ValuStrat, a leading real estate advisory, valuations, and strategy consulting firm, released its review of Qatar's real estate market for the fourth quarter of 2023. Market stability was recorded across most rental sectors, with median rental rates remaining steady for villas, commercial, retail, and temperature-controlled warehouses.
Anthony Fernando, MRICS – ValuStrat's Director, Qatar, commented, "We observed the market reaching a stability stage in most real estate sectors, with single-digit declines expected to follow across few segments. On the other hand, the consequent stability in rents and prices continues to improve affordability for tenants and buyers. As supply expands in all real estate sectors, some minor corrections may be expected in the coming quarters. A keen eye is placed on the delayed office projects pushed into 2024 and their occupancy levels."
The ValuStrat Price Index (VPI) for Q4 2023 recorded consistent prices quarterly, standing at 64.1 points.
The VPI is a valuation-based price index set at 100 points as of Q1 2016.
In terms of housing supply, an estimated 795 apartments and villas were added during Q4 2023, increasing the residential stock to over 343,500 units.
Compared to Q3 2023, the residential median monthly rentals stabilised at QAR 9,100. The apartment sub-market saw the median monthly asking rent fall by 7.5% YoY but increase by 0.5% QoQ, standing at QAR 6,250.
While asking rents in the villa sub-market remain stable compared to the previous quarter, the rentals were 6% lower yearly, with the median quoted monthly rent at QAR 11,000.
The office sector witnessed heavy project delays, pushing expected completions to this year. By the end of 2023, the office stock reached 7 million sq m GLA, with 65% falling within the Grade A category. An estimated 185,000 sq m GLA is expected to be delivered in 2024. The citywide median monthly asking rent for offices was stable but observed a 5.6% drop YoY, reaching QAR 67 per sq m.
The organised retail sector stock remained stable at approximately 2.4 million sq m GLA with no significant additions. Median monthly rents for shopping centres saw no change compared to the previous quarter and persisted at QAR 194 sq m; however, rents recorded a 7.6% decline annually. For street retail, rental rates within Doha fell by 3.4% QoQ, reaching QAR 140 per sq m and depreciating 9% YoY.
Visitor numbers jumped to 4 million last year, indicating a 58% increase YoY supported by the hosting of the AFC Asian Cup. However, after the surge in prices seen during FIFA, the Average Daily Rate (ADR) declined by 45% YoY to QAR 410, and Revenue per Available Room (RevPAR) also fell by 44% YoY to QAR 237, according to data published by Qatar Tourism.
On the industrial front, the median monthly asking rent for dry warehouses dropped by 3.4% QoQ to QAR 37.8 per sq m. Whereas the median asking rent for temperature-controlled warehouses was stable at QAR 42.2 per sq m QoQ, an 8.6% drop annually.
ValuStrat's Q4 2023 report provides crucial insights for stakeholders, illustrating the Abu Dhabi real estate market's vibrant growth trajectory and its promising outlook for the future.
To learn more about ValuStrat's real estate market capabilities and our research outputs, please visit ValuStrat's Insights Webpage.
About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 13 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q4 2023
