Property Finder: Qatar's Real Estate Rental Market Sees Demand Outstripping Supply
Doha, Qatar – 13 September 2022: The latest Qatar Real Estate Market Trends Report from Property Finder, MENAT’s leading prop-tech company, identified a significant surge in rental demand during H1 2022, outstripping supply for the first time; subsequently, investments in apartments reached an all-time high.
The report’s eighth edition highlights key market insights from 16 local-sector experts, showcasing how limited supply has driven price increases across all areas and unit types. Doha recorded an H1 year-on-year (YoY) uplift of 23% in average rental unit pricing, while Al Khor witnessed a 38% price rise over the same period. This demand shift is a result of Qatar’s imminent hosting of the 2022 FIFA World Cup™.
The report also stated that the price rises are anticipated to be temporary, with demand expected to decrease slightly in 2023, creating a more stable price index for rental units. Currently, the demand for apartments, particularly short-term and serviced units, continues to rise.
Qatar’s residential stock is estimated at 308,000 units, 700 of which were added during Q1 2022, particularly in The Pearl and Lusail. Occupancy of residential units is reported at 80%, mainly due to demand for leases by the Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup™ and companies seeking staff accommodation.
According to the report, Qatar’s sales market continues to gain traction, with the Ministry of Justice’s Quarterly Real Estate Bulletin citing 1,251 property sale transactions during Q1 2022, totalling 4,859,712,958 QAR. The report attributes the sales demand to Qatar’s new foreign property ownership, the attractive investment laws and their inherent advantages, and an increase in the areas foreigners are now allowed to invest in.
“With Qatar about to host one of the world’s most popular sporting events, investors and first-time buyers are now more confident in investing in the market. The Ministry of Justice is also taking the necessary steps to create a more transparent market, which will open the doors for further investments in the near future,” commented Afaf Hashim, Country Manager at Property Finder Qatar.
Sales listings for Doha during H1 2022 on Property Finder Qatar’s website jumped 14% YoY, resulting in a 27% increase per square metre in the advertised average price. Concurrently, sales listings for Lusail rose by 7% per square metre over the same period.
The Rental Landscape:
Apartments: In H1 2022, rental price increases were recorded across Qatar, and advertised median prices were affected by a significant fluctuation in the number of listings on Property Finder Qatar’s portal. West Bay Lagoon, previously a villa-dominant area, is now seeing apartment offerings, consolidating the rise in apartment listings by 45% during H1 2022, compared to H1 2021, while listings for the Old Airport Road area more than doubled. The Al Hilal and Al Rayyan areas recorded H1 YoY price increases from 3,325 QAR to 4,500 QAR and from 6,500 QAR to 9,000 QAR due to new, higher-priced stock entries. Additionally, some of the highest price increases were recorded in the Marina District (from 9,000 QAR to 12,750 QAR) in line with increased demand for Lusail, while prices on Corniche Road and Fereej Bin Mahmoud saw prices dip slightly over the same period.
Villas: Almost all locations recorded H1 YoY price increases, with Al Aziziyah, Al Maamoura, and Umm Salal Mohammad witnessing the highest rises due to new, higher-price stock entering the market. Villas remain popular rental choices for renters in Qatar, with previous price decreases stimulating occupancy. The stock continues to rise in Abu Hamour, with listings for the area jumping by 85% in an H1 YoY comparison. A surge in stock has been seen in Al Hilal, where prices rose 75% over the comparative period as a direct result of H1 completion handovers.
The Sales Landscape:
Apartments: Increased sales demand was recorded in the market, particularly for apartments. With strong demand, increased stock, and government efforts to boost local and foreign investments, prices failed to stabilise in H1 2022. H1 prices in Al Sadd rose by 10,900 QAR to 14,423 QAR per square metre YoY, with listing in the same period soaring by 56%. The Waterfront also saw a significant upswing in advertised median price, increasing from 15,500 QAR to 17,460 QAR per square metre due to rising demand in the area. Lusail continued to gain traction and is quickly becoming one of the top choice areas for investment. “Even though the market has not been able to find a steady price trend for apartments for sale, transactions continue to increase, especially as investments continue to reach an all-time high across Qatar’s various markets,” states the report.
Villas: Interest in villa sales grew with the opening of new areas for real estate investment, evident by the increased listings on www.propertyfinder.qa. H1 2022 villa listings for West Bay rose by 87% YoY, reflecting the availability of new stock, while listings for Ain Khaled jumped by 47% over the comparative period. Pricing for villas continued to fluctuate due to increased pricing transparency resulting from market regulation spearheaded by the Ministry of Justice. Advertised median prices for villas in Al Kheesa increased from 6,917 QAR to 7,619 QAR per square metre over the comparative period due to increased inventory with the tripling of listings for the area. With additional villa stock, Lusail City also recorded an increase in advertised media price, moving from 10,865 QAR to 15,625 QAR per square metre in the same time frame.
Property Finder’s latest Trends report also offers key market insights from sector leaders covering a range of influencing factors, including prospects for the fully furnished sector, expatriate investment options, forecasts for commercial and office space demand in Qatar, market transparency, the impact of the 2022 World Cup, agent commission fees, future developments, latest design trends, and the prospect for holiday homes.
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