New report says real estate transactions fall by about 30% due to summer slowdown
Rental increases in Qatar slowed in the third quarter of 2012 while transactions fell by about 30 percent, according to a new report by Asteco.
The real estate consultancy said the slowdown during Q3 was due to the supply of new stock combined by Ramadan and the quieter summer months.
The report said that while most areas of Qatar slowed, the demand for apartments on the Pearl-Qatar development remain healthy in Q3.
Asteco also said that for the first time during this year the percentage of transactions for two- and three-bedroom apartments on the Pearl-Qatar outstripped those for one-beds.
Asteco research showed that about 50 percent of total deals were for two-beds compared to 34 percent and 38 percent in Q1 and Q2.
"The upward trend in take-up for larger units could be a signed of the evolving demographic at this location with an increase in couple and family lets. There is also reduced availability of one-bedroom apartments forcing some tenants to lease larger units," the Asteco report said.
It added that properties in prime locations with good quality finishing remained in high demand in Qatar.
Asteco also said this was reflected in the villa rental market where the demand for villas in upmarket locations has been "steady with a marginal increase in rents".
"Waiting lists for the best compounds have decreased slightly over Q3 but demand is expected to increase during Q4," the report added.
The level of sales during Q3 was low, Asteco said, with most investors still seeking units at the lowest distress prices.
Asteco said the recent reduction on the Pearl-Qatar had stimulated increased demand.