Doha: The market for apartments in Qatar is benefitting from the surge in the number of expatriate employees which landlords hope to capitalise according to market research.
According to global property consultancy Knight Frank’s bi-annual Qatar Real Estate Market Review apartment rents in Doha have recorded a 22 percent jump.
Partner – Head of Middle East Research Faisal Durrani said: “The prime residential leasing market for apartments for instance has seen monthly rents grow by 22 percent over the last 12 months to an average of about QR13,100, with three-bedroom apartments at The Pearl commanding the highest lease rates.
“We feel this is mainly linked to the influx of new expatriate employees as Covid-restrictions abate, but also landlords hoping to capitalise on any shortage in hotel rooms” Durrani said.
However, in the sales market, Knight Frank reports that transactional volumes have slipped by 40 percent over the last 12-months and attributes this to sharp price increases.
Partner – Head of Qatar office Adam Stewart said: “There is a strong air of confidence prevailing in Qatar at the moment. Many sellers have been pushing up asking residential prices for several months, but we may have crossed a price threshold that is considered both sensible and achievable. Clearly there are other factors at play too, such as rising interest and mortgage rates, which are dampening demand as well.” Prime values for apartments have breached QR14,000 psm, while villas cost a little over QR7,100 psm, an increase of 3 percent on this time last year, according to Knight Frank’s analysis.
In the office market, average Grade A rents have fallen by 6 percent between Q3 2021 and Q3 2022.
Stewart said: “The office market is going through a significant shift, with demand being effectively moved away from West Bay to Lusail as authorities push for public-sector linked entities to relocate to the latter. Average lease rates in Lusail – c. QR90 psm – are cheaper than West Bay, which adds to the appeal.
What this means however is West Bay is inevitably likely to experience downward pressure on rents”.
Knight Frank said, new occupiers continue to arrive, especially at Qatar’s two freezones - Ras Bufontas and Umm Al Houl – with Google, BM Cyber, Invent Solutions, Thales, and Macallan among the latest to lease offices.
Elsewhere, in the retail market, annual lease rates are holding steady at an average of QR224 psm.
Retailers have also begun to broaden their offerings by including additional F&B, leisure, and lifestyle components into their projects to mitigate the effects of the ever-expanding e-commerce sector and increase consumer focus on experiential retail.
“The retail scene is getting increasingly competitive. As e-commerce penetration expands and consumer behaviour and expectations evolve, traditional shops face challenging market conditions. As a result, retailers are extending their online presence to sustain and grow their customer base”, concluded Durrani.
