Qatar Condominium and Apartment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Qatar Condominium and Apartment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The size of the Qatar Condominium and Apartment Market is USD 2.48 billion in the current year and is anticipated to register a CAGR of over 3.11% during the forecast period. The market is driven by the huge demand for the residential estate from foreigners. Furthermore, the market is driven by the demand increase due to the recent FIFA world cup.

• The hosting of a FIFA World Cup usually results in a significant increase in demand for short-term rental accommodation in cities where stadiums are located, resulting in dramatic price increases—but the uplift to the sales market occurs over a long period. The short-term boost to the property market, such as the rental upswings experienced by Qatar and neighbouring Dubai, typically lasts only a few weeks and primarily affects properties located near the stadiums. The long-term impact of hosting one of the world's largest sporting events on residential real estate markets is more complicated to predict. The long-term effects of hosting the soccer tournament vary greatly from country to country and city to city.
• The residential real estate market has seen an increase in activity in 2022, which can be attributed to the increased demand generated by the World Cup. For the first time since 2015, we are seeing evidence of rental increases in Qatar; however, this increase is likely to be temporary, as demand is expected to fall in 2023. The commercial market has also seen an increase in activity, particularly in Lusail; however, rental levels are still being influenced by the market's general oversupply. Apartment rents are expected to rise further as availability becomes scarcer ahead of the World Cup. Landlords are increasingly likely to demand two-year contracts to capitalize on rental inflation and mitigate the impact of decreased demand in 2023.
• According to Property Finder, sales demand is attributed to Qatar's new foreign property ownership, investment laws and their inherent benefits, as well as an increase in the areas in which foreigners are now permitted to invest. The Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup, as well as companies looking for staff housing, have reported that 80 per cent of residential units are occupied. The Quarterly Real Estate Bulletin of the Ministry of Justice reported 1251 real estate sale transactions in the first quarter.

• Following the passage of Law No. 16 of 2018 to extend freehold zones, Cabinet Resolution No. (28) of 2020 established the regions in which non-Qataris may own real estate. The formalization of ownership regulations has increased demand for real estate in Qatar from non-Qataris. The residential leasing market in Qatar has also experienced a noticeable change in recent months as demand associated with the hosting of the FIFA World Cup emerges. Over the past year, rental levels stabilized after five years of decline.
• As COVID-19 restrictions ease globally and international recruitment re-commences, we are witnessing demand from new residents. Semi-furnished one-bedroom apartments in prime districts such as The Pearl-Qatar typically range from QAR 8,500 (USD 2,334.53) per month to QAR 11,500 (USD 3,158.47) per month, while one-bed apartments in areas such as Al Sadd are available for between QAR 4,500 (USD 1,235.92) and QAR 7,000 (USD 1,992) per month. Monthly rents in one-bedroom in older buildings in central Doha range from QAR 3,000 (USD 823.95) to QAR 5,000 (USD 1,373.25).

• The rental index fell by 0.4 per cent in the first and second quarters of 2021, compared to 3.7 per cent in the third and fourth quarters of 2020. During the same time (Q1 and Q2) in 2020, there was a 2.7 per cent decrease. Tenant migration has increased significantly in the recent two quarters, i.e., Q1 and Q2 2021.
• The spike in demand and restrictions in supply has seen rents in Qatar increase by more than 30% for long terms leases; however, recent evidence indicates that the upward pressure on rental levels may be easing. Typical two-bedroom, semi-furnished apartments in Porto Arabia, are currently leasing for QAR 13,000 (USD 3,570.45) to QAR 15,000 (USD 4,119.75) per month, while this is expected to fall again in 2023 when supply increases and demand eases.

Qatar Condominium and Apartment Market is very competitive and fragmented. Key players competing in the Residential real estate market in Qatar include Al Mana Real Estate, United Development Company, Qatari Diar Real Estate Company, Ezdan Holding Group, and Barwa Real Estate. Foreign investment in Qatar's residential real estate market is expected to rise in the next years, with non-Qataris potentially investing in specific projects such as the West Bay Lagoon and The Pearl.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support