Research company witnesses high supply of housing units and a slight drop in rent since 2019.
There are now some 300,550 residential units in Qatar. That’s according to ValuStrat, a Middle East company providing advisory, real estate, and industrial consulting.
During the past six months, Qatar’s residential market saw the completion of 2,250 apartments and 700 villas, with the majority of these units located in Lusail, The Pearl and West Bay.
There was also a noticeable oversupply within the first half of the year of approximately 80,000 units, that means all of those residential properties are empty with no one to fill them, something that’s helped bring down rental prices in some sectors. Add to that some 7,250 new units expected to be ready before the end of 2020.
ValuStrat reported a 14 percent drop in rent over the past two years, particularly in three-bedroom apartments. Moreover, the average capital value for apartments was QR 1,036 per sq ft and dropping by 2.5 percent in comparison to the first six months of 2019.
The median monthly asking rent for villas also saw a 3.7 percent drop in comparison to the second quarter of 2019, with five-bedroom apartments experiencing the highest fall. The primary locations that witnessed a drop in rent prices were Abu Hamour, Al Duhail, Al Gharrafa and Al Waab.
The highest overall fall in rents during the first half of 2020 was 2.5 percent in residences located mainly in Al Sadd, The Pearl and West Bay in comparison to the fourth quarter of 2019.
With Qatar hosting the World Cup in just over two years, the government’s housing department and the Supreme Committee approved the construction of more than 150 buildings, towers and residential complexes to accommodate for the tens of thousands of visitors expected not just for the tournament but for projects associated with it as well as those that are part of Qatar’s 2030 National Vision.