Demand surges for Lusail apartments in third quarter of 2023
Doha, Qatar: Several industries across the country have shown signs of stabilisation, despite a fall in apartment rental rates in the second quarter of this year.
However, according to its quarterly report by Cushman & Wakefield, an increase in demand for apartments in Lusail was witnessed during Q3 2023.
The report said: “Reduced rent, coupled with rent-free incentives saw an increase in demand for apartments in The Pearl Qatar and Lusail in August and September, which coincided with the beginning of the school year.”
As the supply surges, there is also an increasing disparity between occupancy rates within the market. “High-specification buildings with good-quality property management are starting to enjoy high demand from prospective tenants, despite evidence of higher vacancy rates throughout the market,” stated Cushman & Wakefield.
Newly developed elegant apartments including Madinatna and Ezdan Oasis, which benefitted from robust demands during FIFA World Cup 2022 have been building occupancy again throughout this year, with attractive rental deals on offer to new tenants.
Across Doha, compound villas persist to be positively impacted by high occupancy as rents remain relatively stable throughout the year. The report notes that one-bedroom apartments at The Pearl Island can usually be leased for between QR7,000 and QR9,500 per month, depending on the location and quality of the building.
On the other side, multiple three-bedroom units on the Island are available for rent ranging between QR13,500 and QR16,500 per month. In Fox Hills, one-bedroom apartments are now typically available for between QR5,000 and QR6,500 per month, while three-bedroom units in the area range between QR8,500 and QR10,000 per month.
A recently released report by the Planning and Statistics Office, states that in July and August, the housing market sales transactions dropped by 3.1 percent as compared to the same period in 2022.
The overall year-to-date sales transactions declined by 24.5 percent in 2023. The sales activity also declined following a surge in activity in 2020, which was triggered by the enactment of Law No. 16 of 2018. This law, however, permitted expats to buy properties in Lusail and benefit from residency permits that were granted to the investors.
“Structures are being put in place in 2023 to develop the real estate investment sales market in Qatar in the coming years,” the report noted adding that the launch of a Real Estate Regulatory Authority (RERA) will increase transparency in the market and enhance statutory and legal protections for investors.
It further added that “Qatar Central Bank (QCB) has announced a series of amendments to its real estate financing (mortgage) regulations, which is expected to boost the residential sales sector by redefining the loan-to-value rates and increasing maximum mortgage terms for Qatari nationals and expatriates.”
Source: The Peninsula