Interest for homeownership in Qatar, which had a huge number of properties vacant a year ago, has skyrocketed in recent months, with inquiries for purchasing residential units flooding by 74% during the initial three months of the year, as indicated by Property Finder Qatar.
Sales listings for apartments and villas in the Gulf state have also increased by 33% and 60%, respectively, showing that supply is still not running out.
The rise in interest for property may have been helped by lesser costs, and also the easing of rules on non-Qatari property ownership, Property Finder provided in a statement.
Last October, it was said that Qatar would raise the number of places in which foreigners can gain property outright. Non-Qataris would be able to own a property as a whole of nine places, in comparison to just three before.
“There is a direct correlation and impact of the country’s new property ownership laws which were introduced late last year, as well as lowered prices in high-demand areas such as Al Erkyah City and West Bay,” Property Finder noted.
Excess supply
Qatar had constructed more homes before the pandemic in the prediction of huge interest during the 2022 FIFA World Cup season. However, the market lowered further during the onset of the COVID-19 crisis, as supply outrun demand, causing the double-digit fall in costs.
As per the ValuStrat, Qatar was already dealing with an excess supply of 80,000 homes in the middle of 2020 and was predicted to get an additional 7,250 finished units before the end of the year.
“Qatar is dealing with an oversupply of residential properties tied to the 2022 FIFA World Cup, which it is hosting… Prices [had been] down 26 percent since the beginning of 2016,” ValuStrat said in an earlier report.
Bigger homes required
Potential homeowners or buyers in Qatar are on the search for properties that provide them bigger spaces.
Searches for villas increase by 15% between the last quarter of 2020 and the first three months of 2021, provided by Property Finder.
“The addition of areas that allow for foreign real estate ownership has rejuvenated the villa sales market, especially since the majority of stock in areas prior to these laws included mostly apartments,” said Hashim.