Property Finder: Qatar’s Real Estate Rental Market Sees Demand Outstripping Supply

The latest Qatar Real Estate Market Trends Report from Property Finder, MENAT’s leading prop-tech company, identified a significant surge in rental demand during H1 2022, outstripping supply for the first time; subsequently, investments in apartments reached an all-time high.

The report’s eighth edition highlights key market insights from 16 local-sector experts, showcasing how limited supply has driven price increases across all areas and unit types. Doha recorded an H1 year-on-year (YoY) uplift of 23% in average rental unit pricing, while Al Khor witnessed a 38% price rise over the same period. This demand shift is a result of Qatar’s imminent hosting of the 2022 FIFA World Cup™.

The report also stated that the price rises are anticipated to be temporary, with demand expected to decrease slightly in 2023, creating a more stable price index for rental units. Currently, the demand for apartments, particularly short-term and serviced units, continues to rise.

Qatar’s residential stock is estimated at 308,000 units, 700 of which were added during Q1 2022, particularly in The Pearl and Lusail.  Occupancy of residential units is reported at 80%, mainly due to demand for leases by the Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup™ and companies seeking staff accommodation.

According to the report, Qatar’s sales market continues to gain traction, with the Ministry of Justice’s Quarterly Real Estate Bulletin citing 1,251 property sale transactions during Q1 2022, totalling 4,859,712,958 QAR. The report attributes the sales demand to Qatar’s new foreign property ownership, the attractive investment laws and their inherent advantages, and an increase in the areas foreigners are now allowed to invest in.

“With Qatar about to host one of the world’s most popular sporting events, investors and first-time buyers are now more confident in investing in the market. The Ministry of Justice is also taking the necessary steps to create a more transparent market, which will open the doors for further investments in the near future,” commented Afaf Hashim, Country Manager at Property Finder Qatar.

Sales listings for Doha during H1 2022 on Property Finder Qatar’s website jumped 14% YoY, resulting in a 27% increase per square metre in the advertised average price. Concurrently, sales listings for Lusail rose by 7% per square metre over the same period.