Qatar: Housing market key driver for realty growth in 2024
In particular, the residential sector saw improved performance in larger, high-end units in select areas. The ValuStrat Price Index (VPI) showed minimal fluctuations, further reflecting the market's stability. Villas and apartments maintained their value, solidifying their reputation as reliable investment options.
In Q1 2024, Qatar's residential stock was estimated at 394,000 units, comprising approximately 148,000 villas and 246,000 apartments, with Census 2020 data serving as the base. The volume of transactions saw a decline of 34 percent compared to the previous quarter. However, the median transaction price for residential units rose by 3.7 percent Quarter-over-Quarter (QoQ) to QR2.8m, remaining stable year-over-year (YoY). Doha and Al Rayyan recorded the highest transaction volumes for residential houses.
In terms of rental activity, the median monthly rental value of residential units decreased by 3.6 percent QoQ and 6 percent compared to the previous year. The median leasing rate for apartments dropped by 4 percent quarterly and 6.3 percent YoY, while the villa sub-market saw a more moderate decline of 1 percent QoQ and 4 percent YoY.
The fourth quarter saw a remarkable recovery, with transactions up 25 percent year-over-year and a striking 168 percent increase in value, signaling strong buyer interest as favorable conditions took hold. In the office sector, there was a subtle shift in momentum. Grade A offices in West Bay and Lusail saw higher occupancy, reflecting their continued appeal, while secondary locations struggled with lower occupancy rates and declining rents. Nevertheless, office rents across the city remained steady throughout the year, underscoring their sustained demand.
Qatar's total office stock was estimated at 7.1 million square meters (sq m) of Gross Leasable Area (GLA). An additional 394,000 sq m of office space is expected to be completed by 2025. Office rents saw a decline of 1.5 percent on a quarterly basis and a 5.7 percent decrease YoY, reaching QR66 per sq m per month.
On the retail front, performance was mixed. Malls and street retail in Doha experienced slight quarterly declines, while retail outside the city showed greater stability, with consistent demand throughout the year.
Qatar's total stock of organised retail space amounted to 2.4 million square meters (sq m) of Gross Leasable Area (GLA), with the addition of Aventura Mall (11,000 sq m GLA) during the quarter.
The median monthly rent for shopping centers decreased to QR200 per sq m, reflecting a 4.8 percent decline on a quarterly basis and a 7 percent reduction compared to Q1 2022. Meanwhile, the median monthly asking rent for street retail in Doha remained stable at QR154 per sq m QoQ but showed a 3.8 percent decrease year-over-year. For street retail outside Doha, the median rent was QR146 per sq m, down 1.4 percent over the last two quarters.
According to the National Planning Council, Qatar's real GDP grew by 1.5 percent YoY and 2.8 percent QoQ in Q1 2024, reaching QR175.3bn. The NPC also reported a Consumer Price Index of 106.7 points, reflecting a 0.9 percent increase YoY, however a 1.4 percent decrease month-over-month.
Industry leaders expressed a 'cautiously optimistic' outlook for 2025, stating that although the market has shown consistent stability in recent quarters, early indicators of improvement in key areas suggest that growth may continue across various real estate sectors.
© Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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