Qatar’s Real Estate Sales Exceed QR9 Billion in First Five Months of 2019

Published July 18th, 2019 - 08:45 GMT
Projected completion for the remaining quarters of 2019 has been adjusted to 9,000 units, 70% of which is planned for Lusail and The Pearl.
Projected completion for the remaining quarters of 2019 has been adjusted to 9,000 units, 70% of which is planned for Lusail and The Pearl. (Shutterstock)
Highlights
Residential rents and capital values softened, and office rents continued to cater to tenants.
Qatar’s real estate market has seen sales transaction volume getting accumulated to QR9.5bn in value during the first five months of 2019, according to research and consulting firm ValuStrat.

 
The second quarter 2019 review issued by ValuStrat reports a continuing correction phase where the rental market shows a noticeable weakening. Residential rents and capital values softened, and office rents continued to cater to tenants.

ValuStrat’s general manager (Qatar) Pawel Banach said, “Residential capital values have reduced, though the quarterly rate of decline has slowed. On the other hand, the rental market showed a relatively noticeable weakening, sector-wise rental rates continued to fall during the first half of 2019. This trend is expected to persist as oversupply will continue to favour tenants over landlords in the coming quarters. Consumers can take advantage of increasingly competitive prices and flexible payment plans available in Qatar. This coupled with government initiatives such as the introduction of freehold ownership law in the previous quarter could lead to more long-term investments by expatriates in Qatar.”

Residential asking rents declined 5.6% over 12 months up to Q2, 2019 and 1.5% since the first quarter of 2019, ValuStrat said.

An influx of supply has led to a fall in quarterly rents up to 3% in Al Mansoura, Lusail, Al Wakrah and The Pearl. Secondary apartment and villa locations such as Al Wakrah, Al Khor, Muraikh, Old Airport, Al Gharrafa and Umm Salal Mohammad experienced annual rental falls of up to 13%.

Qatar’s ValuStrat Price Index (VPI) a valuation-based index for residential capital values (100 points base set in Q1, 2016), stood at 72.8 points as of Q2 2019. Countrywide residential capital values declined by 16.5% compared to the same quarter two years ago, down 6.3% YoY and 0.8% QoQ.

The average capital value of a residential unit stood at QR8,132 per sq m. More specifically, apartments were QR11,888 per sq m and villas stood at QR6,262 per sq m.
In comparison to the previous quarter, apartment capital values softened by 0.4%, whereas villa values by 0.8%. Villas in Ain Khaled/Abu Hamour, Old Airport/Najma, Al Wakrah and Al Khor experienced quarterly depreciation of 1% to 3%.

Residential supply reached 294,700 units as of Q2, 2019 with the delivery of 1,700 apartments and villas in The Pearl, Lusail, Fereej Bin Mahmoud, Old Ghanim, Fereej Abdul Aziz, Musheireb, Al Dafna, Al Kheesa, Al Wajba and Umm Salal Ali. Projected completion for the remaining quarters of 2019 has been adjusted to 9,000 units, 70% of which is planned for Lusail and The Pearl, ValuStrat said.
By Pratap John

© Gulf Times Newspaper 2019

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