Market Trends of Qatar Condominium and Apartment Industry
This section covers the major market trends shaping the Qatar Condominium & Apartment market according to our research experts:
Increase in residential sales as purchasers take advantage of residency permit benefits
- Following the passage of Law No. 16 of 2018 to extend freehold zones, Cabinet Resolution No. (28) of 2020 established the regions in which non-Qataris may own real estate. The formalization of ownership regulations has increased demand for real estate in Qatar from non-Qataris. The residential leasing market in Qatar has also experienced a noticeable change in recent months as demand associated with the hosting of the FIFA World Cup emerges. Over the past year, rental levels stabilized after five years of decline.
- As COVID-19 restrictions ease globally and international recruitment re-commences, we are witnessing demand from new residents. Semi-furnished one-bedroom apartments in prime districts such as The Pearl-Qatar typically range from QAR 8,500 (USD 2,334.53) per month to QAR 11,500 (USD 3,158.47) per month, while one-bed apartments in areas such as Al Sadd are available for between QAR 4,500 (USD 1,235.92) and QAR 7,000 (USD 1,992) per month. Monthly rents in one-bedroom in older buildings in central Doha range from QAR 3,000 (USD 823.95) to QAR 5,000 (USD 1,373.25).
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Residential rents continue to increase as available accommodation is at a premium
- The rental index fell by 0.4 per cent in the first and second quarters of 2021, compared to 3.7 per cent in the third and fourth quarters of 2020. During the same time (Q1 and Q2) in 2020, there was a 2.7 per cent decrease. Tenant migration has increased significantly in the recent two quarters, i.e., Q1 and Q2 2021.
- The spike in demand and restrictions in supply has seen rents in Qatar increase by more than 30% for long terms leases; however, recent evidence indicates that the upward pressure on rental levels may be easing. Typical two-bedroom, semi-furnished apartments in Porto Arabia, are currently leasing for QAR 13,000 (USD 3,570.45) to QAR 15,000 (USD 4,119.75) per month, while this is expected to fall again in 2023 when supply increases and demand eases.
