Doha, Qatar: Analysts in the country state that the rents in Apartments witnessed a slight decrease soon after the World Cup held last year.
Johnny Archer, Director of Consulting and Research at Cushman and Wakefield in its quarterly report said that “The early months of 2023 have seen a return to the market conditions of 2020 and 2021, with a significant increase in the number of apartments available to lease.”
In 2022, due to the global sporting tournament, the rents increased drastically with fewer accommodations to lease. This eventuated in residents shifting to places that were affordable although with much difficulty.
Realty officials in the country predicted last year that 2023 will be expected with better rental opportunities and a well-balanced lifestyle. However, residents in the country were seen taking to social media platforms complaining about the unchanged rents post-FIFA 2022.
The report states that “Apartment rents have, by and large, started to return to pre-2022 levels, with incentives such as one-month rent-free periods and all-inclusive deals now commonplace once again. Without an increase in new demand in coming months, apartment rents should continue to soften throughout the year.”
Expert said that the supply has been boosted during the first quarter by “developments reserved for the World Cup” in the market.
According to Cushman and Wakefield, the Madinatna development on G Ring Road between Doha and Al Wakra has witnessed a surge in supply by nearly 7000 units and will offer direct competition to Ezdan Oasis and Mesaimeer City.
Numerous areas in the country including Msheireb Downtown Doha saw residents opting for fully furnished apartments in Q1 2023. Meanwhile, UDC-built The Pearl Qatar and other private developers on the island released various apartments and villas for rent during the first three months of the year.
The researcher said that “Villa rents typically increased by 3 percent to 8 percent last year. However, there have been no signs of significant rental reductions in Q1 due to high occupancy rates being maintained. Therefore, we expect current rents to be sustained over the coming months until there is a change in the supply and demand dynamic.”
Planning and Statistics Authority in its latest data revealed that the sales transactions in the residential market dropped by 25.5 percent last year as compared to 2021. However, the precise trend was seen from January to March 2023 as the sales transactions declined by 34 percent in the first two months compared to the same period last year.
