Qatar’s Real Estate Market Experiences a Dip to $4.6 Billion in Transactions
2 min
The Homegrown property portal, hapondo, has released its Qatar Property Report for Q4 2023, offering critical insights into the market’s performance over the last quarter and the year as a whole. The report highlights a downturn in transaction values, with mortgage volumes falling 31% in 2023 to QR45.6 billion ($12.5 billion).
Despite a general slowdown, the residential real estate sector in Qatar remained active in 2023, largely fueled by a steady demand for housing. Following the FIFA World Cup Qatar 2022, the residential market has shown resilience against anticipated post-event slowdowns, with investments in apartments continuing to rise.
The Ministry of Justice noted that sales of residential units reached QR2.75 billion ($754 million), an 82% increase from QR1.51 billion ($414 million) in 2022. The average transaction size for residential properties also saw a 26% increase, from QR2.1 million ($576,000) in 2022 to QR2.64 million ($724,000) in 2023.
Hapondo’s research indicates that villas and houses accounted for about 56% of the trading volume, with 18% for residential units. Despite 37% of the transaction volume being for vacant land, 82% of these land deals were aimed at developing villas and houses. The gross rental yield in Doha’s prime apartment markets, West Bay, Lusail, and The Pearl, stood at 6.6%, signaling a robust real estate sector. Hapondo suggests Qatar remains an appealing investment option in the Gulf.
Further findings include:
– Lusail’s Marina District recorded yields of 8% for 1-bedroom and 9.2% for 2-bedroom apartments, whereas West Bay saw yields of 7.6% (1BR) and 7.9% (2BR).
– Gross yields in The Pearl were 6.4% (1BR) and 6.1% (2BR) before service charges, with stable rents and strong rental demand.
– The Pearl, followed by West Bay and Fereej Bin Mahmoud, emerged as top choices for apartment seekers.
– In Lusail’s Fox Hills, average apartment rents faced downward pressure in Q4, offering tenants greater negotiation power.
– Al Waab, Al Gharrafa, and Al Markhiya topped the list for villa rental searches, with certain areas witnessing reduced median rents in Q4, while others saw an increase.
The report also highlights a trend of hotels offering competitive rates for long-stay guests in the 1-bedroom category, with some hotel apartments in areas like Salata, Umm Ghuwailina, and Old Airport being more affordable than regular apartments in Q4. The gap between hotel and apartment prices is narrower for 1-bedroom units but widens for 2-bedroom categories. Hapondo anticipates hotels will continue targeting apartment tenants in 2024 to boost occupancy rates.
Office space seekers in Q4 found a variety of options, from unfurnished spaces to business centers, with significant price differences based on the level of fitting. The retail sector in Lusail, particularly in Fox Hills, showed promising growth, with the opening of Velero Mall.
Looking ahead, Hapondo predicts that Qatar’s real estate future will be influenced by both local policies and regional dynamics, urging investors to align with sectors highlighted in the National Development Strategy 3. With Saudi Arabia and the UAE intensifying efforts to attract talent and investment, competition within the Gulf’s real estate market is expected to increase.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
A bold new corporate restructure to achieve its ambitious $27 billion portfolio goal
2 min
Omniyat, a distinguished name in Dubai’s ultra-luxury real estate sector, has embarked on a transformative journey by unveiling a new corporate structure under the newly formed Omniyat Group. This strategic move aims to unify and drive success across its various branded companies, setting an ambitious target of a AED100 billion ($27 billion) total group portfolio over the next five years.
This announcement signifies a pivotal moment for Omniyat Group, reaffirming its dedication to reshaping the real estate landscape not only in Dubai but across the broader region. As part of its growth strategy, Omniyat plans to significantly expand its footprint in the ultra-luxury real estate segment, aiming for a total portfolio value of AED50 billion.
Established in 2005 by Executive Chairman Mahdi Amjad, Omniyat was conceived with the vision of revolutionizing the Dubai property market through the creation of unique living experiences. The company has consistently elevated the standards in real estate, driven by a policy of strategic diversification that has enabled it to explore various market segments.
In line with this strategy, Omniyat Group is set to announce a new real estate company in Q3 2024. This new venture will be part of a commitment to invest AED50 billion in new real estate divisions targeting multiple market segments. This initiative underscores Omniyat’s ongoing commitment to understanding market demands and delivering on its bold vision to be “the best in class, in every class.”
By continuously evolving and adapting to market needs, Omniyat Group stands poised to lead the future of real estate in the region, setting new benchmarks in luxury and innovation.
Commenting on the launch, Amjad said: “Nineteen years ago, I founded Omniyat with a clear mission to achieve the unprecedented in Dubai’s real estate sector. A city of superlatives, Dubai is globally renowned for its remarkable story of progress and achievement, and we wanted to bring iconic projects to Dubai’s skyline that stood apart for their design, innovation, and artistry.”
“Encouraged by the UAE’s robust growth and long-term vision and inspired by the success of our ultra-luxury brand, I am establishing Omniyat Group to invest in other brands and companies to address different segments of the UAE’s strong growing real estate market with an uncompromising principle of ‘Best in class, in every class’ we address.”
“Today, Omniyat Group has been announced to drive forward our mission to elevate the people at the heart of our business and contribute to a better life and environment for all stakeholders, employees, clients, and their loved ones,” he stated.
“Guided by an unwavering commitment to excellence, we will continuously strive to raise standards and curate experiences that make life better, in every sector we engage in,” he added.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
