Qatar Condominium and Apartment Market Size

Qatar Condominium & Apartment market Analysis

The size of the Qatar Condominium and Apartment Market is USD 2.48 billion in the current year and is anticipated to register a CAGR of over 3.11% during the forecast period. The market is driven by the huge demand for the residential estate from foreigners. Furthermore, the market is driven by the demand increase due to the recent FIFA world cup.

• The hosting of a FIFA World Cup usually results in a significant increase in demand for short-term rental accommodation in cities where stadiums are located, resulting in dramatic price increases-but the uplift to the sales market occurs over a long period. The short-term boost to the property market, such as the rental upswings experienced by Qatar and neighbouring Dubai, typically lasts only a few weeks and primarily affects properties located near the stadiums. The long-term impact of hosting one of the world's largest sporting events on residential real estate markets is more complicated to predict. The long-term effects of hosting the soccer tournament vary greatly from country to country and city to city.
• The residential real estate market has seen an increase in activity in 2022, which can be attributed to the increased demand generated by the World Cup. For the first time since 2015, we are seeing evidence of rental increases in Qatar; however, this increase is likely to be temporary, as demand is expected to fall in 2023. The commercial market has also seen an increase in activity, particularly in Lusail; however, rental levels are still being influenced by the market's general oversupply. Apartment rents are expected to rise further as availability becomes scarcer ahead of the World Cup. Landlords are increasingly likely to demand two-year contracts to capitalize on rental inflation and mitigate the impact of decreased demand in 2023.
• According to Property Finder, sales demand is attributed to Qatar's new foreign property ownership, investment laws and their inherent benefits, as well as an increase in the areas in which foreigners are now permitted to invest. The Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup, as well as companies looking for staff housing, have reported that 80 per cent of residential units are occupied. The Quarterly Real Estate Bulletin of the Ministry of Justice reported 1251 real estate sale transactions in the first quarter.