Throughout the nation, the residential market held steady during the second quarter of the year, suggesting notable increases in rental rates. That being said, 2024’s first three months were a slow time.
Hapondo recently released a report stating that while one-bedroom apartment rents in key downtown areas of Doha remained stable and the two-bedroom market saw “an even better” start to the year, villa apartment rents saw a sharp increase in the same quarter following a strong first quarter.
Analysts report that while the market in Al Sadd, Najma, and Doha Jadeed remained solid, the average rent for one-bedroom apartments increased by 4.8 percent, 6.6 percent, 7.3 percent, and 2.5 percent in Fereej Bin Mahmoud, Musheireb, and Al Mansoura.
In contrast, the average rent for two-bedroom apartments went up in Najma (3.9%), Umm Ghuwailina (4.2%), Fereej Bin Mahmoud (4.4%), and Musheireb (2.2%), but it stayed the same in Doha Jadeed and Old Airport.
While there was some downward pressure on the rents of one-bedroom apartments in West Bay, Marina, The Pearl, and Fox Hills, the rents of two-bedroom apartments showed either marginal growth or stability.
Market experts noted that Fox Hills showed green shoots after several consecutive quarters of falling rents. The report further stated that “The average two-bedroom rent in Fox Hills grew by 1.7 percent, while the average one-bedroom rent increased by a marginal 0.5 percent. The projected gross rental yield in Fox Hills increased slightly from 6.4 percent in Q1 to 6.5 percent in Q2. Moreover, the gross apartment rental yields in the prime markets remain considerable. As per hapondo’s data, the West Bay residential area offered the highest one-bedroom gross rental yield at 8.1 percent and was tied with Fox Hills in the two-bedroom category at 6.8 percent if one had bought and rented an apartment in the second quarter. Across Doha’s prime apartment market, gross rental yield averaged 6.3 percent during April, May, and June.
In the meantime, non-prime villas saw a 5.7% increase in rent per square meter, while villas in upscale neighborhoods like West Bay Lagoon, Legtaifiya, and The Pearl saw an increase of 2.2 percent.
The average rent per square meter at The Pearl increased noticeably by 17.7 percent, indicating the high demand for prime locations that have driven up the cost of available properties. Other neighborhoods with notable increases in villa rentals are Al Thumama (5.9 percent), Old Airport (14.2 percent), and Al Mamoura (4.4 percent).
Commenting on the market, Ahmad Al Khanji, CEO and Co-Founder of hapondo said: “We saw a much more vibrant residential market in Q2 with rents increasing and favoring apartments in the downtown areas, the two-bedroom apartment market, and the villa market, in general.”
