Doha, Qatar: The government of Qatar is spearheading the development of major projects across various economic sectors in Qatar, stimulating short-term demand while shaping long-term supply, a market expert said, adding that its reforms in the regulatory framework for foreign investment and public-private partnerships have boosted interest from international buyers.
Noting the regulatory changes during the fourth quarter of last year that shapes Qatar’s real estate landscape, Anum Hassan, Head of Research for Qatar at ValuStrat told The Peninsula “In 2024, changes to mortgage laws led to increased demand for properties among expatriates, a trend expected to continue driving higher transaction volumes in 2025.”
Last year saw the office and residential markets experiencing stable rents, with a noticeable upward shift in premium locations and projects. Hassan indicated that this momentum is expected to continue this year, with potential amplification of the trend. Furthermore, the completion of delayed projects from 2024 is anticipated to add to market activity.
“Coupled with a significant rise in mortgage transactions, which reflects improved access to financing, these developments are likely to stimulate demand for both residential and commercial properties,” Hassan said. Meanwhile, the economic policies and developments of 2024, including the reduced industrial land rental rates and enhanced real estate regulations, are expected to stabilise real estate prices and boost investor confidence in 2025. The official stressed that these measures, coupled with infrastructure upgrades and increased mortgage accessibility, are likely to drive demand and improve rental yields, particularly in premium locations.
On the other hand, the disparity between the performance of secondary and premium market segments is expected to persist in 2025. Hassan elucidated “While the overall market remains stable, this variation can be attributed to the mismatch between the diverse income levels within the population and the incoming supply, which is tailored to different demographic and income groups.”
Moreover, households and companies prefer high-quality housing and offices. She said, “As the rentals have become affordable post 2022, it makes sense that households and companies are flocking to ‘Affordable luxury’.”
She further highlighted that projects in premium locations or of higher quality are performing strongly. “This success may encourage developers to focus their investments on properties in these areas or cater to this segment in the short to medium term,” Hassan added.
According to recent findings by ValuStrat, 2024 closed with a measured resilience, supported by strength in residential, tourism, and hospitality, while other sectors either held steady or saw minor adjustments in the Qatari market. This sets a controlled yet optimistic tone for the year ahead.
