STABLE RENTS: Qatar has not seen a similar fall in rents as other Gulf state such as the UAE. (Getty Images)

The economic downturn has seen rental rates for Qatari villas and apartments stabilise but not drop, a real estate company has claimed.

On Sunday, Asteco said with strong cash reserves at its disposal, the Qatari government has invested heavily in the country’s construction and property sectors.

The company made the comments after carrying out a study into Qatar’s real estate sector.

When discussing the findings, Asteco general manager David Oayda said: “We have seen a change in the market, whereas sales in off-the plans developments clearly dominated, we’ve now seen market caution translate into buyers actively seeking more high quality developments offering a good return for money.”

He added the Al Saad district, which has shopping centres, restaurants and supermarkets, was a popular area among expatriates.

To further stimulate Qatar’s property industry, the government is expected to introduce several new rules for nationals and expatriates.

Asteco said foreign property investors would be granted five year residency visas, while the government is set to announce its biggest budget for the 2009-2010 fiscal year, boosting investor confidence.

The government is also banking on the causeway between Bahrain and Qatar helping increasing demand for property.

Oayda said buyers should seek out long-term investments involving “quality properties at affordable prices”. He added cheaper apartments and villas would provide the best chance of a return in the economic crisis.