(MENAFN- The Peninsula) Deepak John |
The Peninsula
Doha, Qatar: Following the release of apartments back to the market post-World Cup there was a significant downward correction in rental rates in Doha during the first half of the year; however, residential rents have stabilised over recent months, stated Cushman and Wakefield in its Q4, 2023 Real Estate Market Review released, yesterday during a seminar.
Cushman & Wakefield Qatar and RICS hosted the real estate seminar which focused on how Qatar's real estate market has performed in 2023 together with projections for 2024 and beyond, based on recent market trends and insight.
Edd Brookes General Manager at Cushman and Wakefield Qatar and Head of Middle East delivered the welcome address. Mairead Hughes from the RICS discussed importance of adopting best practice international standards in Qatar's real estate market to attract investment in coming years.
Addressing the event, Johnny Archer (pictured), Head of Consulting and Research at Cushman and Wakefield said,“As Qatar's real estate market adjusts and matures following years of strong growth ahead of World Cup, receiving advice from real estate professionals has never been more important. The recent introduction of a new regulatory body is an important step for Qatar. A transparent and well-regulated market is imperative in attracting real estate investment”.
“Rents may soften in certain sectors of the apartment market in 2024 as new supply comes to the market,” he added.
The real estate consultancy firm's report about the residential market overview noted, as annual leases expire and new residents arrive in Qatar, there has been strong demand for apartments in newly constructed buildings of higher specification. This demand means that many new buildings in good locations often reach full occupancy within three months.
At the premium end of the market, there has been a noticeable trend in tenants relocating from older towers in the Pearl, to new buildings. This has led to a disparity in occupancy rates between buildings based on their age and quality.
The Q4 report further pointed out that residents in some of Doha's older suburbs are increasingly looking to relocate to modern apartments in Lusail's Fox Hills and Erkiyah City – which are often available at similar rental levels.
It added, while there is an increasing gap in occupancy rates between new apartment buildings and older buildings, occupancy rates are generally high in villa compounds across Doha, with incremental growth in rents during 2023.
Cushman and Wakefield statistics indicate that the supply of apartments and villas in Doha has grown to more than 400,000 units by 2024 – a compound annual growth rate in supply of 6.2 percent over the past decade.
“We expect the pace of new construction to slow somewhat in the coming years, with the largest amount of new housing concentrated in the various master planned districts of Lusail.
Apartments are commonly marketed with one-month rent-free. Furnished apartments typically command a premium of between QR500 and QR1,500 per month depending on the number of bedrooms. There is an increasing range of rents on the Pearl Island, due to the addition of new supply in Floresta Gardens and Giardino Village, while landlords of many older properties have reduced asking rents to attract tenants,” the report said
It added,“In Fox Hills, one-bedroom furnished apartments are now typically available for between QR5,000 and QR6,500 per month, with three-bedroom units now commanding between QR9,000 and QR11,000 per month.”
The number of residential sales transactions increased by 16.2% in October and November (YoY), possibly reflecting a slowdown in activity during the FIFA World Cup. Overall sales transactions in 2023 to November fell by 17.7%, according to PSA statistics.
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