15 January 2019
Welcome to the first edition of the Qatar newsletter for 2019. In this edition, we look at a recent report by ValuStrat, which revealed that residential supply reached 290,000 units as of Q4 2018 with the delivery of 1,265 apartments and villas. The consultancy group also revealed that 13,700 units are set to enter the residential market this year, releasing previous construction backlogs.
According to research and consultancy firm ValuStrat, residential supply reached 290,000 units as of Q4 2018 with the delivery of 1,265 apartments and villas in The Pearl, Lusail, Umm Salal, Duhail and New Salata. Projected completion for 2019 has been adjusted upwards from 10,600 units to 13,700 units releasing previous construction backlogs.
“Qatar’s real estate sector during the final quarter of 2018 witnessed a continuation of the tough trading conditions experienced in Q3, however, the rate of decline
continues to slow down.
“In 2019, we expect the market to continue to show resilience backed by additional foreign investment opportunities introduced by the government, robust public spending on construction and improvements in the non-hydrocarbon sector,” said Pawel Banach, ValuStrat General Manager (Qatar).
ValuStrat Market Research Analyst Anum Hasan said: “In 2018, overall gross yields remained relatively stable for all residential units. Residential performance of ‘The Pearl’ (for apartments) and ‘Al Wakrah’ (for villas) surpassed all other locations.
“Capital values of villas in Al Wakrah declined 19%, however, its rental values fell 7% causing gross yields to increase by 1%. In The Pearl, capital values and rents decreased by 8% and 5% respectively year-on-year. It will be interesting to see how interactions of capital values and rents will affect the yields in 2019.”
About Cityscape Qatar
Cityscape, the world’s leading real estate event portfolio for emerging markets, debuted in the State of Qatar in 2012. The annual event features an exhibition and numerous learning and networking features designed to stimulate the development of Qatar’s real estate industry.
Cityscape Qatar presents an unparalleled line up of opportunities for the local and regional real estate community, as the event allows delegates and visitors to engage in a dynamic environment that gives insight into the future of Qatari and Middle East real estate.
The exhibition showcases infrastructure development projects through Qatar’s National Vision 2030.
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