The latest Qatar 2nd quarter real estate review report from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics in Qatar’s property market. The report comprehensively analyses the residential, commercial, and hospitality sectors and highlights resilience and strategic growth opportunities.
Anum Hasan, Head of Research, Qatar, shares her synopsis of Qatar’s real estate market. She and her research team said that Qatar’s residential real estate market maintained stable capital values in the second quarter. At the same time, rental rates experienced a decline, as reported by the ValuStrat Price Index (VPI).
The ValuStrat Price Index (VPI) for residential units held steady at 96.6 points, unchanged from the previous quarter. This index is benchmarked against a base of 100 points set in Q1 2021. The apartment index was recorded at 97.3 points, while the villa index stood at 96.4 points. Valuation prices in both categories showed no variation on a quarterly basis.
She notes that despite high interest rates, there was a notable increase in mortgage transactions during the quarter, with Doha municipality contributing approximately QAR 10 billion to the total mortgage value. Office sector rents remained stable throughout the period. Street retail and shopping centres in Doha saw a quarterly decline of 5% and 2%, respectively.
Tourist arrivals surged by 26% year-on-year, contributing to a 38% annual rise in RevPAR. Additionally, the government unveiled the Simaisma Project, a major new entertainment district. In the industrial market, median rents for both ambient and climate-controlled storage facilities saw a yearly decline of over 5%.
She concludes that real estate capital values in Qatar demonstrated resilience in the second quarter, despite softening rentals. Increased mortgage activity supported growing investor confidence despite higher interest rates.
Meanwhile, the rise in tourism and entertainment projects may lead to a period of cautious optimism.
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About ValuStrat:
ValuStrat is an international consulting group that provides advisory, valuation, research, transaction advisory, due diligence, and industrial consulting services, working across various industry sectors. With 45+ years of experience, a network of 13 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
