Qatar’s Real Estate Market Experiences a Dip to $4.6 Billion in Transactions
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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
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
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
