Residential Real Estate Market in Qatar - Growth, Trends, and Forecast (2020 - 2025)

Residential Real Estate Market in Qatar is Segmented By Type(Condominiums, Villas And Others), Key Cities And Other Urban, Suburban And Rural Markets.

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

Less Than 14.56 %

Major Players:

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Market Overview

Qatar is one of the most vibrant economies in the Middle East. The high GDP growth, an influx of population supported by employment opportunities and government policies are some of the factors driving the growth of the residential real estate sector. By the end of 2019, Qatar's population is expected to cross 2.7 million. Assuming all projects are delivered on time, Qatar will comprise of hotel apartments, 300,000 residential units.

The potential market for residential sales has been further expanded by law no. 16 of 2018 implemented in 2019. The law allows non-Qatari to purchase apartments in Lusail, West Bay and Onaiza on a freehold title whereas earlier they had temporary holding rights.

Residential supply continues to increase throughout the market with the completion of new apartment buildings and villa compounds. A relative slowdown in new demand has seen residential rents continue to soften in most areas.

According to the latest data from the official source, the contribution of real estate activities to the country's GDP during the first quarter of 2019 fell 5.84 percent to QR 9.68 billion, compared to QR 10.28 billion in the fourth quarter of 2018.

The overall number of residential sales and the total value of transactions in Qatar in April and May 2019 decreased by 20% and 29% respectively compared to the corresponding months last year, whilst the average price per transaction has decreased by 10%. The pace of recovery is expected to improve in the medium term, amid ongoing investment ahead of World Cup 2022.

Qatar Tourism Authority has significantly increased visitor numbers year on year and rental levels have now reached an affordable level. Rental trends in residential estate vary based on the type of units. Apartment supply is likely to be dominated by small units (studios and one-beds). Rents in Doha foe Villas have stabilized after declining between 2016-2018. There has been an increase in occupancy rates for or prime, well-located compounds due to a flight to quality by tenants. Pipeline supply of compound villas is significantly lower than that of apartments, which may result in rental increases if demand for these rises.

Scope of the Report

The report provides key Insights into the Qatar Residential Real Estate market. It includes technological developments, trends, initiatives taken by the government in this sector. Also, the report sheds a light on the key trends in the market like factors driving the market what are the restraints to market growth and opportunities going forward. Additionally, the competitive landscape of the residential real estate market of Qatar is depicted through the profiles of key players active.

By Type
Condominiums
Villas
Others
By Key Cities
Doha
Al Wakrah
Al Rayyan
Umm Salal Muhammad

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Key Market Trends

Increasing Residential Units Supply in Qatar

There has been rapid growth in the range of towers, malls, gated communities and luxury villas coming onto the market. There is the opening of towers 6 and 7 in Viva Bahriya district in June 2019 including Towers 13 and 14 Viva Bahriya and Tower 21 in Porto Arabia in the coming year.

A mix of 1,700 apartments and villas were added in Q2 2019, bringing the total stock to 294,700 units as of quarter-end. Apartment supply consisted of 1,500 units from delivered projects in The Pearl, Lusail, Fereej Bin Mahmoud, Old Ghanim, Fereej Abdul Aziz, Musheireb and Al Dafna. Completion of villas and compounds in Al Kheesa, Al Wajba, Umm Salal Ali and The Pearl added 200 new properties to existing stock.

In Abraj Quartier, five residential towers are about to complete delivering more than 2,000 units in total. The residents are also attracted to Lusail’s Marina District as its opening the first tower for the occupation which will, in turn, favor the growth of residential real estate activity in the coming years.

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Residential Rents Have Stabilised in Qatar

There has been an increase in leasing activities with rents been stabilized in Qatar after 2015. Villas compounds are enjoying strong occupancy rates in prime locations. Rental activity in Peral Qatar and Lusail has increased leading to various developments in the area. The Pearl Qatar area to have a large supply of one-bedroom units thus widening the gap between one-bedroom and larger bedroom units.

Up to 3 months of the rent-free period were common in Al Wakrah, Lusail, and Doha in the areas of Al Sadd, The Pearl, Mushiereb, New Doha, and many more. The rental level in Lusail is expected to increase over the next 12 months as more residents re-locate to the new city and additional amenities are delivered.

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Competitive Landscape

There is a huge competition between residential real estate companies in Qatar. The market is dominated by a few players. The sales proportion of residential real estate properties through the online market has consistently grown, owing to rising internet penetration, growing demand, incline in personal disposable incomes, surging middle-class youth population and opportunities by government infrastructure investments.

Foreign investment in Qatar’s residential real is going 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 – Qatar. Major real estate players in Qatar Residential real estate market are Barwa Real Estate Company, Ezdan Holdings, United Development Company, Mazaya Qatar.

Table Of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Insights

    1. 4.1 Current Economic Scenario and Consumer Sentiment

    2. 4.2 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights

    3. 4.3 Government Initatives, Regulatory Aspects for Residential Real Estate Sector

    4. 4.4 Insights on size of real estate lending and loan to value trends

    5. 4.5 Insights on interest rate regime for general economy, and real estate lending

    6. 4.6 Insights on rental yields in residential real estate segment

    7. 4.7 Insights on captial market penetration and REIT presence in residential real estate

    8. 4.8 Insights on affordable housing support provided by government and public-private partnerships

    9. 4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)

    10. 4.10 Market Dynamics

      1. 4.10.1 Drivers

      2. 4.10.2 Restraints

      3. 4.10.3 Opportunities

      4. 4.10.4 Challenges

  5. 5. Market Segmentation

    1. 5.1 By Type

      1. 5.1.1 Condominiums

      2. 5.1.2 Villas

      3. 5.1.3 Others

    2. 5.2 By Key Cities

      1. 5.2.1 Doha

      2. 5.2.2 Al Wakrah

      3. 5.2.3 Al Rayyan

      4. 5.2.4 Umm Salal Muhammad

  6. 6. Competitve Landscape

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Al Mana Real Estate

      2. 6.2.2 United Development Company

      3. 6.2.3 Qatari Diar Real Estate Company

      4. 6.2.4 Ezdan Holding Group

      5. 6.2.5 Barwa Real Estate Group

      6. 6.2.6 Hantawi Group

      7. 6.2.7 Sahara Group

      8. 6.2.8 Retaj Real Estate

      9. 6.2.9 Al Asmakh Real Estate

      10. 6.2.10 MD Properties

      11. 6.2.11 AL Mal Holdings

      12. 6.2.12 Colliers International

    3. *List Not Exhaustive
  7. 7. Future of the Market and Analyst Recommendations

  8. 8. Investment Analysis of the Market

  9. 9. Disclaimer

  10. 10. About Us

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