The evidence says that there have been rental increases in Qatar for the first time since 2015, however this rise is likely to be temporary.
This year is likely to experience a continuous rise in residential rents, according to the global real estate advisory firm Cushman and Wakefield.
In its Real Estate Market Review it said the increase was a result of high demand for residential property in Qatar due to the highly anticipated FIFA World Cup Qatar and that the rents are expected to climb for the first quarter of 2022.
According to the report, the influx of demand is partially due to the Supreme Committee and Legacy reserving accommodation to house fans during the tournament.
The surge in demand also comes from corporate entities aiming to secure highly-needed staff accommodation prior to the major sport event.
“The impact of increased demand on rental levels has been most evident in prime apartments, where rental levels for new leases have increased by 10-15 percent over the past year. As availability falls further towards the end of the year, we expect to see residential rents continue to climb,” it said.
As for villa compounds, recent renewals and new lettings in some of the country’s compounds have seen rents rise by between two and five percent.
The famous vacant Pearl-Qatar apartments are looking at a typical range from 9,000 QAR to 10,000 QAR per month for a one-bedroom unit to between 16,000 QAR and 19,000 QAR per month for a three-bedroom unit.
Apartments in older buildings and in areas including Bin Mahmoud can be leased from approximately 5,500 QAR for a one-bedroom apartment and from 8,500 QAR monthly for a three-bedroom apartment.
Cushman and Wakefield’s report estimated that the amount of apartments in Qatar reached 230,000 units in the first quarter of 2022, while the number of villas was approximately 130,000. This number of supply will increase drastically throughout 2022 as major new residential projects are yet to be finalised.
Ezdan Complex has announced that 4,000 units will be completed ahead of the World Cup, while Barwa’s Madinatna in Al Wukair will deliver 6,800 units.
According to statistics released by the Planning and Statistics Authority, the number of residential sales transactions in January and February dropped by 22 percent on the corresponding months last year. This followed a year on year fall of 30 percent in December, which is indicative of the slow pace of residential property sales after a period of robust growth in 2020 and 2021.
Property conditions in Qatar
According to another report, the rental increases on house properties as a result of the World Cup due in November this year, is likely to be temporary as demand is expected to subside in 2023.
The main catalyst for property investment recently has been the increase in ‘Freehold Zones’ under Law No. 16 of 2018. This law enables non-Qatari ownership of real estate in ten districts. In addition, the new law grants residency rights for property owners, which is likely to continue to drive demand for apartments in Lusail, West Bay and The Pearl.