The real estate residential market in Qatar is booming and witnessing growth due to high demand. The residential supply in the country was estimated at 308,000 units with the addition of 700 units during the first quarter (Q1) of the current year according to according to a recent report by ValuStrat.
“Two residential projects in The Pearl including a tower, and seven apartment buildings in Lusail, were completed adding 600 apartments. Also, Ezdan Real Estate has announced the launch of 4,000 units across eight compounds in Al Wakrah municipality during 2022. Residential stock in Qatar was estimated at 308,000 units with the addition of 700 during Q1, 2022,” the first quarter report said.
“Barwa Real Estate announced the lease of the Madinatna project, comprising 6,780 apartments in Al Wukair to the Supreme Committee for six months during this year. Qetaifan Island North launched the sale of phase 3, consisting of 40 residential villa plots and Dar Al Arkan, a Saudi developer, has launched Les Vagues residences (70 apartments) in Qetaifan Island North to start development post Q2, 2022,” it added.
The housing market in Qatar has been showing the signs of progress as the demand for apartments and villas have risen. Rise in the activities related to FIFA World Cup Qatar 2022 is boosting demand in Qatar’s real estate market.
In terms of residential sales, the real estate consulting firm report of Q1 stated, “The volume of transactions contracted 14.8 percent compared to Q1, 2021 but grew 12.5 percent quarter on quarter (QoQ). The median transacted ticket size for houses was QR2.6m, falling 3.6 percent QoQ and 2.5 percent over one year.”
Muaither, Al Wakrah and Al Khor had the highest volume of transactions of residential houses during Q1, 2022. 62 multi-unit residential building transactions were recorded in Q1 2022, with 50 percent concentrated in Al Waab, Umm Ghuwailina and Fereej Bin Dirham. While the volume and value of transactions in The Pearl and Al Qassar during Q1, 2022 declined 37 percent and 47 percent annually, respectively.
About residential performance the report further said, the median monthly asking rent of residential units was estimated at QR9,000, recording a growth of 3.3 percent QoQ, and 2.5 percent over one year. Compared to Q4, 2021, the median rent listed for apartments increased by 3.8 percent. The median asking rent for villas rose marginally by 0.6 percent quarterly.
Residential occupancy has been estimated to have reached 80 percent, propelled by short-long term leases by the Supreme Committee for Delivery and Legacy for World Cup 2022 and pick-up in demand from companies looking for staff accommodation. Anecdotal evidence suggests that hospitality, retail and construction sectors are the main drivers of growth in leasing activity, the report noted.
