The Qatar real estate sector was stable in previous quarter, tourism thrives
The Qatar real estate sector
remained stable in Q3 2024, according to the latest review report from ValuStrat.
The report analyses the residential, commercial, and hospitality sectors and highlights resilience and strategic growth opportunities for investors.
Anum Hasan, Head of Research, Qatar, said the third quarter indicated continued stability across Qatar’s real estate market.
Qatar real estate
While some high-end regions experienced increased rental rates for larger bedroom units, the primary observation is that the market remained notably steady throughout the period.
The ValuStrat Price Index held consistent with the prior quarter at 96.6 points and showed no significant annual shift. Benchmarked to a base of 100 points set in Q1 2021, the apartment index registered at 97.5 points and villas at 96.3 points, with valuation prices in both categories showing no quarterly or yearly fluctuations.
Mortgage transactions declined by 10 per cent QoQ and 8.5 per cent YoY. Similarly, sales transactions dropped by 18 per cent since the last quarter and 15 per cent compared to last year.
Additionally, aligning with the US Federal Reserve, the Qatar Central Bank reduced the interest rate by 55 basis points. These concurrent changes could suggest that buyers may be holding off on purchases in anticipation of a more favorable rate decrease.
The office sector showed consistent performance every quarter, reflecting no notable fluctuations. In the retail segment, the organized sector recorded a 2 per cent decline, while street retail observed a 1 per cent decrease.
Tourism rose by 25.6 per cent YoY, reaching 3.9m visitors, with hotel occupancy up by 23 per cent yearly. This growth is primarily driven by government-hosted local and international events taking advantage of the cooler months.
In the industrial sector, rental rates were stable quarterly, while temperature-controlled spaces saw a 2 per cent improvement compared to the same period last year.
She concludes that, in summary, while Q3 presented a stable real estate landscape, market signals suggest a measured outlook for the coming months, hinting at a mix of steady performance with selective areas of optimism.
