The residential sector saw a total of approximately 394,000 units, with significant completions including the Murano Tower and Tower 33 in Lusail Marina, adding 365 apartments to the market. Despite these developments, there was a marked decline in rental values. The median monthly rent for residential units dropped by 3.6% compared to the last quarter, with an annual decline of 6%. The average monthly leasing rate for apartments in Qatar now stands at QAR 6,000, reflecting the broader downward trend.
Notably, Lusail, a key area of development, is expected to see 40% of the 9,200 new units slated for completion in 2024, indicating its growing importance in Qatar’s real estate landscape. However, areas like The Pearl Islands and Al Qassar witnessed a significant drop in transaction volumes and values, with decreases of 68% and 44% respectively from the previous quarter.
The villa market also experienced a decline in rental rates, with a 1% drop quarter-on-quarter and a 4% decrease annually. However, some areas, such as West Bay Lagoon and Al Wakra, bucked this trend, recording rental increases of 3.5% and 1.2%, respectively.
The office sector, while facing overall depreciation in rental values, saw government establishments increasingly occupying premium spaces, reflecting a steady demand in certain sub-sectors. Retail segments exhibited mixed performances, with street retail outside Doha seeing a 3.1% quarterly increase, while those within the city experienced a 6% decline.
On a positive note, Qatar's hospitality sector recorded a robust 11% annual increase in the Average Daily Rate (ADR), while Revenue per Available Room (RevPAR) surged by 53%, showcasing the sector's strong recovery and growth prospects.
Overall, Qatar’s real estate market appears to be in a phase of stabilization, with ongoing developments in key areas like Lusail expected to contribute to future growth. While residential rents have softened, other sectors, particularly hospitality, are experiencing significant gains, underscoring the diverse dynamics at play in the market.
This complex landscape of resilience and fluctuation presents both challenges and opportunities for stakeholders in Qatar’s real estate sector as they navigate these evolving trends.