(MENAFN- The Peninsula)
Joel Johnson
|
The Peninsula
Doha, Qatar: Qatar's property sector reported a thriving period as sales transactions significantly rose during the second quarter of 2024.
In its latest report, Cushman & Wakefield Qatar highlighted that there is a robust underlying demand for higher specification buildings in key areas as residents are taking advantage of rental declines, which saw a general downward since 2022.
In The Pearl, the demand soared in residential buildings such as Viva Bahriya and Floresta Gardens with tenants drawn towards the high quality of finishing, property management services, and all-inclusive rents offered by landlords.
On the other hand, vacancy rates are expected to increase for residential towers in Porto Arabia, especially in older buildings, where apartments are often owned by individual building owners.
Meanwhile, occupancy rates in Lusail have inclined mainly in the Marina District, where the demand for new towers is exceptionally high.
Vacancy rates for numerous apartment buildings in districts like the Fox Hills and Al Erkiyah increased, with more flexible lease incentives available.
The report said,“Large masterplanned apartment projects to the south of Doha and in Al Wakra, including Madinatna and Al Janoub Gardens, have increased supply significantly and put pressure on occupancy rates and rents in the mid-market as developers compete to attract tenants.”
Analysts also noted that“Rents in these major developments have reduced since 2022 and now range from QR3,500 for a one-bedroom apartment to QR5,800 for a three-bedroom apartment.”
However, residential villa compounds continue to experience high occupancy and stable rents in Doha. Researchers stated that“The relative lack of availability compared to the apartment sector has resulted in upward pressure on rents in some of Doha's more popular compounds.
While rents have generally remained stable so far this year, some compounds no longer offer the rental incentives to new tenants that had been commonplace in recent years.”
The Planning and Statistics Authority revealed in its latest data that the number of residential sales transactions went up by 16.4 percent from January until May 2024 compared to the same period last year.
The transactions witnessed a decline since 2021 by 44 percent, as record sales were registered after the introduction of new laws governing property ownership.
Market experts accentuated that the sales continue to be dominated by owner-occupiers rather than investors.
However, the sales activities in residential properties are driven mostly by tenants aiming to secure residential permits and avoid paying rent.
In the meantime,“Purchasers are also being encouraged by the increasing flexibility of structured payment plans for new off-plan sales being offered by many developers in Lusail's various residential districts”, the report explained.
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