Doha, Qatar: Qatar’s commitment to actively pursuing an economic diversification agenda has created several lucrative opportunities.
The residential sales market in Qatar has grown since 2019 after the introduction of Law No. 16 of 2018 expanded the number of locations where property could be purchased by non-Qataris. This law has subsequently been supported by the establishment of the Real Estate Regulatory Authority (Aqarat), which aims to provide a regulated environment, where real estate investment opportunities are available to nationals, residents, and international investors.
While the sales market has seen significant growth, the majority of purchasers are owner occupiers, many of whom seek the benefits of residency within Qatar that is granted to real estate owners, Cushman & Wakefield noted in its Q3 2024 Real Estate Market Review.
Following an initial surge in activity after the introduction of the new law in 2019, sales have been slower over the past 24 months. According to statistics released by the Planning and Statistics Authority, residential real estate sales for the first seven months of 2024 numbered 923. This reflected an increase of 14.7 percent on 2023; however, a further increase in sales volumes will be imperative to keep pace with new upcoming supply in Lusail Marina, Qetaifan Islands, Lusail Waterfront, and Gewan Island.
The real estate consultancy firm further noted that the residential rents have remained relatively stable over recent months, which has seen a summer slowdown followed by a spike in activity in late August and September – coinciding with the beginning of the school year.
Occupancy rates in most of the Pearl Island districts and in Lusail’s Marina district remain high, especially in high quality buildings. The strong demand for apartments in prime locations has been driven by residents relocating within Qatar and a perceived return to more value in the market following a spike in rents ahead of the World Cup.
“Higher vacancy rates are more evident in locations such as Fox Hills and Al Erkiyah in Lusail, where new supply continues to be delivered. The increasing supply of apartments in major masterplanned communities to the south of Doha and in Al Wakra, including Madinatna and Al Janoub Gardens are putting pressure on occupancy rates in the secondary market. As a result, while prime residential rents are likely to remain stable in the short term, we may see downward pressure on rents and further rental incentives in many other locations in the coming months,” the report noted.
“Occupancy rates in Doha’s villa compounds remain high, with some developments within easy reach of West Bay now full and subject to waiting lists from prospective new tenants. Rents remain generally stable; however, in some developments we expect to see rental growth in the coming months,” it added.
