Residential rental rates may stay steady across most locations in the country in early 2025, researcher ValuStrat has said in a report.
The total value attributed to mortgage transactions reached QR24.8bn in Q4-2024, reflecting a significant increase of 168% compared to the same period last year, ValuStrat said in a country report.
During the fourth quarter of 2024, the Qatar real estate market witnessed some 294 mortgage transactions across all asset classes of ready properties, an increase of 23.5% y-o-y.
Approximately 12,000 apartment rental contracts were signed during Q4-2024, measuring a decline of 21.3% yearly. New agreements accounted for 93% of the total leases.
Approximately 4,800 lease agreements were finalised for villas, reflecting a 5.3% y-o-y decline, with 86% comprising new contracts.
In the office segment, an estimated 170,000sq m gross leasable area (GLA) was expected to be added during the fourth quarter however construction delays have pushed the completion dates to 2025.
According to Anum Hassan, head of Research, Qatar at ValuStrat, the country’s real estate market remained largely stable over the past year, with outcomes closely mirroring expectations.
While modest declines were observed in certain segments, the overall market held steady.
A slight recovery was evident in the second half of the year, particularly in the residential sector, where larger, high-end units saw improved performance in select areas.
The ValuStrat Price Index (VPI) showed limited fluctuation, reflecting the market's stability.
Both villas and apartments retained their value, reinforcing their appeal as reliable investment options.
Initially sluggish, sales transactions accelerated by Q4 of 2024, climbing nearly 50% annually, marking the highest levels of the year.
Mortgage activity mirrored interest rate trends, with increased transactions in the first half of the year, likely driven by anticipation of further rate hikes, followed by a slowdown in Q3 of 2024 as rates eased. The fourth quarter delivered robust performance, with transactions rising 25% y-o-y and a remarkable 168% annual growth in value, indicating a sharp rebound as buyers capitalised on favourable conditions.
In the office segment, momentum subtly shifted. Grade A offices in West Bay and Lusail saw increased occupancy, affirming their appeal, while secondary locations faced challenges with lower occupancy and softening rents.
Overall, office rents across the city remained steady throughout the year, highlighting their consistent demand, Hassan noted.
The hospitality sector emerged as a standout performer, supported by a well-structured events calendar that sustained visitor inflows. Annual occupancy rates remained above 66% even during the typically slower summer months, showcasing Qatar’s strategic efforts to position itself as a year-round destination.
The retail sector showed mixed performance. Malls and street retail in
Doha saw slight quarterly declines, whereas retail outside the city exhibited greater stability, maintaining steady demand throughout the year.
The industrial sector also showed mixed trends: dry warehouses dipped in demand early in the year but stabilised later, while temperature-controlled facilities steadily grew, driven by consistent demand for specialised storage.
“The outlook for 2025 reflects a sense of measured anticipation. While the market has remained stable in recent quarters, early signs of improvement in certain areas suggest the potential for similar trends across other segments of the real estate market,” Hassan noted.
For a detailed perspective on the property market, visit: Dubai - Review 2024 - Outlook 2025
