(MENAFN- The Peninsula) Joel Johnson |The Peninsula
Doha, Qatar: Qatar has seen tremendous growing demand for residential properties in recent months as industry leaders note many new projects are in the pipeline for the current year.
Speaking to The Peninsula, Anum Hassan, who leads the Research team at ValuStrat said:“Rents decreased by 7 percent per year by the end of 2023, and there was no change in Q4 of that year. Over 6,000 units are in our pipeline for 2024, and most of them are planned apartment buildings.”
The market expert highlighted the post-FIFA fluctuation in the residential market, which saw a fall in rental prices across the country.
“After the World Cup 2022 concluded, we witnessed a significant decline in occupancy during the first half of 2023w. Rents thus decreased by 5 percent YoY in comparison to Q2 2022. However, a slowdown in the growth of the residential supply and an increase in demand during the second half of the year caused the drop in rentals to slow down,” she said.
Meanwhile, Qatar's capital city tops the most sought-after places to live, making it convenient for individuals to commute to the business and financial hubs. The expert also mentioned the rising occupancy rate in 2024 as compared to its previous years.
Hassan said“Premium locations are preferred in Doha since residential projects get absorbed within 3-6 months than residential complexes in secondary places.
On the other hand, the lack of new villa constructions during the last three years has largely contributed to the high occupancy and stable rentals of villa complexes in Qatar.”
She further added“The residential sales market experienced a decline in transaction volume during 2023, reflecting a slowdown in activity. Changes in mortgage regulations are expected to pick up volume in the medium term.”
During its quarterly report, ValuStrat stated that the market remained stable in Q4 2023, but declined 1.7 percent per annum to reach 64.1 points, which is compared to a 100-point base set in Q1 2016.
The average capital values of apartments remained stable QoQ but decreased by 2 percent YoY, amounting to QR10,285 per sq m. Moreover, apartment prices observed in The Pearl Island, Lusial, and West Bay Lagoon were steady at QR10,400, QR10,160, and QR9,620 per sq m respectively, when compared to the previous quarters.
However, according to Mordor Intelligence the Qatar residential real estate market is anticipated to record a compound annual growth rate of 6.24 percent, while the size of the sector is valued at $4.28bn in 2024.
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