DOHA – Doha’s residential sector registered significant improvements in rents at the end of Q2 after a sluggish performance in the first quarter of the year, says Qatar-based online real estate platform hapondo.

According to hapondo’s latest analysis, several key Doha downtown neighborhoods saw stable 1-bedroom apartment rents and an even better 2-bedroom market in Q2, while villa rents increased faster in the latest quarter after a promising start in Q1.

Ahmad Al-Khanji, CEO and Co-Founder of hapondo said: “We saw a much more vibrant residential market in Q2 with rents increasing and favoring apartments in the downtown areas, the two-bedroom apartment market, and the villa market, in general.”

The average rent in the 1BR market rose in Fereej Bin Mahmoud (4.8%), Musheireb (6.6%), Old Airport (7.3%), and Al Mansoura (2.5%), while the market in Al Sadd, Najma, and Doha Jadeed remained stable.

In the 2BR apartment category, the average rent increased in Najma (3.9%), Umm Ghuwailina (4.2%), Fereej Bin Mahmoud (4.4%), and Musheireb (2.2%), while it remained stable in Doha Jadeed and Old Airport.

Fox Hills shows stability

Although rents of the 1BR category in the prime neighborhoods (West Bay, Marina, The Pearl, and Fox Hills) faced downward pressure, 2BR rents were marked by either stability or marginal growth.

Interestingly, Fox Hills showed green shoots after several consecutive quarters of falling rents. The average 2BR rent in Fox Hills grew by 1.7%, while the average 1BR rent increased by a marginal 0.5%. The projected gross rental yield in Fox Hills increased slightly from 6.4% in Q1 to 6.5% in Q2.

Overall, the gross apartment rental yields in the prime markets remain considerable. According to hapondo’s data, West Bay offered the highest 1BR gross rental yield at 8.1% and was tied with Fox Hills in the 2BR category at 6.8% if one had bought and rented an apartment in Q2. Across Doha’s prime apartment market, gross rental yield averaged 6.3% in Q2.

Villa market

Meanwhile, the average rent per sqm of villas in prime neighborhoods (West Bay Lagoon, Legtaifiya, and The Pearl) rose by 2.2% and that of non-prime villas by 5.7%.

The Pearl registered a significant increase of 17.7% in the average rent per sqm, evidence of the demand in prime locations that have pushed up prices of properties listed in the market. Other neighborhoods that registered significant villa rental growth include Old Airport (14.2%), Al Thumama (5.9%), and Al Mamoura (4.4%).