(MENAFN- The Peninsula)
Joel Johnson
|
The Peninsula
DOHA: The residential industry across the country stood robust during the second quarter of the year, indicating significant improvements in rents. However, the first three months of 2024 served a sluggish period.
According to a report released recently by hapondo, key downtown areas in Doha witnessed steady one-bedroom apartment rents and“an even better” two-bedroom market during quarter two, whereas the rents of villa apartments surged rapidly in the same quarter after a promising start in the first quarter of the year.
According to analysts, the average rent among the one-bedroom apartments rose in Fereej Bin Mahmoud by 4.8 percent, Musheireb by 6.6 percent, Old Airport by 7.3 percent, and Al Mansoura by 2.5 percent, while the market in Al Sadd, Najma, and Doha Jadeed remained sturdy.
On the other hand, in the Two-bedroom apartment category, the average rent increased in Najma by 3.9 percent, Umm Ghuwailina by 4.2 percent, Fereej Bin Mahmoud (4.4 percent, and Musheireb (2.2 percent, while it remained stable in Doha Jadeed and Old Airport.
Albeit rents in the one-bedroom apartment category in West Bay, Marina, The Pearl, and Fox Hills encountered downward pressure, the two-bedroom apartment rents were marked by either stability or marginal growth.
Market experts noted that Fox Hills showed green shoots after several consecutive quarters of falling rents. The report further stated that“The average two-bedroom rent in Fox Hills grew by 1.7 percent, while the average one-bedroom rent increased by a marginal 0.5 percent. The projected gross rental yield in Fox Hills increased slightly from 6.4 percent in Q1 to 6.5 percent in Q2. Moreover, the gross apartment rental yields in the prime markets remain considerable. As per hapondo's data, the West Bay residential area offered the highest one-bedroom gross rental yield at 8.1 percent and was tied with Fox Hills in the two-bedroom category at 6.8 percent if one had bought and rented an apartment in the second quarter. Across Doha's prime apartment market, gross rental yield averaged 6.3 percent during April, May, and June.
Meanwhile, the average rent per sqm of villas in prime neighborhoods including West Bay Lagoon, Legtaifiya, and The Pearl grew by 2.2 percent and that of non-prime villas by 5.7 percent.
The Pearl registered a noteworthy boost of 17.7 percent in the average rent per sqm, evidence of the demand in prime locations that have pushed up prices of properties listed in the market. Other neighborhoods that registered significant villa rental growth include Old Airport (14.2 percent), Al Thumama (5.9 percent), and Al Mamoura (4.4 percent).
Commenting on the market, Ahmad Al Khanji, CEO and Co-Founder of hapondo said:“We saw a much more vibrant residential market in Q2 with rents increasing and favoring apartments in the downtown areas, the two-bedroom apartment market, and the villa market, in general.”
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