Doha: The total number of sales in Qatar’s residential property market has climbed by 12.6% to 867 deals during Q3, while the total value of sales over between July and September grew to QR3.6bn, equating to a 12.8% year-on-year increase according to global property consultancy Knight Frank’s Autumn 2024 Qatar Real Estate Market Review.
Faisal Durrani, Partner – Head of Research, MENA, said: “Residential values in Qatar remain in a state of decline following the ‘World Cup boost’, with average prices for apartments and villas retreating by 6.6% and 6.4% respectively.
Prime locations are however bucking this trend, with The Waterfront and The Pearl, for instance, showing an increase in prices between Q3 2023 and Q3 2024. Despite this, The Pearl remains a preferred location for high-income residents.
“The improvement in the total number and value of deals hints at a possible turning point for the market, with the luxury end of the market attracting the most attention and registering the strongest price growth, however the mid-market price segment appears to remain over supplied, as evidenced by the fall in prices in locations such as Al Kheesa (-10%) and Al Wakrah (-5%) over the last 12-months”.
Knight Frank highlights that a key risk to the market is the ongoing trickle of new supply, particularly in the mid-market segment. Qatar has 394,000 homes today, but Knight Frank forecasts this will rise further to 408,000 by the end of 2026.
Luxury developments such as the Four Seasons Resort and Residences at The Pearl Island (161 units) by Al Mirqab Real Estate and The Grove (293 units) by JMJ Properties have seen rapid sales since coming to market, according to Knight Frank.
In Doha, Abu Hamour remains the priciest neighbourhood for villa purchases at QR8,609 psm, whereas Al Wakair is among the most budget-friendly areas, with prices averaging QR5,757 psm. Lusail’s Waterfront boasts the highest apartment sales prices nationwide, averaging QR14,364 psm.
In contrast, Fox Hills offers more affordable options within Lusail, with apartment prices around QR10,560 psm.
In the leasing market, Knight Frank says, villa rents have declined by 7.5% over the last 12-months. In contrast, apartment rents have improved by 2.3% over the same period.
High-end areas like West Bay and Marina District have seen rental increases of 9.6% and 3.2%, respectively, driven by strong demand from expatriates and professionals seeking modern amenities and proximity to Doha’s primary commercial hubs.
In contrast, areas such as Fox Hills have faced a 5% decline in rents due to increased supply and competition amongst landlords.
Adam Stewart, Partner – Head of Qatar, explained: “The influx of new residential units, particularly in areas like Fox Hills and Al Erkiyah, has expanded tenant options, exerting downward pressure on occupancy rates and mid-market rental rates.
Newer, well-managed properties are attracting premium rents while older buildings in less desirable locations are experiencing declining demand.”
“As the market continues to evolve, these trends underline the importance of location, quality, and amenities in determining rental performance.” Stewart added: “The public sector remains a key driver of demand, with notable leases signed by government ministries and state-owned enterprises.
A prime example is the government’s lease of the World Trade Centre Tower on the Corniche, offering 58,000 sqm of Grade A office space.”
