November 4, 2021

Quarterly Report Qatar Q3 2021: Residential Market Overview

Increase in residential sales as purchasers take advantage of residency permit benefits

Following the introduction of Law No. 16 of 2018 to expand
freehold zones, Cabinet Resolution No (28) of 2020 defined the
areas where non-Qataris may own real estate.

The formalising of ownership laws has resulted in an increase in
demand from non-Qataris to buy real estate in Qatar. This
demand has been driven by two major factors:
• The granting of residency permit to property owners
whose property value is greater than QAR 730,000
• The delivery of affordable residential investment
opportunities in Lusail

Following an increase of residential sales by 58% in 2020, sales
volumes have increase further in recent months, with y/y growth
of 10%+ expected by year end.

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.

While there will be a substantial requirement for apartment and
villa accommodation through the Supreme Committee for
Delivery and Legacy, we are also seeing demand from the
private sector to take corporate (multi-unit) leases to
accommodate their additional requirements for staff
accommodation in 2022.

Over the past year, rental levels had stabilised after five years
of decline. As COVID-19 restrictions ease globally and
international recruitment re-commences, we are witnessing
demand from new residents.

These factors have led to upward pressure on residential rents
throughout the market in Qatar for the first time in five years.
Asking rents for vacant apartments and villas have typically
increased by 5% – 10% in recent months. While the upward
pressure in rents is inevitable as the FIFA World Cup
approaches, this spike in demand will be temporary, and we
expect to see rents fall again post-tournament. In many
instances we are seeing landlords in Qatar prioritise longer term
occupancy over world cup premiums to avoid vacancy in 2023.

as The Pearl-Qatar typically range from QAR 8,500 per month
to QAR 11,500 per month, while one-bed apartments in areas
such as Al Sadd are available for between QAR 4,500 and QAR
7,000 per month. Monthly rents in one-bedroom in older
buildings in central Doha range from QAR 3,000 to QAR 5,000.

 

Cushman & Wakefield Quarterly Report Qatar Q3 2021