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 years. 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 availability. 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 Courtesy: http://dtzqatar.com
October 11, 2017 TO October 11, 2017
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