According to the ValuStrat Price Index (VPI), the nation’s residential sector remained stable every quarter during the fourth quarter (Q4) of 2023.
Prices in places like West Bay Lagoon and Muaither went up by 1% over the previous quarter. With the addition of 795 houses in the final quarter of 2023, the residential stock surpassed 343,500 units.
Experts at the international research and valuation consulting firm observed that of the 12,500 homes projected for 2023, nearly 11,000 were delivered in the previous year. During Q4 2023, notable projects include the residential buildings in Lusail, Al Serdal (120 apartments), and Al Kharaej (150 units).
Conversely, Just Real Estate opened The Lane Residence, the first residential building on Lusail Boulevard, with 79 apartments spread over 11 stories. Concurrently, JMJ Group Holding introduced JMJ Waterfront Residence, an opulent waterfront skyscraper, in the preceding quarter.
In Lusail City, the project consists of 172 one- and two-bedroom apartments and chalets. Nonetheless, more than 2,200 units were reportedly planned for Q1 2024, with 30% of them being built in Lusail City and 40% concentrated on The Pearl Island.
In addition, compared to the previous quarter, apartment prices in The Pearl Island, Lusail, and West Bay Lagoon held steady at QR10,400, QR10,160, and QR9,620 per sq m, respectively.
The report emphasized that there was a quarterly and annual increase in transaction volume of 14% and 33%, respectively. Residential unit median ticket size decreased 5.3% YoY but remained stable QoQ at QR2.7 million. On the other hand, in Q4 of 2023, the most residential house transactions occurred in areas like Umm Salal and Al Rayyan.
Additionally, the sector saw 114 sales of residential buildings last year, representing a 31% YoY decline in volume and a 19% annual decrease in value to QR1.4 billion.
Nonetheless, when comparing the same period in 2022 to 2023, The Pearl Qatar and Al Qassar experienced increases in transaction values and volume of 82% and 44%, respectively.
According to ValuStrat’s Q4 2023 report, the median monthly rental value of a residential unit in Qatar decreased 7.4% from the same period the previous year, but it remained stable every quarter.
“Apartments in Qatar are being leased at a median rate of QR6,250 per month, depicting stability every quarter but declining 7.5 percent annually,” the report said.
One-bedroom apartments rented for an average of QR5,750 per month, two-bedroom apartments for QR6,750, and three-bedroom apartments for QR8,250.
To promote transparency in the industry, the Ministry of Municipality also introduced the first phase of the Qatar Real Estate Platform last year, which includes 80 indicators.