The Qatar real estate sector was stable in the previous quarter, and tourism thrived.
The Qatar real estate sector remained stable in Q3 2024, according to the latest review report from ValuStrat.
The report analyses the residential, commercial, and hospitality sectors and highlights resilience and strategic growth opportunities for investors.
Anum Hasan, Head of Research, Qatar, said the third quarter indicated continued stability across Qatar’s real estate market.
While some high-end regions experienced increased rental rates for larger bedroom units, the primary observation is that the market remained notably steady throughout the period.
The ValuStrat Price Index held consistent with the prior quarter at 96.6 points and showed no significant annual shift. Benchmarked to a base of 100 points set in Q1 2021, the apartment index registered at 97.5 points and villas at 96.3 points, with valuation prices in both categories showing no quarterly or yearly fluctuations.
Mortgage transactions declined by 10% QoQ and 8.5% YoY. Similarly, sales transactions dropped by 18% since the last quarter and 15% compared to last year.
Additionally, aligning with the US Federal Reserve, the Qatar Central Bank reduced the interest rate by 55 basis points. These concurrent changes could suggest that buyers may be holding off on purchases in anticipation of a more favourable rate decrease.
The office sector showed consistent performance every quarter, reflecting no notable fluctuations. The organised sector recorded a 2% decline in the retail segment, while street retail observed a 1% decrease.
Tourism rose by 25.6% YoY, reaching 3.9m visitors, with hotel occupancy up by 23% yearly. This growth is primarily driven by government-hosted local and international events taking advantage of the cooler months.
In the industrial sector, rental rates were stable quarterly, while temperature-controlled spaces saw a 2% improvement compared to last year.
She concludes that, in summary, while Q3 presented a stable real estate landscape, market signals suggest a measured outlook for the coming months, hinting at a mix of steady performance with selective areas of optimism.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q3 2024
