Many owners are now willing to give their properties on rent at discounted rates as there is a perceived oversupply in the local market, it is learnt
05 March 2017 By Ramesh Mathew
Real estate agencies have reported a “marginal rise” in the number of enquiries for high-end properties over the past month compared to the previous weeks, industry sources have told Gulf Times.
A senior industry professional said companies like theirs were able to give more high-end properties, especially villa compounds, last month as there was a 10-12% fall in their rent.
Many owners are now willing to give their properties on rent at discounted rates as there is a perceived oversupply in the local market, it is learnt.
“Villas in some city neighbourhoods, which were earlier available for rents ranging from QR15,000 to QR16,000, are now being given for QR14,000. There has been an average fall of 10% in the rents of villas, many of which remained unoccupied for several months,” the professional said, noting that one of the reasons for the new enquiries was the beginning of the New Year.
Most of the clients taking possession of such villas are people who have been the country’s residents for a number of years, it was found. “In short, no new clients are making enquiries, generally,” he added.
Similar sentiments were echoed by some other realtors in Doha. According to them, there has been no significant rate cuts for buildings whose rents were below QR6,000 a few months ago, a fall of 8-10% has been witnessed for apartments that used to be rented out for QR8,000-QR10,000.
Some real estate agencies are also expecting a “steep fall” in residential rents in the coming months as more units become available for rent.
Meanwhile, industry sources reported a “not so encouraging” response to commercial properties at this juncture. “Most clients may be expecting a fall in rents in the coming months as a large number of properties are lying unoccupied,” said a property manager. Moreover, a number of new properties are coming up in some areas where there is already an oversupply, it is learnt.
The reductions offered by the management of some major properties last year may prompt others to give similar concessions, it is generally felt by potential customers.
© Gulf Times 2017