During the first quarter of 2024, the real estate sector in Qatar witnessed stability in its residential areas, according to the latest report from ValuStrat entitled “Qatar Real Estate Research for the first quarter of 2024.” The real estate sector witnessed a remarkable quarterly growth of 89% in the value of mortgage transactions across all asset classes. Moreover, it witnessed a year-on-year increase of 36.8 percent. Besides, residential sales saw a 3.7 percent increase compared to the fourth quarter of 2023.
Real estate market stability
According to the ValuStrat Price Index, residential capital values stood at 97 points, representing no overall change on a quarterly and annual basis. While the apartment sector scored 97.8 points, and has remained stable over the past two years. The villa market has also remained relatively stable, declining slightly by 1 percent annually. In the first quarter of 2024, the real estate sector in Qatar recorded 236 mortgage transactions across all asset classes. The total sales value of mortgage transactions reached 16.8 billion riyals, a quarterly increase of 89%, and an annual increase of 36.8%. In addition, the largest number of units traded were villas, with an annual increase of 6.6%. The report attributes this increase to the amendments to housing loans introduced by the Qatar Central Bank last year.
The office sector is down slightly. The real estate sector in Qatar has witnessed changes in the office sector as government institutions gradually absorbed office space in prime locations. Despite this, the sector overall saw a 1.5% decline in rental values. Retail shopping centers in the country remained stable compared to prices in the last quarter. However, the real estate sector witnessed changes in the high street retail sectors in and outside Doha, with the former declining by 6 percent and the latter rising by 3.1 percent on a quarterly basis. Qatar's hospitality sector recorded an 11 percent annual increase in average daily rate, while revenue per available room rose by 53 percent in the first quarter of 2024.
Real estate offer
The report estimated that in the first quarter of 2024, the housing stock in the real estate sector in Qatar reached 394,000 units, including about 148,000 villas and 246,000 apartments. Among the most prominent projects that have been completed are Murano Tower and Tower 33, both in Lusail Marina, with a total of 365 apartments. ValuStrat expects total supply in 2024 to reach 9,200 units, 40 percent of which will be in Lusail. Furthermore, it expects an additional 6,200 units in 2025.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q1 2024
