Qatar’s housing market witnesses a positive momentum with numerous projects lined up

Qatar's housing market is gaining traction, with multiple developments planned since the first quarter of the year. According to ValuStrat, roughly 1,200 units were added during Q1 2023, bringing the total residential stock to 336,440 units. These units are made up of about 42% villas and 58% flats.

Some major projects completed include The Grand Zone at the Mall of Qatar, which presently has 1,023 apartments, Al Darwish Residential Tower in West Bay, which has 160 flats, and a residential block with 150 units in Lusail City's Waterfront District.

Meanwhile, sales for La Mer Villas on Qetaifan Island North's 71 units and Blossom Residential Tower on Al Erkhyah Lusail's 112 flats have begun. According to the research, it is expected to carry out projects in the residential industry this year, with around 11,700 units in the pipeline, 52 percent of which will be constructed in Lusail and The Pearl.

The amount of transactions increased by 9.6 percent quarter on quarter, but decreased by 36.4 percent when compared to Q1 2022, as per ValuStrat. The median ticket size for residential units was QR2.8m, representing a quarterly decrease of 1.8 percent but an annual increase of 7.6 percent.

During the first quarter of the year, Al Khor, Muaither, and Umm Karn had the largest amount of residential housing transactions. While the developments continued to have a good influence after FIFA, the majority of the transaction volume was made up of 43 deals for residential units in places such as Old Airport, Fereej Abdul Aziz, and Al Mansoura.

However, according to the research, the number and value of transactions at both The Pearl Qatar and Al Qassar declined by 30% and 17% year on year during the first three months of the year. The median asking residential rent fell by 5.1 percent quarterly to QR9,250, but is up 3 percent from the listed price in the same time in 2022.

According to ValuStrat, the flat submarket has continued to undergo market corrections, with the median asking rent falling by 5.4 percent quarter over quarter. However, the average advertised rentals for apartments in financial areas such as Lusail and West Bay saw the greatest quarterly depreciation of 8% and 9%, respectively.

Despite a quarterly decline in asking rates for apartments in Lusail, West Bay, and The Pearl, median rentals in these locations are still 11 percent higher on average than in the first quarter of 2022. The average stated rentals of villas in Al Muraikh, Al Wakrah, and Abu Hamour increased by 4% quarter over quarter, according to the survey. As the huge athletic event, FIFA World Cup Qatar 2022, came to an end last year, short-term Eskan lease contracts ended, resulting in an increase in vacancies in the country's residential sector.