Qatari realty rental market sees demand outstripping supply

Doha: The latest Qatar Real Estate Market Trends Report from Property Finder has identified a major uplift in rental demand in the first half of the year, which sees demand outstripping supply for the first time, while investments in apartments reached an all-time high.

Now in its 8th edition, the report includes key market insights from 16 local sector experts. 

The report showcases how the limited supply has dictated price increases across all areas and all unit types, with Doha recording an H1 year-on-year (Y-o-Y) uplift of 23 percent in average rental unit pricing and Al Khor witnessing a 38 percent price rise over the same period. This demand shift is a result of Qatar’s imminent hosting of the 2022 FIFA World Cup.

However, the report says the price rises are expected to be temporary, and anticipates demand to slightly decrease next year, creating “a more stable price index for rental units.” Currently, demand for apartments – particularly short-term and serviced units – continues to rise. 

Qatar’s residential stock has been estimated at 308,000 units with 700 units being added during Q1,2022, particularly in The Pearl and Lusail.  Occupancy of residential units has been reported at 80 percent, mainly due to demand for leases by the Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup, as well as companies looking for staff accommodation. 

Qatar’s sales market continues to gain traction, with the Ministry of Justice’s Quarterly Real Estate Bulletin citing 1,251 real estate sale transactions in the first quarter of the year totaling QR4,859,712,958. The report attributes sales demand to Qatar’s new foreign property ownership, and to investments laws and their inherent advantages as well as to an increase in the areas that foreigners are now allowed to invest in. 

“With Qatar being on the forefront of one of the world’s most popular sporting events, investors and first-time buyers are now more confident in investing in the market. The Ministry of Justice is also taking the necessary steps in creating a more transparent market, which will open the doors for even more investment in the near future,” said the report.

Sales listings for Doha during H1, 2022 on Property Finder Qatar’s website jumped 14 percent Y-o-Y, which resulted in a 27 percent increase per sqm in the advertised average price while those for Lusail rose 7 percent per sqm over the same time frame. 

In the first half of 2022, rental rises for Apartments were recorded for almost all areas in Qatar. The Al Hilal and Al Rayyan areas recorded H1 Y-o-Y price increases from QR3,325 to QR4,500 and QR6,500 to QR9,000 respectively due to new, higher priced stock entries. Some of the highest price increases were recorded in the Marina District, from QR9,000 to QR12,750 in line with increased demand for Lusail. However prices in Corniche Road and Fereej Bin Mahmoud saw prices dip slightly over the same time frame.

For Villas, almost all locations recorded H1 Y-o-Y price increases with Al Aziziyah, Al Maamoura and Umm Salal Mohammad witnessing the highest rises due to new, higher price stock entering the market. Stock continues to rise in Abu Hamour with listings for the area jumping by 85 percent in an H1 Y-o-Y comparison.  An increase in stock has been seen in Al Hilal where prices rose 75 percent over the comparative period as a direct result of H1 completion handovers.