According to a recent report by leading international consulting group, ValuStrat the Qatari real estate residential market has received a significant boost due to high demand with 308,000 residential units present in the market with 700 more units being added in the first quarter (Q1) of 2022.
The ValuStrat report for Q1 states that, “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.”
“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,” the report further explains.
Qatar’s housing market has been showing progress as the demand for apartments and villas is witnessing a steady rise supported by an increase in activities related to FIFA World Cup Qatar 2022.
Discussing the residential sales, the ValuStrat report remarks that, “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.”
The highest volume of transactions of residential houses during Q1, 2022 were conducted in Muaither, Al Wakrah and Al Khor.
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.
The report added that, the median monthly asking rent of residential units was estimated at $2,472 (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 a pick-up in demand from companies looking for staff accommodation.
The report pointed out that the hospitality, retail and construction sectors are apparently considered the primary drivers of growth in leasing activity.