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Residential Market Overview in Qatar
The residential market in Qatar has been driven by a rapidly
increasing population in recent years. The population
increased to 2,637,022 in February 2017, a 3.4% year on year
increase. This represents a slowdown in annual population
growth, which has typically been in excess of 7% in recent
Recent fiscal consolidation at government level, extensive
redundancy programmes, and an increased supply of new
buildings has seen vacancy levels increase throughout Doha.
This has resulted in a fall in quoted rents for the majority of
vacant apartments and villas over the past 12 months,
following a five year period of strong rental growth.
Rental levels in prime districts have remained largely stable in
recent months for one and three bedroom apartments, where
occupancy remains high; however, there has been a recent
softening of rents for two bedroom units, where there is greater
There have been a number of new residential buildings
completed in districts such as Umm Ghuwailina, Al Sadd, Bin
Mahmoud and Al Mirqab. These buildings have typically been
released to the market at the same rental levels as existing
properties although typically offer tenants higher quality
apartments and superior amenities.
A number large employers have recently reduced their housing
allowance as a cost saving measure. It is also increasingly
common for housing allowances to be provided rather than
employee housing. This has had an impact on the rents
achievable for compound villas; a market that had previously
been dominated by corporate leases.
In DTZ’s opinion it is unlikely that there will be a return to the
strong rental increase witnessed between 2011 and 2015, due
to the continuing development of new residential buildings, and
the lower demand from higher earning expatriate workers.
Demand is likely to remain strong for affordable
accommodation, underpinned largely by staff working in the
expanding service industry throughout Doha.
Activity in the residential sales investment market has reduced
since the peak of the market in 2015, due largely to reduced
confidence, both from investors and financial institutions.
Apartments in new buildings in The Pearl Qatar are still
typically quoting sales prices in excess of QAR17,000 per sq
m. Second hand freehold apartments have typically been
selling at between QAR12,500 and 15,000 per sq m
October 11, 2017 TO October 11, 2017
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