According to a report by consulting and advisory firm ValuStrat, there will be 9,200 units of residential stock supply in Qatar overall by 2024, with 40% of those units being in Lusail.
About 6,200 units are projected for 2025, according to ValuStrat’s first-quarter report.
Based on Census 2020 data, the residential stock was projected to be 394,000 units in Q1, 2024, comprising approximately 148,000 villas and 246,000 apartments.
In comparison to the previous quarter, there was a 34% decrease in the volume of transactions in the residential segment.
While remaining steady year over year, the median transacted ticket size for residential units grew by 3.7% every quarter to QR2.8 million. The two cities with the most transactions involving residential properties were Doha and Al Rayyan.
In Q1 of 2024, there were 233 mortgage transactions totaling QR13.5 billion.
The median monthly rental value of a residential unit decreased 3.6% on a quarter-over-quarter basis and by 6% year over year, as per ValuStrat.
In Qatar, the monthly rental price of an apartment was QR6,000, indicating a quarterly decline of 4% and an annual decline of 6.3%.
One-bedroom apartments rented for an average of QR5,500 per month, two-bedroom apartments for QR6,500, and three-bedroom apartments for QR8,250.
Al Wukair, Al Mashaf, and Al Thumama were the top residential areas with an estimated 5,000 agreements, out of approximately 15,000 lease contracts signed during the quarter (Ministry of Municipality and Environment).
The villa submarket shrank by 4% a year and 1% every three months. West Bay Lagoon and Al Wakra saw increases in villa rental rates of 3.5% and 1.2%, respectively.
For a three-bedroom villa, the median quoted rent was QR11,750; for a four-bedroom, it was QR12,500; and for a five-bedroom, it was QR14,000.
Freej Al Soudan, Al Aziziya, Ghanim, and Murrah were the most popular residential areas, accounting for an estimated 600 contracts out of the approximately 5,000 lease agreements signed during the quarter (Ministry of Municipality and Environment).
At 97 points, the ValuStrat Price Index – Residential Capital Values did not fluctuate on a quarterly or annual basis.
As of Q1, 2021, this is contrasted with 100 base points.
Apartment unit valuations remained unchanged from the previous quarter, hovering around QR10,320 per square meter; prices had been steady for the previous two years as well.
In a similar vein, the villa market held steady every three months but saw a 1% annual decline in prices, ending at QR5,544 per square meter.
The three areas with the best QoQ performance for villa prices were Muaither (1.7%), Al Thumama (4.1%), and Old Airport (6.3%).
Gross yields on residential property stayed at 5.9%. Villas made up 4.8% of the total, while apartments made up 8%. The price-to-rent ratio was estimated at 19 years.
