Qatar’s Real Estate Market Hits QR6.8 Billion in Q3 Mortgage Transactions

Qatar’s real estate sector saw mortgage transactions reach a total value of QR6.8 billion in the third quarter (Q3) of 2024, reflecting a 7.9% year-on-year increase, according to a report by research firm ValuStrat.

The quarter recorded 227 mortgage transactions across all asset classes of ready properties, an 8.5% decline compared to the same period last year. Doha Municipality led the activity with 90 transactions valued at QR4.6 billion, followed by Al Rayyan with 69 deals totaling QR1.6 billion.

Residential Stock and New Developments

ValuStrat’s data indicated Qatar’s total residential stock at approximately 396,000 units in Q3, comprising 248,000 apartments and 148,000 villas. Around 410 housing units, including mid-rise buildings and standalone villas, were delivered during the quarter.

For 2024, the market anticipates the delivery of 7,000 new apartments, with notable projects such as Corniche Park Towers, Thirty-Five Tower, and developments in Gewan Island and Lusail set to contribute significantly. Approximately 4,000 additional residences are expected in 2025, with nearly 40% concentrated in Lusail.

Sales and Rental Trends

Residential property transactions witnessed a downturn, with the volume for residential houses dropping 18% quarter-on-quarter (QoQ) and 15% year-on-year (YoY). The median price for residential houses stood at QR2.6 million, declining by 7% QoQ and 1.9% YoY.

The Pearl Island and Al Qassar bucked the trend, reporting an 18% increase in transaction values and a 28% rise in volume QoQ.

Rental rates for apartments remained stable compared to the previous quarter but fell by 4.7% YoY. The median monthly rent for apartments was QR6,000, with one-bedroom units renting at QR5,000, two-bedroom units at QR6,250, and three-bedroom units at QR8,000.

Villas, however, showed slight growth in demand and pricing. The median rent for villas increased by 1.1% QoQ, with three-bedroom villas renting at QR11,750, four-bedroom villas at QR12,250, and five-bedroom villas at QR14,000. Over 5,200 villa lease contracts were signed during Q3, marking a 3.4% YoY rise, with new tenancies accounting for 93% of agreements.

Market Stability

Anum Hassan, Head of Research at ValuStrat, highlighted the market’s overall stability, noting that while some high-end areas experienced rental increases for larger units, the broader market remained steady.

The ValuStrat Price Index held at 96.6 points, benchmarked to a base of 100 set in Q1 2021, showing no significant quarterly or annual shifts in valuation prices for apartments and villas.

“Market signals suggest a steady outlook with selective areas showing potential for optimism,” Hassan added, emphasizing continued stability in Qatar’s real estate landscape.