Qatar’s property market has demonstrated resilience despite experiencing price adjustments across multiple sectors, according to Knight Frank’s biannual Qatar Real Estate Market Review.
The housing market recorded a 5 percent year-on-year decline in both villa and apartment sale prices, whilst prime locations continue to attract buyers seeking premium developments.
“Qatar’s housing market has experienced a prolonged period of softening prices over the past year, driven by a combination of interrelated factors. The extensive construction activity leading up to the FIFA 2022 World Cup significantly increased the housing supply. As a result, property values and rental rates have faced downward pressure, albeit some high-end neighbourhoods have continued to enjoy steady demand. Despite this market dynamic, mortgage activity has increased, with Q4 2024 recording 294 transactions valued at QAR 24.8 billion, a 168 percent jump year-on-year, signalling perhaps opportunistic refinancing activity, with purchasers capitalising on falling interest rates, which last year declined from 6.25 percent in January to 5.1 percent in December,” Faisal Durrani, Partner – Head of Research, MENA said.
Qatar mortgage transactions jump 168% despite property price decline
Abu Hamour emerged as the top-performing villa location with sale prices of QAR 8,587 per square metre, benefiting from smaller unit sizes and community appeal.
Mid-tier locations include Al Thumama (QAR 7,500 psm) and Al Kheesa (QAR 7,000 psm), whilst Al Wakair (QAR 5,600 psm) and Al Kharaitiyat (QAR 5,807 psm) offer more budget-friendly options.
The average villa rental rate fell by 2.6 percent over the past 12 months to QAR 15,875 per month. West Bay Lagoon commands the highest rents, with five-bedroom villas averaging QAR 28,850 per month.
Apartment sale prices also declined 5 percent year-on-year, averaging QAR 12,625 psm. Luxury waterfront developments continue to attract buyers, with The Waterfront (QAR 14,300 psm) and Qanat Quartier (QAR 13,977 psm) achieving the highest prices.
Marina District (QAR 13,600 psm) remains a sought-after location, whilst Porto Arabia (QAR 11,834 psm) provides a relatively more affordable option within The Pearl.
Knight Frank noted a two-tier market has emerged in the apartment rental sector. Whilst luxury residences maintain stable rental rates due to sustained demand, mid-range and budget-friendly apartments face challenges from market oversaturation, leading to increased competition among landlords and downward pressure on rental prices.
The apartment rental market remained stable overall, averaging QAR 7,990 per month. The Pearl recorded the highest rents for three-bedroom apartments at QAR 15,721 per month. More economical options exist in Fox Hills, where one-bedroom apartments average QAR 5,113 per month.
“Looking ahead, villa rental rates are expected to stabilise in prime areas, while secondary locations may see further adjustments due to softer demand. Apartment rentals in luxury developments such as The Pearl and West Bay are expected to remain stable, supported by steady occupancy levels,” Adam Stewart, Partner – Head of Qatar at Knight Frank added.
Qatar office rental rates fall 2.3% amid changing work patterns
The office market experienced a 2.3 percent decline in grade-A rents over the past year, bringing the average to QAR 90 psm per month.
“The decline in office lease rates reflects changing demand dynamics influenced by new supply, corporate consolidations and evolving workspace requirements. Despite this, prime districts such as Msheireb Downtown and West Bay continue to experience strong demand, driven by government leases and corporate expansions, resulting in tighter available office supply,” Stewart explained.
West Bay-Prime remains the most expensive office location with rents of QAR 105 psm per month, followed by Marina District at QAR 97 psm per month. Secondary locations continue to face high vacancy rates, putting downward pressure on rents.
Qatar’s retail sector saw a 1.5 percent annual decline in lease rates, with the average now at QAR 204 psm per month. Lifestyle retail prime locations command the highest rents at QAR 243 psm per month, closely followed by lifestyle retail F&B at QAR 242 psm per month.
Amar Hussain, Associate Partner – Research, ME, noted: “Luxury and experience-driven retail continue to perform well, with high-end malls maintaining strong occupancy levels despite rent adjustments. Meanwhile, secondary malls are facing challenges as newer lifestyle destinations such as Lusail Boulevard and The Pearl attract more tenants.”
E-commerce continues to reshape Qatar’s retail landscape, with online sales exceeding QAR 4.1 billion in December 2024, a 32.2 percent year-on-year increase.
The hospitality sector stands out as a strong performer following the FIFA World Cup. By the end of H2 2024, Qatar’s total supply of quality hotel rooms reached approximately 40,755 keys, with internationally branded properties accounting for 60 percent of this inventory.
“Tourism has continued to flourish, with total visitor numbers reaching 5.08 million in 2024, a 25 percent increase from the 4.05 million recorded in 2023. December alone saw 594,079 visitors, marking a 14.6 percent year-on-year rise. This surge highlights Qatar’s growing appeal as a tourism destination, driven by enhanced infrastructure, global events and ongoing investments in hospitality and leisure,” Hussain concluded.
Hotel performance indicators showed significant improvement, with the average daily rate rising by 7.9 percent to QAR 441 and occupancy levels increasing by 19.1 percent to 68.8 percent. Consequently, revenue per available room grew by 28.5 percent to QAR 304.
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