Fewer Qataris are apparently choosing to rent homes instead of buy them, despite soaring land prices amid a development boom, according to new government figures.
As of September 2013, some 12 percent of Qatari households live in rented homes, down from 16.8 percent in 2008.
Meanwhile, nearly two-thirds of expats live in rented accommodation, according to the fifth edition of the Household Expenditure and Income Survey, which was conducted by the Ministry of Development, Planning and Statistics (MDPS).
Over the past few years, Qatar has become an increasing expensive place to buy land and build. Prices are especially high in central Doha, where much of the prime real estate has been earmarked for several infrastructure projects.
Amid the development, figures released by the Ministry of Justice last week showed that there is also increasing demand for small plots of land in Doha and its suburbs to build houses.
For example, a moderately sized house of 1,123sqm in the central district of Fereej bin Mahmoud recently sold for QR90 million (US$24.7 million), at a rate of QR80,000 (US$21,974) per square meter.
This is significantly more than homes in some of the most exclusive and desirable parts of central London, which command prices of QR62,367 (US$17,131) per square meter.
In-depth look
The MDPS report, which is more than 200 pages long, provides an in-depth look into Qatar households.
Last month, the selected figures from the report were released, outlining that Qatari households bring in three times as much income as expat ones. But the full breakdown of the survey has only now become publicly available.
To collect its findings, the ministry conducted a year-long study between September 2012 and September 2013 of the detailed income and spending habits of 3,856 households – 1,920 Qatari and 1,936 non-Qatari.
Each family was asked to keep a diary of all their money coming in and out for the month.
Notably, the average Qatari household was more than twice the size of the average non-Qatari one (nine people versus four people). “Collective households” and labor camps were not included in this survey.
Of the sample of households, 82 percent of Qataris lived in their own homes, 12.6 percent rented and 4 percent resided in government housing.
This compares to 62 percent of non-Qataris renting, while nearly one fifth (18 percent) lived in accommodation provided by their companies and 16 percent in government housing.
Monthly spend
Housing accounted for only 8 percent of the average Qatari family’s monthly expenditure, although for many the actual cost was lower because so many own their own homes.
Rent, however, took up a third of the average expat’s household, at QR6,177.
Total average monthly expenditure for a Qatari household came to QR49,663, while for non-Qataris it was QR18,084.
The biggest single expense for the average Qatari household was transport and communications, which accounted for one-fifth of the monthly budget (QR9,560).
Food was the next biggest expense for both Qataris and non-Qataris, taking up 16 percent (QR8,033) and 15 percent (QR2,700) of outgoings, respectively.
Other points of interest regarding Qatar households include:
- Some 8 percent of Qatari households and 9 percent of non-Qatari households don’t own a computer.
- The most common type of dwelling for a Qatari household is a villa. Two-thirds of Qatari respondents described their house as one, while 1.5 percent said they lived in a palace, 9 percent in an Arabic house and 3 percent in a flat.
- Half of non-Qatari households reported living in an apartment, while nearly one third (28 percent) said they lived in a villa.
- The vast majority of the households surveyed (91.7 percent Qatari and 87 percent non Qatari) said they mainly used gas to cook.
- Some 60 percent of all households on average live less than 1km from the nearest food shop, while nearly one tenth (9.8 percent) live more than 5km away from one.
- And only around one-fifth (22 percent) of households in Doha said they had their domestic rubbish collected by a dustman, while more than three quarters of people reported they disposed of it by throwing it in the nearest container.
Last month the Ministry of Municipality and Urban Planning warned people that they risked fines of up to QR5,000 for dumping garbage at the roadside or in public places, while those who leave garbage bags outside their homes, rather than disposing of them in bins, could incur a QR100 fine.
The crackdown on littering is part of Baladiya’s public cleanliness campaign, We All See You.
Here’s the full MDPS report:
Thoughts?
where do the other 1/3rd of non Qatari’s live? on the streets?
I have spoken to many people and work with many non-Qatari’s, none own their own home (in Qatar) let alone 1/3rd.
1/3rd expats must have own houses here in qatar… you might have spoken to many non-Qatari who ain’t rich enough to own a house here in qatar
hehehehe.
That is a horribly wrong figure. 1/3rd of the expats cant be stupid enough to make real-estate investment here. Maybe that 1/3rd includes the people who are provided company accommodation. Otherwise, I can’t make any sense out of that figure.
Statistics are racist !
Nothing is wrong guys. 62% rent houses, 18% are given accommodation by their companies and 16% are given accommodation by the government. Only about 4% do own their houses.
Its in the story, Labour camps and company share houses aren’t included.
Yet their stupid enough to stay here and work!! Never could figure that one out
Not exactly rocket science – Easy money.
Possibly the remaining 1/3 are drivers and maids, and therefore live in the accommodation of their sponsors (where they pay no rent)?
I dont understand how an expat can purchase a home in Qatar. I thought that a qatari had to alway Co-own the land. Whats the truth on that?
“a moderately sized house of 1,123sqm” rofl. In most countries a modestly sized house is <250m2!!!
I thought the laws didn't allow expats to own ground in Qatar, except at certain recent developments.
yes because most of our families consist of fours and threes on the other hand their families consists of fives and more. I liked “moderately…1,123sqm”
Seems like the quality of dn hasn’t improved much in the last month. I was bored and dilusional enough to see what’s up on this site.
Walker you want to write, try to put something togther that’s half decent, the amount of inaccuracy and misguidance is very sad. What’s sadder is the expat community responses.
1. Same was reported in all Arabic papers, which Dohanews doesn’t bother cross referencing with, the unaccounted expats not mentioned do not pay rent as either their employer provides their housing or they are govt employees and the govt provides housing. Those mentioned in the article are expats who pay their own rent.
2. Less qatari live in rentals is not due to higher ownership of houses, but due to high rents for a single villa. With a single villa going from 10 to 15 a month, this accounts for about 20 to 25% of avg Qatari monthly pay. Same sized villa would cost about 6 to 8 ten years ago. Due to this more young Qatari families end up living in their parents house or in extensions to their parents house till the government issues them a land and financing to build their own. This study seems to ignore this important point.
3. Walker, take a walk in bin Mahmood, what do you see? First things that comes to mind? Parks, tree lined streets?
The price paid was not for the moderate villa you investigative journalist. It’s for the plot the land. Most land in bin Mahmood is zoned as UG-3, retail, M, plus 10. That’s up to 3 levels underground for car park, retail ground floor plus mezzanine topped by ten or more floors of apartments. Comparing this freehold land which will be redeveloped with a lease hold flat in london is like comparing apples and oranges.
Lovely to see dn continuing on with their half a$$ed “journalism”
Good points.
@a_qtr:disqus You are the man! I would rather read the information that you provide then Doha News. They need to learn how to improve their lazy Google searches or pretend to be a real news organization and go out and pull real facts and information to provide. You make very good points I like and appreciate that!
Copy-paste is always easier than putting your brain to work
Very useful clarifications.
Not sure if this survey was poorly conducted or the presentation here makes it sounds so. For example, what reason is there to draw distinction between Qatari vs non-Qatari households when it come to using gas for cooking?
In fact, for most of the figures in this survey, the non-Qatari group should have been broken down into smaller groups to be more balanced. I’m sure that comparing the households of those from Arab countries VS. Indian subcontinent VS. Philippine & East Asia VS. Europe, North America, and Australia would have proved far more interesting to read.
“Two-thirds of Qatari respondents described their house as one (villa), while 1.5 percent said they lived in a palace, 9 percent in an Arabic house and 3 percent in a flat” I wonder what criteria was used to distinguish between a villa and an Arabic House? Or a Palace for that matter!
I have to admit that I am the biggest idiot in Doha because I cant fathom why anyone would pay $24.7M for a house in Fereej bin Mahmoud or anywhere in Qatar. That blows my mind. When you step outside of your house… what beauty are you looking at? What natural wonder are you looking at beside the wonder of a dry dead desert with natural gas pools underneath? I can pay $15M in Hollywood and get Hills with trees and much larger variety in restaurants, shopping centers, night clubs, and unlimited activities both indoors and outdoors. I’m sorry. I can not see the value in what is being sold. It makes no sense to me. But I guess it is not for me to find value in long term living here. LOL! The visa and Kafala system certainly don’t encourage. I guess I’ll just make my loot and take off when I’m tired of it all. LOL! Cheers!
But I don’t think the ones spending 25 Mil on a house in Qatar will pull in their government handouts living in that much preferable Hollywood home….would they? When I get run off the road by a jerk in a LC I sometimes find solace in the thought “he’s probably just cranky because this desolate sandbox is as good as it gets for that poor dude.”
Hahahahahaha!
Simple, the house will soon be demolished and can be rebuilt to a “100” apartment building…
Well then Doha news should make a note that the area is being rezoned for Multi family dwellings? But still $22M still seems a bit inflated. I’m not sure if the Qatari gov uses zoning restrictions in their city planing but that may certainly add some sense to the madness.
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Qatari’s have money! Lots of it.