Qatar’s strong pursuit of an agenda for economic diversification has created a number of profitable opportunities.
Following the implementation of Law No. 16 of 2018, which increased the number of sites where non-Qataris could purchase real estate, the residential sales market in Qatar has expanded since 2019.
The Real Estate Regulatory Authority (Aqarat), which was established in support of this law, seeks to create a controlled environment where residents, nationals, and foreign investors can access real estate investment opportunities.
According to Cushman & Wakefield’s Q3 2024 Real Estate Market Review, despite the sales market’s notable expansion, owner-occupants make up the majority of buyers, many of whom are looking to take advantage of the residency benefits that Qatar offers real estate owners.
Sales have decreased over the last 24 months after a brief spike in activity following the new law’s implementation in 2019. The Planning and Statistics Authority said that 923 residential real estate transactions had place in the first seven months of 2024. Although this represented a 14.7% increase from 2023, further sales volumes will be need to meet the new supply that will soon be available in Lusail Marina, Qetaifan Islands, Lusail Waterfront, and Gewan Island.
Residential rents have been comparatively steady in recent months, with a summer slowdown followed by a rise in activity in late August and September, which coincides with the start of the school year, according to the real estate consulting business.
The majority of Pearl Island’s districts including Lusail’s Marina sector continue to have strong occupancy rates, particularly in high-end structures. Residents moving within Qatar and a perceived return to more value in the market after a jump in rentals ahead of the World Cup have combined to create a strong demand for flats in prime areas.
“Higher vacancy rates are more evident in locations such as Fox Hills and Al Erkiyah in Lusail, where new supply continues to be delivered. The increasing supply of apartments in major masterplanned communities to the south of Doha and in Al Wakra, including Madinatna and Al Janoub Gardens are putting pressure on occupancy rates in the secondary market. As a result, while prime residential rents are likely to remain stable in the short term, we may see downward pressure on rents and further rental incentives in many other locations in the coming months,” the report noted.
“Occupancy rates in Doha’s villa compounds remain high, with some developments within easy reach of West Bay now full and subject to waiting lists from prospective new tenants. Rents remain generally stable; however, in some developments we expect to see rental growth in the coming months,” it added.
