The company says the market has some positive indicators with Qatar expecting to have vaccinated up to 70-80% of the population by October, and with the 2022 FIFA World Cup approaching. “There is no shortage of investment and development in the country. The World Bank has forecast that Qatar’s economy will grow by 3% this year – a solid indication of post-pandemic recovery,” added Mrs. Hashem.
Property Finder Qatar says supply continues to increase in the market, with Valustrat reporting that approximately 4,900 units will be handed over in H2, 2021, with the majority of apartment units in Lusail, The Pearl, Al Dafna, Luqta, Umm Ghuwailina and New Doha. Moreover, new projects awarded in the first half of the year in The Pearl, Lusail and Al Khor will add an additional 575 units by 2024.
“Regulations being implemented by Qatar’s Ministry of Justice’s Real Estate Division are paving the way to a more transparent and regulated market, encouraging more foreign direct and local investment in an opportunistic market. This, coupled with new areas for non-Qatari ownership, is transitioning the market from tenant-to-buyer focused,” added Property Finder Qatar’s Country Manager.
Advertised prices on propertyfinder.qa, which may not necessarily reflect actual transacted prices, unveil the following trends:
A slight decrease in apartment rentals was recorded in the first half of 2021 compared to the same period last year. Prices are yet to fully recover from the effects of the pandemic, when prices were lowered to spur demand and attract new renters. Prices in areas such as Al Nasr and Al Sadd for instance, fell from QAR 7,000 to QAR 6,000. The addition of newer stock in areas closer to the city center has also seen landlords and owners shift strategy to offer budget friendly units.
The Pearl, which remains one of the country’s most popular areas, saw the advertised median price rise by QAR 500 in January – June this year compared to the same period last year. The number of www.propertyfinder.qa listings in Ain Khaled has more than doubled in that same period, indicating an influx of new stock, which increased the advertised median price from QAR 7,000 to QAR 8,000.
Villa rentals remain in very high demand across Qatar, but an influx of new units has decreased prices. Prices in Abu Hamour and Ain Khaled fell by QAR 1,000 in the first half of this year compared to H1 last year, while prices in Al Thumama fell from QAR 13,000 to QAR 11,000 over the same time period.
However, median advertised prices in areas such as Al Messila and Al Soudan, which offer modern, luxury units have increased. Landlords and owners are offering ‘grace periods’ and ‘free months’ incentives which could be behind price stagnation in areas such as Al Muntazah, Al Wakair and Al Muraikh.
With regulations shaping the market, and increased interest in property investment, sales have been on a steady incline since H2, 2020. However, the market has yet to find a steady pricing trend, and advertised prices fluctuated throughout H1, 2021.
When comparing H1, 2020 to H1, 2021, prices increased in a number of areas, such as Lusail City (from QAR 11,556 per sqm to QAR 12,132 per sqm), and West Bay (from QAR 10,778 per sqm to QAR 12,005 per sqm), mostly due to new high-rise units being handed over. Demand continues to increase in Lusail, which is becoming a top pick for apartment investors.
As new areas open up to foreign ownership, sales in these areas have risen, particularly for villas, and prices have yet to stabilize. West Bay Lagoon, with its luxury villas, recorded the most significant price increase between H1, 2020, and H1, 2021 ( from QAR 12,177 per sqm to QAR 14,375 per sqm). Al Duhail also recorded an advertised price increase over the same time frame, moving from QAR 7,794 per sqm to QAR 8,500 per sqm largely due to newer units going on sale. However, villas in Al Waab saw advertised prices fall from QAR 11,538 per sqm to QAR 9,825 per sqm.
© Press Release 2021