Rising real estate: Qatar’s property market poised for steady growth

According to the latest data from the Real Estate Registration Department of Qatar's Ministry of Justice, the total value of sales contracts in Qatar's real estate sector reached 1.043 billion Qatari Riyals (approximately $284.6 million USD) in December of last year. The data shows that 283 real estate transactions were recorded during the month, with the number of properties sold increasing by 12% compared to the previous month.

Overall, the Qatari real estate market has maintained a considerable degree of stability over the past year, with performance generally meeting expectations. While some sub-sectors experienced slight declines, the overall market remained steady. The report noted a minor recovery in the second half of the year, particularly in the residential market, where high-end residential units showed improved performance in specific areas.

Anum Hassan, Head of Research at Valustrat Qatar, a business consultancy, stated, "The outlook for 2025 reflects a cautious expectation. While the market has been stable in recent quarters, early signs of improvement in certain areas suggest that similar trends could emerge in other segments of the real estate market."

She added, "The supply pipeline is also limited across all sectors in 2025. We expect these trends to continue or intensify in the coming quarters of 2025. It is important to note that significant increases in average rents and occupancy rates may be difficult to achieve in the next two to three years due to the continued oversupply across all sectors. However, this is not the case for all sub-segments of every sector; some sub-asset classes are performing better, and we expect this trend to remain in 2025."

Here are some highlights from the report:

**Q1 2024 Highlights**

**Economy**

* According to data from the National Planning Council (NPC), Qatar's real GDP grew by 1.5% year-on-year and 2.8% quarter-on-quarter in Q1 2024, reaching 175.3 billion Qatari Riyals.

**Residential**

* The residential stock in Q1 2024 was estimated at 394,000 units, comprising approximately 148,000 villas and 246,000 apartments (based on the 2020 census).

* In Q1, the Qatar real estate market witnessed 236 mortgage transactions across all built property asset classes. The total sales value of mortgage transactions was 16.8 billion Qatari Riyals, an increase of 89% quarter-on-quarter and 36.8% year-on-year.

**Office**

* The total office stock is estimated at 7.1 million square meters of leasable area.

* An additional 394,000 square meters of leasable area is expected to be completed by 2025.

* Citywide office rents decreased by 1.5% quarter-on-quarter and 5.7% year-on-year, reaching 66 Qatari Riyals per square meter per month.

**Retail**

* The total stock of organized retail space in the Qatar real estate market is 2.4 million square meters of leasable area, with the addition of Aventura Mall (11,000 square meters of leasable area) this quarter.

**Tourism**

* The total number of international visitors exceeded 1.6 million, an increase of 40.1% year-on-year.

* 48% of international visitors were from Gulf Cooperation Council (GCC) countries, followed by Europe (23%) and other Asian countries (including Oceania) (15%).

**Hotel**

* According to the Qatar Tourism Authority, the total hotel stock is estimated at 39,715 rooms (74% hotel rooms and 36% hotel/serviced apartments).

* Notable hotel openings this quarter include Millennium Place (150 rooms), Rixos Premium Qetaifan Island North (378 rooms), and Riviera Rayhaan along Salwa Road (185 rooms).

* Hotel occupancy rates reached 75%, an increase of 38% year-on-year.

* The average daily rate (ADR) for five-star hotels was 645 Qatari Riyals, while the ADR for three- to four-star hotels ranged between 250 and 300 Qatari Riyals.

**Q2 2024**

**Economy**

* According to data from the National Planning Council (NPC), Qatar's real GDP grew by 0.8% year-on-year and 1% quarter-on-quarter in Q2 2024, reaching 177 billion Qatari Riyals.

* In June 2024, the Consumer Price Index (CPI) reached 107.5 points, a year-on-year increase of 1.7%. The housing and utilities index decreased by 3.2% year-on-year, reaching 94.4 points.

**Laws and Regulations**

* The Ministry of Justice confirmed Law No. 5 of 2024, which for the first time legalizes digital property registration in Qatar. The law aims to improve transparency in the country's real estate market.

**Residential**

* The residential stock in the Qatar real estate market in Q2 2024 was estimated at 396,000 units, with approximately 148,000 villas and 248,000 apartments. A total of 1,300 residential apartments were delivered this quarter.

* Doha recorded 26% of the total value of residential transactions, while Al Rayyan accounted for another 33%.

* According to the Ministry of Municipality and Environment, approximately 10,540 lease contracts were signed this quarter, a decrease of 19% year-on-year.

* In Q2 2024, the Qatar real estate market witnessed 253 mortgage transactions across all built property asset classes, a 10% increase year-on-year. The total value of mortgage transactions in Q2 2024 was 12.6 billion Qatari Riyals, an 11.7% decrease year-on-year.

**Office**

* The total office stock is estimated at over 7.2 million square meters of leasable area. Approximately 16,000 square meters of leasable area was added this quarter. An additional 11,000 square meters of leasable area is expected from projects in Lusail Commercial Boulevard and Fox Hills.

* An additional 313,000 square meters of leasable area is expected to be delivered by the end of 2024, with 80% located in Lusail. 90% of the supply under construction belongs to the Grade A category.

* Citywide office rents remained stable quarter-on-quarter but decreased by 3.6% year-on-year. West Bay saw a 1% decrease quarter-on-quarter, while office rents on Grand Hamad Avenue decreased by 3%.

**Retail**

* Retail stock remained unchanged at 2.5 million square meters of leasable area due to no significant additions this quarter.

* Average monthly rents in shopping centers decreased by 2% quarter-on-quarter and 5% compared to the same period last year.

**Tourism**

* The total number of international visitors exceeded 2.9 million, an increase of 26% year-on-year.

* 43% of international visitors were from GCC countries, while 19% and 23% were from other Asian and European countries, respectively.

**Hotel**

* The total hotel stock estimated by the Qatar Tourism Authority is 39,915 rooms (74% hotel rooms and 26% hotel/serviced apartments).

* The Ministry of Municipality and Environment announced the Simaisma project, a large entertainment area covering 8 million square meters. The project will include luxury resorts, amusement parks, residential villas, yacht clubs, marinas, golf courses, restaurants, and shops.

* Hotel occupancy rates increased by 29% compared to the same period last year, reaching 69%.

**Q3 2024**

* The average capital value of residential units was 7,095 Qatari Riyals per square meter. For apartments, this price was 10,287 Qatari Riyals per square meter, and for villas, the average capital value was 5,507 Qatari Riyals per square meter.

* The gross yield for residential units remained stable at 5.9%. The yield for apartment and villa units was 8.3% and 4.7%, respectively.

**Economy**

* According to data from the National Planning Council (NPC), Qatar's real GDP grew by 2% year-on-year in Q3 2024, reaching 180.2 billion Qatari Riyals.

**Laws and Regulations**

* Qatar issued Law No. 12 of 2024, which mandates the prioritization of employing Qatari nationals in the private sector and stipulates Qatarization plans, financial incentives, and penalties for non-compliance.

**Residential**

* The total residential stock in the Qatar real estate market in Q3 2024 was approximately 396,000 units, including 248,000 apartments and 148,000 villas. Approximately 410 housing units were delivered this quarter in the form of mid-rise residential buildings and detached villas.

* The volume of residential transactions decreased by 18% quarter-on-quarter and 15% year-on-year.

* Average monthly rents for residential apartments remained stable quarter-on-quarter but decreased by 4.7% year-on-year.

* The average monthly rental value for apartments was 6,000 Qatari Riyals, unchanged from the previous quarter but down 5.5% year-on-year.

* Average rents for villas increased by 1.1% quarter-on-quarter and remained stable compared to the same period last year. Rents in Duhail, Gharrafa, Waab, and Wakra saw slight increases compared to the previous quarter.

* Over 13,000 apartment lease contracts were signed in Q3 2024, a decrease of 7.4% year-on-year. New agreements accounted for 96% of total leases.

* In Q3 2024, the Qatar real estate market witnessed 227 mortgage transactions across all built property asset classes, an 8.5% decrease year-on-year. The total value of mortgage transactions reached 6.8 billion Qatari Riyals, a 7.9% increase compared to the same period last year.

**Office**

* Approximately 38,000 square meters of leasable area was added this quarter, with the completion of the Mercedes flagship commercial complex bringing the total stock to over 7.2 million square meters of leasable area.

* Citywide office rents averaged 66 Qatari Riyals per square meter, unchanged from the previous quarter but down 2.2% year-on-year.

* Nationwide office occupancy rates are estimated at 63%, with higher occupancy rates in prime locations compared to secondary areas.

**Retail**

* The total retail supply in the Qatar real estate market is 5.5 million square meters of leasable area. Organized retail space accounts for 2.5 million square meters of leasable area, while unorganized retail space accounts for 3 million square meters.

* Approximately 20,000 square meters of unorganized retail space was added in Q3 2024.

* Average monthly rents in shopping centers decreased by 2% quarter-on-quarter and 4% year-on-year in Q3 2024, reaching 185 Qatari Riyals per square meter.

**Tourism**

* As of Q3 2024, the total number of international visitors exceeded 3.9 million, an increase of 25.6% year-on-year.

* 44% of international visitors were from GCC countries, while 20% and 22% were from other Asian and European countries, respectively.

**Hotel**

* The total hotel stock estimated by the Qatar Tourism Authority is 40,053 rooms. 67% of the total stock consists of four- and five-star hotels, while 7.5% are classified as one- to three-star hotels.

* As of September, the average daily rate (ADR) was 430 Qatari Riyals, a 6% increase year-on-year. Meanwhile, revenue per available room (RevPAR) was 284 Qatari Riyals, a 30% increase.

* Hotel occupancy rates reached 66%, a 23% increase year-on-year.

**Q4 2024**

**Economy**

* According to the International Monetary Fund (IMF) forecast, Qatar is on track to achieve 2% GDP growth in Q4 2024, while maintaining a 1% growth in the Consumer Price Index.

* Qatar's Purchasing Managers' Index (PMI) increased by 1.7% in the last quarter of 2024, reaching 52.9, indicating continued expansion in the country's non-oil sector.

**Residential**

* The average transaction value of residential properties in the Qatar real estate market stabilized at 2.6 million Qatari Riyals per quarter but decreased by 1.8% year-on-year, while transaction volumes increased by 33.7% quarter-on-quarter.

* In Q4 2024, the Qatar real estate market witnessed 294 mortgage transactions across all built property asset classes, a 23.5% increase year-on-year. The total value of mortgage transactions reached 24.8 billion Qatari Riyals, a significant increase of 168% compared to the same period last year.

* Approximately 12,000 apartment lease contracts were signed in Q4 2024, a decrease of 21.3% year-on-year. New agreements accounted for 93% of total leases.

* Around 4,800 villa lease agreements were finalized, a decrease of 5.3% year-on-year, with 86% being new contracts.

**Office**

* Average monthly rents stabilized at 66 Qatari Riyals per square meter on a quarterly basis, while decreasing by 1.5% year-on-year.

* An additional 170,000 square meters of leasable area was expected to be added in Q4, but completion dates have been postponed to 2025 due to construction delays.

**Retail**

* Total retail supply remained stable quarter-on-quarter at 5.5 million square meters of leasable area due to no significant additions in Q4.

* Average monthly rents in shopping centers decreased by 2% quarter-on-quarter and 6% year-on-year in Q4 2024.

**Hotel**

* The total hotel stock estimated by the Qatar Tourism Authority is 39,828 rooms. 67% of the total stock consists of four- and five-star hotels, while 7.5% are classified as one- to three-star hotels.

* Average hotel occupancy rates reached 67%, a 15% increase year-on-year.

* As of December, the average daily rate (ADR) was 428 Qatari Riyals, a 5% increase year-on-year. Meanwhile, revenue per available room (RevPAR) was 285 Qatari Riyals, a 21% increase.

* The average daily rate for five-star hotels was 602 Qatari Riyals, while the average daily rates for three- and four-star hotels were 193 Qatari Riyals and 240 Qatari Riyals, respectively.

**Tourism**

* Total visitor numbers exceeded 5 million in Q4, a 25% increase year-on-year. Visitors from GCC countries accounted for 41% of the total.

**Fiscal Year 2025 Outlook**

**Economy**

* The Federal Reserve is likely to cut interest rates fewer times in 2025 than initially expected, as inflation is not projected to decline further.

* According to the International Monetary Fund, Qatar's real GDP growth is projected to increase by 2% in 2025, primarily due to the expansion of liquefied natural gas projects and growth in the tourism sector.

* Qatar's 2025 budget allocates 20% to healthcare and education, with spending projected to remain below 5% compared to 2024. Wages and salaries are projected to increase by 10%, while revenues are expected to decrease by 2.5%, including a 3.2% decline in oil and gas revenues.

**Residential Prices and Rents**

* Residential rents in the Qatar real estate market are expected to remain stable in most areas in early 2025, with a moderate increase projected for high-end properties in upscale areas.

**Office Prices and Rents**

* The total office supply is estimated at 7.4 million square meters of leasable area due to the postponement of certain projects from Q4 2024 to 2025.

* Average citywide rents are expected to adjust slightly, with moderate increases possible in prime locations where Grade A office buildings are located, while secondary areas may see declines over the coming year.

* Dow Jones is expected to open an office in Qatar in 2025.

**Retail**

* The total retail supply for 2025 is projected to be 5.8 million square meters of leasable area, with 2.6 million square meters attributed to organized retail space and 3.2 million square meters to unorganized retail formats.

* The Qatar Outlet Village is scheduled to open on Qetaifan Island in 2025, which will be the country's first such outlet village, offering over 100 international luxury retail stores.

* Centro Mall is scheduled to open in 2025, providing approximately 20,000 square meters of leasable area.

**Hotel**

* The Swiss Hotel Corniche Park Tower, initially planned to open in late 2024, is now expected to begin operations in early 2025. The Andaz Hotel West Bay is expected to debut in Q1 2025, while The Doha Edition and Corinthia Hotel are also expected to welcome guests this year. These projects will collectively bring over 1,100 hotel rooms to the market.

**Tourism**

* Qatar aims to host over 5 million visitors by 2025, with a projected 5% increase in visitor numbers.