According to the Autumn 2024 Qatar Real Estate Market Review by international real estate consultancy Knight Frank, the total number of sales in Qatar’s residential property market increased by 12.6% to 867 deals during Q3, while the total value of sales from July to September increased to QR3.6 billion, or a 12.8% year-over-year increase.

Faisal Durrani, Partner – Head of Research, MENA, said: “Residential values in Qatar remain in a state of decline following the ‘World Cup boost’, with average prices for apartments and villas retreating by 6.6% and 6.4% respectively.

However, prime areas are defying this tendency; for example, prices at The Waterfront and The Pearl increased between Q3 2023 and Q3 2024. The Pearl is still a popular neighborhood for wealthy locals in spite of this.

“The improvement in the total number and value of deals hints at a possible turning point for the market, with the luxury end of the market attracting the most attention and registering the strongest price growth, however the mid-market price segment appears to remain over supplied, as evidenced by the fall in prices in locations such as Al Kheesa (-10%) and Al Wakrah (-5%) over the last 12-months”.

Knight Frank emphasizes that the continuous flow of new supply, especially in the mid-market area, poses a significant risk to the market. By the end of 2026, there will be 408,000 residences in Qatar, up from the current 394,000, according to Knight Frank.

Knight Frank reports that since their launch, luxury complexes like JMJ Properties’ The Grove (293 units) and Al Mirqab Real Estate’s Four Seasons Resort and Residences at The Pearl Island (161 units) have experienced strong sales.

At an average price of QR5,757 per month, Al Wakair is one of the most affordable neighborhoods in Doha, while Abu Hamour continues to be the most expensive neighborhood for villa purchases at QR8,609 per month. At an average of QR14,364 a month, Lusail’s Waterfront has the highest apartment sales prices in the country.

On the other hand, Fox Hills provides more reasonably priced apartments in Lusail, with rates starting at QR10,560 a month.

According to Knight Frank, within the past 12 months, villa rents have decreased by 7.5% in the leasing market. On the other hand, over the same time period, apartment rents have increased by 2.3%.

Rents in upscale neighborhoods like West Bay and Marina District have increased by 9.6% and 3.2%, respectively, due to high demand from professionals and expats looking for contemporary conveniences and easy access to Doha’s main business districts.

On the other hand, because of greater availability and landlord competition, rents in neighborhoods like Fox Hills have decreased by 5%.

Adam Stewart, Partner – Head of Qatar, explained: “The influx of new residential units, particularly in areas like Fox Hills and Al Erkiyah, has expanded tenant options, exerting downward pressure on occupancy rates and mid-market rental rates.

Newer, well-managed properties are attracting premium rents while older buildings in less desirable locations are experiencing declining demand.”

“As the market continues to evolve, these trends underline the importance of location, quality, and amenities in determining rental performance.” Stewart added: “The public sector remains a key driver of demand, with notable leases signed by government ministries and state-owned enterprises.

A prime example is the government’s lease of the World Trade Centre Tower on the Corniche, offering 58,000 sqm of Grade A office space.”