Faisal Durrani (left), Partner – Head of Research, Knight Frank MENA; and Adam Stewart, Partner – Head of Qatar.
Doha, Qatar: Qatar’s real estate sector is proving resilient in the face of evolving market conditions. Despite a 5% year-on-year decline in villa and apartment sale prices, prime locations continue to command strong values, driven by demand for premium developments, according to Knight Frank’s biannual Qatar Real Estate Market Review.
Faisal Durrani, Partner – Head of Research, MENA, said: “Qatar’s housing market has experienced a prolonged period of softening prices over the past year, driven by a combination of interrelated factors. The extensive construction activity leading up to the FIFA 2022 World Cup significantly increased the housing supply. As a result, property values and rental rates have faced downward pressure, albeit some high-end neighbourhoods have continued to enjoy steady demand.”
“Despite this market dynamic, mortgage activity has increased, with Q4 2024 recording 294 transactions valued at QR24.8bn, a 168% jump year-on-year, signalling perhaps opportunistic refinancing activity, with purchasers capitalising on falling interest rates, which last year declined from 6.25% in January to 5.1% in December,” he added.
Among villa locations, Abu Hamour recorded the highest sale prices at QR8,587 per square metre, thanks to its smaller unit sizes and strong community appeal. Mid-tier villa locations such as Al Thumama (QR7,500 psm) and Al Kheesa (QR7,000 psm) offer competitive pricing, while Al Wakair (QR5,600 psm) and Al Kharaitiyat (QR5,807 psm) present more affordable options.
Apartment sale prices also declined 5% year-on-year, averaging QR12,625 psm. Luxury waterfront developments continue to see high demand, with Qanat Quartier (QR13,977 psm) and The Waterfront (QR14,300 psm) leading the market. Marina District (QR13,600 psm) remains a prime location, while Porto Arabia on The Pearl Island (QR11,834 psm) offers a more affordable alternative within The Pearl.
In Qatar’s apartment market, luxury residences continue to command stable rental rates, supported by sustained demand for premium living spaces. However, a two-tier market has emerged, with mid-range and budget-friendly apartments facing challenges stemming from oversaturation. The abundance of available units in more affordable locations has intensified competition among landlords, ultimately driving down rental prices, says Knight Frank.
Adam Stewart, Partner – Head of Qatar, explained: “Looking ahead, villa rental rates are expected to stabilise in prime areas, while secondary locations may see further adjustments due to softer demand. Apartment rentals in luxury developments such as The Pearl and West Bay are expected to remain stable, supported by steady occupancy levels.”
