Qatar’s property market sees a surge in sales, decrease in rents

Strong mortgage activity in the second quarter of this year helped boost sales in Qatar's real estate market, according to real estate research firm ValuStrat.

Despite this surge in sales, rents fell in the residential, commercial, and industrial sectors.

Between April and June, some 1,300 flats and 120 villas were constructed. ValuStrat, a Dubai-based company, plans to finish around 9,000 units by the end of the current year and add another 6,500 the following year.

Residential sales increased by 15% year over year and by 35% over the prior quarter.

ValuStrat claims that changes implemented to Qatar's mortgage laws since the second quarter of last year are partly responsible for this increase.

Doha accounted for about 25% of all residential sales, with Al Rayyan accounting for around one-third of them. There was a 33% decrease in the overall transaction value and a 28% loss in volume in the Pearl Island and Al Qassar areas when compared to the previous quarter.

Over the preceding three months, renters' median asking prices for apartments dropped by nearly 2%, and on an annual basis, they dropped by 6%. Villa rentals were 1% less than they were at the start of the year, despite being marginally lower than in the same quarter of 2023.

Between April and June of this year, 10,540 apartment leases were signed, which is nearly 20% fewer than during the same period in 2023.

ValuStrat, utilizing data from the Ministry of Municipality and Environment in Qatar, reports that there were 4,075 villa leases overall, a 10.5% drop from the previous year.

Office space rents were flat from the prior quarter but down 3.6% year over year. Retail center rents fell by 2% every three months as well as by 5% annually.

When compared to the same quarter in 2023, the hotel sector had a noteworthy increase in visitor numbers — more than 25% year over year — which led to a 38% increase in income per available room.

Qatar is attracting more tourists with projects like the $5.5 billion (Dh20 billion) Simaisma entertainment development.