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The Qatari residential real estate market is expected to register a CAGR greater than 11.5% during the forecast period (2022 - 2027). COVID-19 has negatively impacted the Qatari residential real estate market. Many residential projects were delayed or canceled due to the COVID-19. Due to the COVID-19 outbreak and the subsequent collapse of global oil prices, the country's government requested the postponement of more than QAR 29.1 billion (USD 8 billion) in unawarded contracts on capital expenditure projects in April 2020. Qatar's economy is one of the most thriving in the Middle East. High GDP growth and population influx, aided by job opportunities and government legislation, are some of the drivers propelling the country's residential real estate market forward.
The high net worth of the ordinary Qatari inhabitant, both local and expatriate, has a considerable impact on the construction industry, increasing the demand for luxury and well-organized residential areas. The population growth rate, combined with a steady supply of expatriate workers, is expected to generate further demand in the medium to long term. Over the recent years, the Qatari government has adopted a series of legislative revisions aimed at preserving the rights of residential building investors in response to rising development activity in the industry. Qatar's expanding population, along with a strong demand base and high discretionary income levels, suggests that demand for residential real estate will likely continue to climb in the near future. Despite their wealth, the bulk of Qatar's expatriate population prefers to rent rather than buy. Tightened personal credit restrictions have exacerbated the problem of low homeownership.
UrbaCon Trading and Contracting (UCC) agreed to build two residential complexes in Al Wakra, Qatar, totaling more than QAR 5 billion (USD 1.37 billion). Al Wakra, a traditional fishing village, is currently Qatar's second-largest city and home to the 40,000-seat Al Janoub football stadium, designed by Zaha Hadid; Al Wakra will be a significant destination during the World Cup in 2022. Qatar expects that this will serve as a springboard for future expansion, with high-end homes at the center of the city's development. Qatar’s Namaa Doha Real Estate firm has broken ground on its 49 high-end villas projects in Giardino Village – The Pearl. Construction works on the residential project are progressing at a steady pace, with the project currently scheduled for completion in Q3 2022. The project will also offer investment opportunities at 49 standalone villas, with each villa comprising two levels, a basement, and a penthouse, in addition to a private pool and parking spaces.
Scope of the Report
Residential real estate is land that has been built for the purpose of allowing people to live there. It cannot be utilized for commercial or industrial reasons. It appears when someone purchases land designated for residential use, which becomes real property and contains a wide range of potential homes, from houses to houseboats, and neighborhoods ranging from the poorest slum to the wealthiest suburban development. A complete assessment of the Qatari residential real estate market includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments in the report. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Qatari residential real estate market is depicted through the profiles of active key players. The report also covers the impact of COVID–19 on the market and the future projections.
The Qatari Residential Real Estate Market is segmented Type (Apartments and Condominiums, Villas, and Landed Houses) and Key Cities (Doha, Al Wakrah, Al Rayyan, and Umm Salal Muhammad). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).
|Apartments and Condominiums|
|Villas and Landed Houses|
|By Key Cities|
Key Market Trends
Qatar’s Housing Market is Gradually Improving
Qatar's property market remains sluggish as the ongoing COVID-19 pandemic continues to wreak havoc on the country's economy and finances. Despite reducing demand, supply continues to expand, resulting in dropping residential property prices. With the building of 1,700 flats and villas in Q1 2021, the total housing stock was around 304,715 units. The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz provided 1,650 units from project handovers in Lusail (Fox Hills and Marina District), The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz.
Residential building contracts were given during the quarter in Lusail Waterfront, Marina, and Fox Hills, with 450 units expected by the end of 2022. For the remaining quarters of 2021, 6,300 units were maintained in the pipeline. For residential properties, the median transacted ticket size was QAR 2.7 million, up by 3.4% quarterly and 6.8% annually. When compared to the same period in 2020, housing transaction volumes fell by 3.3% quarterly but were 52.8% higher. Umm Garn had the most residential housing sales, and Fereej Al-Amir had the largest ticket size of all the locations. For residential buildings, 68 transactions were registered, with the biggest number of transactions occurring in Old Airport and Umm Ghuwailina. The number and value of transactions in The Pearl and West Bay Lagoon declined by 6.8% and 11.7% yearly in the first two months of 2021, respectively. Apartments in The Pearl sold for an average of QAR 16,000 per square meter.
In October 2021, the total number of properties sold increased by 2.8%, while the value of real estate sold increased by 28% over the previous year. By the end of 2022, 13,500 residential units are expected to be added to the Qatari market. This follows the addition of 580 residential units in the fourth quarter of 2021. Fifteen mixed-use buildings in The Pearl, apartment and mixed-use buildings in Qetifan North, 1,700 villas in Furjan Wadi Lusail, Al Yussum townhouses, 2 in Yasmeen City Lusail, and Milos apartment complex in Legtafiya are among the latest developments. Prices climbed in a number of places from H1 2020 to H1 2021, including Lusail City (from QAR 11,556 per sq. m to QAR 12,132 per sq. m) and West Bay (from QAR 10,778 per sq. m to QAR 12,005 per sq. m), owing to the completion of new high-rise units. Lusail is becoming a favorite choice for apartment investors, and demand continues to rise.
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Residential Rents Continue to Fall in Qatar, Increasing Occupancy Rate
Qatar's rental market has become more stable as a result of increased demand linked with hosting a worldwide event such as the FIFA World Cup in 2022. The median monthly asking rent for residential units fell 1.8% quarter-over-quarter and 5.7% Y-o-Y. Compared to apartment rents, which underwent dramatic declines during 2020, villa rents continue to decline slowly. Apartments had a median monthly asking rent of QAR 6,290, down by 1.9% quarterly and 6% annually. Three-bedroom apartments saw the greatest quarterly rent decreases, up to 5.3%. West Bay, Fereej Bin Mahmoud, and Al Mansoura saw the biggest quarterly rent cuts, ranging from 3.5% to 5%. The median monthly asking rent for villas was QAR 10,460, down by 1.2% quarter-on-quarter and 3.9% Y-o-Y. Rents for three-bedroom villas dropped the most in the quarter, by up to 2.8%. Rentals in Al Aziziya and Ain Khaled compounds fell by an estimated 3.3% from one quarter to the next. One-, two-, and three-bedroom apartments at The Pearl had average monthly asking rents of QAR 7,750, QAR 12,000, and QAR 15,000, respectively.
The demand for villa rentals in Qatar remains high, although prices have come down as a result of the influx of new units. In the first half of 2021, prices in Abu Hamour and Ain Khaled declined by QAR 1,000 compared to the first half of 2020, while prices in Al Thumama fell from QAR 13,000 to QAR 11,000 during the same time period. However, in regions like Al Messila and Al Soudan, where contemporary luxury units are available, median advertised prices have risen. In places like Al Muntazah, Al Wakair, and Al Muraikh, landlords and owners are offering 'grace periods' and 'free months' incentives, which could be the reason for price stagnation.
There is a huge competition between the residential real estate companies in Qatar. The market is dominated by a few players. The sales proportion of residential real estate properties through online channels has consistently grown, owing to the rising internet penetration, growing demand, increasing personal disposable incomes, surging middle-class youth population, and opportunities offered by government infrastructure investments.
Foreign investment in Qatar’s residential real estate market is estimated to increase in the coming years, as non-Qataris may invest in selected real estate projects, such as the West Bay Lagoon and The Pearl. Major real estate players in the market are Al Mana Real Estate, United Development Company, Qatari Diar Real Estate Company, Ezdan Holdings, and Barwa Real Estate Company.
April 2021: Qatari Diar's Chelsea Barracks was awarded LEED Platinum certification. Confirming the development as the most sustainable project in Europe and one of only 16 developments worldwide to receive this certificate.
June 2021: United Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl-Qatar and Gewan Island, won the “Luxury Lifestyle Award 2021” in the category of “Luxury High Rise Living” for Al Mutahidah Towers at The Pearl-Qatar. The remarkable new property at The Pearl-Qatar was selected among 28 projects in the same category by “Luxury Lifestyle Awards”, which is one of the first international accolades dedicated to recognizing luxury goods and services around the world for its credibility, uniqueness, innovation, and quality.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
2.1 Analysis Methodology
2.2 Research Phases
3. Executive Summary
4. Market Insights
4.1 Current Market Overview
4.2 Residential Real Estate Buying Trends, along with Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector
4.4 Insights into the Size of Real Estate Lending and Loan to Value Trends
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in the Residential Real Estate Sector
4.7 Insights into Capital Market Penetration and REIT Presence in the Residential Real Estate Sector
4.8 Insights into Affordable Housing Support provided by Government and Public-Private Partnerships
4.9 Insights into Technology and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
4.10 Impact of COVID-19 on the Market
5. Market Dynamics
5.4 Porter's Five Forces Analysis
6. Market Segmentation
6.1 By Type
6.1.1 Apartments and Condominiums
6.1.2 Villas and Landed Houses
6.2 By Key Cities
7. Competitve Landscape
*List Not Exhaustive
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Al Mouj Muscat
7.2.2 Al Raid Group
7.2.3 Wujha Real Estate
7.2.4 Al-Taher Group
7.2.5 Maysan Properties SAOC
7.2.6 Orascom Development Holding AG
7.2.7 Harbor Real Estate
7.2.8 Edara Real Estate LLC
7.2.10 Abu Malak Global Enterprises Muscat
7.2.11 Al Madina Real Estate Company Muscat
7.2.12 Better Homes
7.2.13 Coldwell Banker
7.2.14 Engel & Voelkers
7.2.15 Hilal Properties
7.2.16 Saraya Bandar Jissah*
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9.1 Marcroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
9.2 Key Production, Consumption, Export and Import Statistics of Construction Materials
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Frequently Asked Questions
What is the study period of this market?
The Qatar Residential Real Estate Market market is studied from 2018 - 2027.
What is the growth rate of Qatar Residential Real Estate Market ?
The Qatar Residential Real Estate Market is growing at a CAGR of >11.5% over the next 5 years.
Who are the key players in Qatar Residential Real Estate Market ?
Al Mana Real Estate, United Development Company, Qatari Diar Real Estate Company, Ezdan Holding Group, Barwa Real Estate are the major companies operating in Qatar Residential Real Estate Market .