Qatar’s real estate sector sees 89 percent quarterly rise in mortgage transactions: Report – Economy Middle East

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During the first quarter of 2024, Qatar’s real estate sector witnessed stabilization across its residential areas, according to the latest report from Valustrat titled ‘Qatar Real Estate Research First Quarter 2024.’

The real estate sector witnessed a significant 89 percent quarterly growth in the value of mortgage transactions across all asset classes. Moreover, it saw a 36.8 percent annual increase. Along with that, residential sales saw a 3.7 percent increase compared to Q4 of 2023.

Buy/sell, rent/lease residential &
commercials real estate properties.

Real estate market stable

According to the ValuStrat Price Index (VPI), the residential capital values stood at 97 points, marking no overall change on a quarterly and yearly basis. Meanwhile, the apartments segment recorded 97.8 points, remaining steady for the past two years. The villa market also remained relatively stable, declining slightly by 1 percent annually.

Mortgage transactions surge

In Q1 of 2024, Qatar’s real estate sector recorded 236 mortgage transactions across all asset classes. The total sales value of the mortgage transactions stood at QAR16.8 billion, an 89 percent quarterly increase and a 36.8 percent annual increase.

In addition, the highest number of traded units were villas with a 6.6 percent annual increase. The report attributes this increase to last year’s housing loan amendments introduced by the Qatar Central Bank.

Office sector dips slightly

Qatar’s real estate sector witnessed changes in its office sector with government establishments gradually absorbing office spaces in premium locations. Despite that, the overall sector saw a decline of 1.5 percent in rent value.

Retail shopping centers in the country remained stable compared to last quarter’s prices. However, the real estate sector saw changes in the street retail segments inside and outside Doha, with the former decreasing by 6 percent and the latter increasing by 3.1 percent quarterly.

Qatar’s hospitality sector recorded an 11 percent annual increase in the Average Daily Rate (ADR) while the Revenue per Available Room (RevPAR) surged by 53 percent in Q1 of 2024.

Read: Residential Q1 sales transactions up by 77 percent year-over-year in Riyadh

Real estate supply

The report estimated that in Q1 of 2024, residential stock in Qatar’s real estate sector reached 394,000 units, with around 148,000 villas and 246,000 apartments. Among the most notable projects that ended were the Murano Tower and Tower 33, both in Lusail Marina with a total of 365 apartments.

Valustrat expects the total supply in 2024 to reach 9,200 units, 40 percent of which will be in Lusail. Moreover, it expected 6,200 additional units in 2025.

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