The real estate research firm ValuStrat reports that strong mortgage activity in the second quarter of this year contributed to an increase in sales in Qatar’s real estate market.
Rents in the commercial, industrial, and residential sectors all decreased despite this spike in sales.
About 1,300 apartments and 120 villas were built between April and June. The Dubai-based company ValuStrat anticipates finishing about 9,000 units by year’s end and adding another 6,500 for the next year.
There was a 35% increase in residential sales from the previous quarter and a 15% increase year over year.
According to ValuStrat, a portion of this rise can be attributed to recent modifications made to Qatar’s mortgage laws since the second quarter of the previous year.
About one-third of all residential sales were in Al Rayyan, and more than a quarter were in Doha. Comparing the Pearl Island and Al Qassar districts to the previous quarter, there was a 28% decline in volume and a 33% drop in total transaction value.
The median amount that renters were asking for apartments decreased by almost 2% over the previous three months and by 6% annually. While slightly lower than in the same quarter of 2023, villa rentals were 1% lower than at the beginning of the year.
10,540 apartment leases were signed between April and June of this year, which is almost 20% fewer than the same period in 2023. According to ValuStrat, which used information from the Qatari Ministry of Municipality and Environment, the total number of villa leases was 4,075, a decrease of 10.5% from the prior year.
Rents for office space decreased 3.6% year over year but remained unchanged from the previous quarter. The rents for shopping centers decreased by 5% annually and by 2% every quarter.
In the hospitality industry, a notable rise in visitor numbers — more than 25% year over year — resulted in a 38% increase in revenue per available room when compared to the same quarter in 2023.
With initiatives like the $5.5 billion (Dh20 billion) Simaisma entertainment development, Qatar is increasing the allure of its tourism to visitors.
