While apartment rental rates fell in the second quarter of this year, several industries nationwide have shown signs of stabilization.
On the other hand, Q3 2023 saw a rise in demand for apartments in Lusail, per Cushman & Wakefield’s quarterly report.
The report said: “Reduced rent, coupled with rent-free incentives saw an increase in demand for apartments in The Pearl Qatar and Lusail in August and September, which coincided with the beginning of the school year.”
As the supply surges, there is also an increasing disparity between occupancy rates within the market. “High-specification buildings with good-quality property management are starting to enjoy high demand from prospective tenants, despite evidence of higher vacancy rates throughout the market,” stated Cushman & Wakefield.
This year has seen a rise in occupancy for recently constructed, elegant apartments like Madinatna and Ezdan Oasis, which benefited from strong demand during the FIFA World Cup 2022. These apartments are offering new tenants appealing rental packages.
Compound villas in Doha continue to benefit from high occupancy rates since rentals are comparatively steady all year long. According to the report, depending on the building’s quality and location, one-bedroom apartments at The Pearl Island can typically be leased for between QR7,000 and QR9,500 per month.
Conversely, there are several three-bedroom apartments on the Island that can be rented for between QR13,500 and QR16,500 a month. One-bedroom apartments in Fox Hills currently rent for approximately QR5,000 to QR6,500 per month, while three-bedroom apartments cost between QR8,500 and QR10,000 per month.
In comparison to the same period in 2022, there was a 3.1% decrease in housing market sales transactions in July and August, according to a report recently released by the Planning and Statistics Office.
In 2023, the total number of sales transactions decreased by 24.5 percent so far this year. The implementation of Law No. 16 of 2018 in 2020 caused a spike in activity, which in turn caused a decline in sales. However, this law allowed foreigners to purchase real estate in Lusail and take advantage of the residency permits that the investors were awarded.
“Structures are being put in place in 2023 to develop the real estate investment sales market in Qatar in the coming years,” the report noted adding that the launch of a Real Estate Regulatory Authority (RERA) will increase transparency in the market and enhance statutory and legal protections for investors.
It further added that “Qatar Central Bank (QCB) has announced a series of amendments to its real estate financing (mortgage) regulations, which is expected to boost the residential sales sector by redefining the loan-to-value rates and increasing maximum mortgage terms for Qatari nationals and expatriates.”