According to “hapondo,” the nation’s homegrown real estate portal, Qatar’s gross rental yield in Doha’s upscale apartment market, which includes West Bay, Lusail, and The Pearl, is still a healthy 6.6% in the last quarter of 2023.
According to analysts at the portal, Qatar is a desirable place to invest in the Gulf because the real estate market is showing signs of health.
According to the report, the Marina District in Lusail yielded 8.2 percent for one-bedroom apartments and 9.2 percent for two-bedroom apartments. Meanwhile, the yield on one-bedroom apartments in Qatar’s West Bay area was 7.6%, while the yield on two-bedroom apartments was 7.9%.
Conversely, the gross yield on one-bedroom apartments at The Pearl was 6.4 percent, and the yield on two-bedroom apartments was 6.1 percent.
But according to hapondo, West Bay and Fereej Bin Mahmoud are the most popular places for apartment seekers, followed by Pearl Island. The average apartment rent in Fox Hills, Lusail, decreased during the fourth quarter of 2023.
On Hapondo’s list, the most sought-after locations for villa rentals in Q4 2023 were Al Waab, Al Gharrafa, and Al Markhiya. The report stated that while median rents in Al Mamoura, Al Hilal, and Old Airport have increased somewhat, they decreased in Al Thumama, Al Waab, Al Gharrafa, and Ain Khaled in Q4.
The one-bedroom category’s median price for apartments for sale in Doha’s prime market did not change. The Pearl and Lusail had more reasonably priced studio apartment options available on the market.
The report said: “Residential property transactions have kept Qatar’s real estate sector busy and buoyant in 2023, with a significant part of the year’s trading volume driven by demand for homes. A year after the FIFA World Cup Qatar 2022, Qatar’s residential real estate sector has proven to be resilient amid speculations of a slowdown that is natural after hosting mega-events.”
Real estate transactions totaled QR16.7 billion last year, down from QR21.2 billion the year before. In 2023, the volume of mortgages fell by 31% to QR45.6 billion, as reported by the Ministry of Justice. Additionally, the Ministry announced that residential unit sales totaled QR2.75 billion, an 82% increase over QR1.51 billion in 2022. When compared to 2022, the average deal size per residential unit transaction increased by 26% to QR2.64 million last year.
According to the analysis published by Hapondo, houses, and villas accounted for about 56% of trading volume, while residential units made up the remaining 18%. Case in point. While the asset type of vacant land accounted for 37% of the volume of transactions, houses and villas constituted 82% of the land transactions.