The Rising Appeal of Hotel Apartments in Qatar’s Rental Market
Qatar property renters are increasingly finding value in hotels over standard apartments, as noted by the property portal hapondo.
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The hotel apartments have been increasingly rising, with these accommodations recording a higher occupancy rate at the end of 2023 compared to December 2022. The shift towards the convenience and affordability of living in serviced apartments is evident, with deluxe hotel apartments witnessing their average occupancy increase from 60% in December 2022 to 76% in December 2023.
Similarly, occupancy rates for standard hotel apartments rose from 52% to 73% during the same period, as per data from Qatar’s Planning and Statistics Authority (PSA).
The Appeal of Hotel Apartments
This positive trend towards hotel living can be attributed to the competitive pricing strategies adopted by hotel apartments, aimed at capturing a larger segment of the traditional tenant market.
Hapondo’s Qatar Property Report Q4 2023 reveals that the median rent for one-bedroom (1BR) apartments and hotel apartments in areas such as Al Sadd and Al Mansoura had a narrow difference, with premiums of 13.3% and 7.1%, respectively.
This pricing strategy means that a tenant paying a median monthly rent of QR7,000 ($1,920) in Al Mansoura could opt for a hotel apartment with an additional QR500 ($137). Moreover, the report highlighted that hotel apartments in neighbourhoods like Salata, Umm Ghuwailina, and Old Airport were already more affordable than regular apartments in Q4 2023. The affordability and additional perks such as better location, superior services, and amenities make hotel apartments a compelling choice for many renters.
In central business districts like Lusail’s Marina District, the premium for hotel apartments remains significantly higher compared to traditional apartments, 42% for a 1BR and 34% for a 2BR unit.
Despite this, hapondo forecasts that hotels facing occupancy challenges will continue to target the residential market in an effort to enhance their business performance in 2024. The overall hotel occupancy rate in Qatar as of December 2023 stood at 72%, with five-star and four-star hotels achieving 67% and 75% occupancy rates, respectively, according to the PSA. This indicates a well-balanced demand across various types of accommodations, showcasing the dynamic nature of Qatar’s real estate landscape.
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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
