Qatar’s real estate sector recorded sale contracts worth QAR1.043 billion ($284.6 million) in December of last year, according to the latest data from the Real Estate Registration Department at the Ministry of Justice. The data also revealed that 283 real estate transactions were recorded during the month, with the number of properties sold increasing 12 percent month-on-month.

In general, Qatar’s property sector has remained stable to a considerable extent over the past year, with outcomes closely meeting expectations. While modest declines were observed in certain segments, the overall market held steady. A slight recovery was evident in the second half of the year, notably in the residential sector, where larger, high-end units saw improved performance in select areas, the report said.

“The outlook for 2025 reflects a sense of measured anticipation. While the market has remained stable in recent quarters, early signs of improvement in certain areas suggest the potential for similar trends across other segments of the real estate market,” said Anum Hassan, Head of Research, Qatar at business advisory firm Valustrat.

She added: “The pipeline supply for 2025 across all sectors is also limited. We anticipate these trends will continue or intensify in the coming quarters of 2025. It is important to note that a substantial increase in average rent and occupancy may be challenging to achieve in the next two to three years due to the persistent oversupply in all sectors. However, not all segments within each sector face this issue; certain sub-asset classes perform better, and we project this trend to remain true in 2025.”

Here are some of the highlights of the report:

First quarter 2024 highlights

Economy

• According to the National Planning Council (NPC), Qatar’s real GDP in the first quarter of 2024 grew by 1.5 percent year over year (YoY) and 2.8 percent quarter on quarter (QoQ), reaching QAR175.3 billion.

Residential

Residential stock during Q1 2024 was estimated at 394,000 units, with around 148,000 villas and 246,000 apartments (Census 2020 was used as the base).

• In the first quarter, the Qatar real estate market witnessed 236 mortgage transactions across all asset classes of ready properties. The total sales value attributed to mortgage transactions stood at QAR16.8 billion, an increase of 89 percent QoQ, and 36.8 percent YoY.

Office

• Total office stock was estimated to be 7.1 million sq m GLA.
• A total of 394,000 sq m GLA was in the pipeline to be completed by 2025.
• Office rents fell by 1.5 percent citywide on a quarterly basis and by 5.7 percent YoY, reaching QAR66 per sq m per month.

Retail

• Stock of organized retail space across Qatar’s real estate market totaled 2.4 million sq m GLA with the addition of Aventura Mall (11,000 sq m GLA) during the quarter.

Tourism

• Total foreign arrivals reached more than 1.6 million, indicating a 40.1 percent increase YoY.

• Forty-eight percent of foreign arrivals were from the GCC, followed by Europe at 23 percent, and other Asian countries (including Oceania) at 15 percent.

Hotel

• As per Qatar Tourism, the estimated total hospitality stock was 39,715 keys (74 percent hotel rooms, and 36 percent hotel/serviced apartments).

• Notable openings during the quarter included Millennium Place (150 keys), Rixos Premium Qetaifan Island North (378 rooms), and Riviera Rayhaan along Salwa Road (185 keys).
• Hotel occupancy stood at 75 percent, up by 38 percent YoY.
• The Average Daily Rate (ADR) for 5-star hotels was QAR645, and for 3 to 4-star hotels was between QAR250 and QAR300.

Read: Qatar’s real estate transactions hit $2.23 billion in H1 2024, fueled by growth and economic stability

Q2 2024

Economy

• According to the National Planning Council (NPC), Qatar’s real GDP in Q2 2024 grew by 0.8 percent YoY and 1 percent QoQ, reaching QAR177 billion.

• The Consumer Price Index (CPI) reached 107.5 points in June 2024, noting an increase of 1.7 percent YoY. The Housing and Utility Index dropped by 3.2 percent YoY reaching 94.4 points.

Laws and regulations

• The Ministry of Justice confirmed Law No. 5 of 2024, legalizing digital property registration for the first time in Qatar. The law is aimed at improving transparency in the country’s real estate market.

Residential

• During Q2 2024, residential stock in Qatar’s real estate market was estimated at 396,000 units, with around 148,000 villas and 248,000 apartments. A total of 1,300 residential apartments were delivered during the quarter.

• Doha recorded 26 percent of the total residential transactions, whilst Al Rayyan accounted for another 33 percent.

• Approximately 10,540 lease contracts were signed during the quarter, measuring a decline of 19 percent annually, according to the Ministry of Municipality & Environment.
• In the second quarter of 2024, the Qatar real estate market witnessed 253 mortgage transactions across all asset classes of ready properties, an increase of 10 percent YoY. The total value attributed to mortgage transactions stood at QAR12.6 billion in Q2 2024, producing a decline of 11.7 percent yearly.

Office

• The total office stock was estimated to be more than 7.2 million sq m GLA. Around 16,000 sq m GLA was added during the quarter. An estimated 11,000 sq m GLA emerged from projects located in The Commerical Boulevard and Fox Hills in Lusail.
• By the end of 2024, an additional 313,000 sq m of GLA was expected to be delivered, with 80 percent located in Lusail. 90 percent of the pipeline supply belonged to the Grade-A category.
• Office rents remained steady citywide on a quarterly basis but were down 3.6 percent YoY. West Bay observed a quarterly decline of 1 percent, while office rents in Grand Hamad Avenue dropped by 3 percent.

Retail

• Retail stock remained unchanged at 2.5 million sq m GLA as there was no major addition during the quarter.
• The median monthly rent for shopping centers recorded a decline of 2 percent QoQ. and 5 percent compared to the same period last year

Tourism

• Total international arrivals exceeded 2.9 million achieving a jump of 26 percent YoY.
• Forty-three percent of foreign arrivals were from the GCC countries, while 19 percent and 23 percent were from Other Asian and European countries, respectively.

Hotel

• The total hospitality stock estimated by Qatar Tourism was 39,915 keys (74 percent hotel rooms, and 26 percent hotel/services apartments).
• The Ministry of Municipality & Environment announced the Simaisma Project, a mega entertainment district spanning 8 million sq m. The project will feature luxury resorts, an amusement park, residential villas, a yacht club, a marina, a golf course, restaurants, and shops.
• Hotel occupancy rose by 29 percent compared to last year and stood at 69 percent.

Q 3 2024

• The average capital value for a residential unit was QAR7,095 per sq m. For apartments, this rate was QAR10,287 per sq m and for villas, the average capital value was QAR5,507 per sq m.
• Gross yields for residential units were stable at 5.9 percent. The yields for apartment and villa units were 8.3 percent and 4.7 percent, respectively.

Economy

• According to the National Planning Council (NPC), Qatar’s real GDP in Q3 2024 grew by 2 percent YoY, reaching QAR180.2 billion.

Laws and regulations

• Qatar issued Law No. 12 of 2024, mandating the prioritization of hiring Qatari nationals in the private sector, with provisions for Qatarization plans, financial incentives, and penalties for non-compliance.

Residential

• Total residential stock in Qatar’s real estate market during Q3 2024 was approximately 396,000 units, with apartments accounting for 248,000 and villas amounting to 148,000. An estimated 410 housing units were delivered during the quarter in the form of mid-rise residential buildings and standalone villas.

• The volume of transactions for residential houses decreased by 18 percent QoQ and 15 percent compared to last year.
• The median monthly rental rate for residential apartments remained stable quarterly but fell 4.7 percent YoY.
• The median monthly lease value for apartments was QAR6,000, observing no change since last quarter but declined by 5.5 percent yearly.
• The median rent for villas increased by 1.1 percent QoQ and remained stable when compared to last year. Rents in Al Duhail, Al Gharrafa, Al Waab, and Al Wakra measured a slight increase compared to last quarter.

• More than 13,000 apartment rental contracts were signed during Q3 2024, measuring a decline of 7.4 percent yearly. New agreements accounted for 96 percent of the total leases.
• In the third quarter of 2024, the Qatar real estate market witnessed 227 mortgage transactions across all asset classes of ready properties, a decrease of 8.5 percent YoY. The total value attributed to mortgage transactions reached QAR6.8 billion reflecting an increase of 7.9 percent compared to the same period last year.

Office

• An estimated 38,000 sq m GLA was added during the quarter with the completion of the Mercedes Flagship Commercial Complex, which brought the total stock to over 7.2 million sq m GLA.
• Citywide office rents averaged QAR66 per sq m, steady from last quarter but down 2.2 percent YoY.
• Office occupancy at a country level was estimated at 63 percent with premium locations experiencing higher occupancy compared to secondary areas.

Retail

• The total retail supply in Qatar’s real estate market was recorded at 5.5 million sq m GLA. Organized spaces comprised 2.5 million sq m GLA while unorganized amounted to 3 million sq m GLA.
• An estimated 20,000 sq m GLA of unorganized retail was added during Q3 2024.
• The median monthly rate for shopping centres in Q3 2024 declined by 2 percent QoQ and 4 percent YoY to QAR185 per sq m.

Tourism

• Total foreign arrivals YTD Q3 2024 exceeded 3.9 million, reflecting a jump of 25.6 percent YoY.
• Forty-four percent of foreign arrivals were from GCC countries, while 20 percent and 22 percent were from other Asian and European countries, respectively.

Hotel

• The total hospitality stock estimated by Qatar Tourism was 40,053 keys. Sixty-seven percent of the total stock comprised 4 to 5-star hotels, whereas 7.5 percent was classified within the one to three-star segments.

• As of YTD September, the Average Daily Rate (ADR) was QAR430, an increase of 6 percent YoY. Meanwhile, the Revenue Per Available Room (RevPAR) was QAR284, marking a rise of 30 percent.
• Hotel occupancy was measured at 66 percent, registering an increment of 23 percent YoY.

Q4 2024

Economy

• As per IMF’s projections, Qatar has been on track to achieve a 2 percent growth in their GDP by the fourth quarter of 2024 while maintaining a projected 1 percent growth in the CPI.

• The Purchasing Managers’ Index (PMI) for Qatar recorded a 1.7 percent increase in the final quarter of 2024, reaching 52.9, signaling continued expansion in the country’s non-oil sector.

Residential

• The median ticket size of residential houses in Qatar’s real estate market stabilized at QAR2.6 million quarterly but, down by 1.8 percent YoY, whereas transaction volume increased by 33.7 percent QoQ.
• During the fourth quarter of 2024, the Qatar real estate market witnessed 294 mortgage transactions across all asset classes of ready properties, an increase of 23.5 percent YoY. The total value attributed to mortgage transactions reached QAR24.8 billion, reflecting a significant increase of 168 percent compared to the same period last year.

• Approximately 12,000 apartment rental contracts were signed during Q4 2024, measuring a decline of 21.3 percent yearly. New agreements accounted for 93 percent of the total leases.

• Approximately 4,800 lease agreements were finalized for villas, reflecting a 5.3 percent YoY decline, with 86 percent comprising new contracts.

Office

• Average monthly rents stabilized on a quarterly basis at QAR66 per sq m while reducing by 1.5 percent YoY.
• An estimated 170,000 sq m GLA was expected to be added during the fourth quarter, however, construction delays have pushed the completion dates to 2025.

Retail

• The total retail supply remained stable QoQ at 5.5 million sq m GLA since there were no major additions during the fourth quarter.
• The median monthly rent for shopping centers in Q4 2024 declined by 2 percent QoQ and 6 percent yearly.

Hotel

• The total hospitality stock estimated by Qatar Tourism was 39,828 keys. Sixty-seven percent of the total stock comprised 4 to 5-star hotels, whereas 7.5 percent was classified within the one to three-star segments.
• Average hotel occupancy was at 67 percent, an increase of 15 percent yearly.
• As of YTD December, the Average Daily Rate (ADR) was QAR428, an increase of 5 percent YoY. Meanwhile, the Revenue Per Available Room (RevPAR) was QAR285, marking a rise of 21 percent.
• The ADR for 5-star hotels was QAR602, while the ADR for 3 and 4-star hotels was QAR193 and QAR240, respectively.

Tourism

• In the fourth quarter, the total visitor count surpassed 5 million, reflecting a 25 percent YoY increase. Travelers from GCC nations accounted for 41 percent of the total.

Outlook FY 2025

Economy

• The year 2025 may see fewer rate cuts by the US Fed than initially anticipated, partly due to an expectation that inflation will not fall further than previously predicted.
• As per the IMF, Qatar’s real GDP growth is expected to increase by 2 percent in 2025 mainly due to the LNG expansion project and the rise in tourism.
• Qatar’s 2025 budget allocated 20 percent to health and education, with expenditures projected to remain under 5 percent compared to 2024. Salaries and wages are expected to increase by 10 percent, while revenues are anticipated to decline by 2.5 percent, including a 3.2 percent dip in oil and gas income.

Residential prices and rents

• Residential rental rates in Qatar’s real estate market are anticipated to stay steady across most locations in early 2025, with modest growth projected for premium properties in upscale areas.

Office prices and rents

• Due to the postponement of certain projects from Q4 2024 to 2025, the total office supply is estimated at 7.4 million sq m of GLA.
• Citywide rental averages are anticipated to experience a slight adjustment, with prime locations hosting Grade A offices likely to see a modest increase, while secondary areas may experience a decline in the coming year
• Dow Jones is expected to inaugurate their office in Qatar in 2025.

Retail

• Total retail supply for 2025 is projected at 5.8 million sq m of GLA, with 2.6 million sq m attributed to organized spaces and 3.2 million sq m to unorganized formats.
• The Qatar Outlet Village, scheduled to launch in 2025 on Qetaifan Island, will be the country’s first of its kind, offering over 100 international luxury retail stores.
• Centro Mall is slated to launch in 2025, offering approximately 20,000 sq m GLA.

Hotel

• Swissotel Corniche Park Towers, initially planned for a late 2024 launch, are now expected to commence operations in early 2025. Andaz Hotel West Bay is set to debut in Q1 2025, while The Doha Edition and Corinthia Hotel are also anticipated to welcome guests during the year. Collectively, these projects will introduce over 1,100 hotel keys to the market in 2025.

Tourism

• Qatar aims to welcome above 5 million tourists by 2025, projecting a 5 percent rise in visitor numbers.