QAR 6,000 since the previous quarter, whilst reflecting a 2% annual drop.
Over 18,000 apartment rental contracts were signed in Q1, marking a 15% increase both quarterly and yearly. New lease agreements accounted for 82% of total contracts, down from 95% in the previous quarter.
Villa median rent remained at QAR 11,000, stable quarterly but up 1% annually. Around 6,048 villa lease contracts were signed during Q1 2025, reflecting increases of 10% quarterly and 13.7% year-on-year.
Total residential stock during Q1 2025 was 401,542 units, comprising 253,513 apartments and 148,029 villas. An estimated 2,000 apartments were delivered during the quarter.
Key additions included 690 units at Gewan Island (The Pearl), 377 in Shahad Tower (West Bay), and 676 across Lusail Marina’s FJ Residence, Venice Tower, and Nayef Tower.
“In the months ahead, we anticipate further seasonal adjustments, particularly during the summer period, as the market continues to demonstrate resilience while adapting to evolving dynamics,” Hassan concluded.
The Qatar government prioritised real estate and tourism in Q1 2025, implementing new policies to enhance investment opportunities and streamline regulations. The government awarded approximately QAR 6.2 billion in projects, boosting foreign contracts by 50% whilst local firm allocations dropped 36.8%.
