Qatar’s property market has not yet recovered from the impact of the coronavirus pandemic, with housing rents continuing to slide and sales prices fluctuating during the first half of 2021, according to the latest analysis by Property Finder Qatar.
The Gulf state is expected to see prices stabilising only in 2021, although investor and tenant demand for villas and apartments, is already picking up. Demand has been driven largely by low prices in the market.
“Qatar is expected to reach a stable pricing index in the coming year, despite the current price and supply fluctuations,” Property Finder Qatar said.
“The slowdown [caused by] the pandemic continues to significantly affect the market. However, sales transactions and rental deals are rising as investors and property buyers look to take advantage of lower market prices,” added said Afaf Hashem, country manager of Property Finder Qatar.
The Qatar economy is showing signs of recovery after a challenging year, with the World Bank forecasting a 3 percent growth for 2021. The country is expected to vaccinate up to 70 percent to 80 percent of its population next month and has high hopes for the upcoming 2022 FIFA World Cup.
“There is no shortage of investment and development in the country. The World Bank has forecast that Qatar’s economy will grow by 3 percent this year – a solid indication of post-pandemic recovery,” added Hashem.
During the first half of 2021, overall apartment and villa rents dropped compared to the same period last year, owing partly to the influx of new supply.
Apartment rents in areas such as Al Nasr and Al Sadd fell from 7,000 riyals to 6,000 riyals ($1,900) per month. However, in popular locations such as The Pearl, rents inched up by 500 riyals over the same period.
As for villas, locations such as Abu Hamour and Ain Khaled saw rents fall by 1,000 riyals in the first half of the year compared to the same period in 2020.
In other areas like Al Thumama, the declines were more significant.
As for sales, both the apartment and villa segments of the market saw increased sales activity during the first half of 2021.
However, Property Finder noted that prices have not yet stabilised.
(Writing by Cleofe Maceda; editing by Daniel Luiz )
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© ZAWYA 2021