12 November 2018
Real estate transactions worth QR17bn were signed in Qatar during the first nine months of 2018 indicating a 14% rise in volume compared to the same period last year, according to regional consulting firm ValuStrat.
In a recent report from ValuStrat, during the first nine months of 2018, real estate transactions worth QR17bn were signed, a 14% rise in volume compared to the same period last year.
ValuStrat reported that the increase in transactional volume and market corrections is expected to increase affordability and quality of delivered properties that could reinvigorate the market.
Residential unit prices fell because of rising supply, subdued population growth and increased borrowing costs. Weighted average value of a residential unit stood at QR8,434 per sqm. More specifically, apartments were QR12,208 per sqm and villas stood at QR6,555 per sqm, ValuStrat noted.
According to the consultancy, residential supply reached 288,735 units as of Q3, 2018 with the delivery of 635 apartments and villas in Al Mansoura, Lusail, Al Thumama/Al Wukair, Umm Salal and Al Sakhama.
Projected completions for 2018 have been reduced from 12,800 units to 10,600 due to delayed deliveries. With the addition of 26,000 sqm gross leasable area (GLA) during Q3, 2018, office supply reached a total of 4mn sqm of leasable space.
Similarly, ValuStrat said “corrections have been observed” in the villa market.
“Villa yields this quarter fared better compared to apartments, as rental rates dropped at a slower rate than that of capital values. Areas such as Ain Khaled, Abu Hamour, Al Thumama, Al Dafna, Duhail and Al Wakrah saw average gross yields to increase to 4% from 3.6% since 2017,” said Anum Hasan, ValuStrat Market Research analyst.
Looking at the hospitality sector, ValuStrat says that the third quarter of this year ended with 26,170 hotel rooms as Al Najada Doha Hotel Apartments and Souq Al Wakrah Hotel were unveiled.
“Market corrections continue this quarter as rents and prices continue to fall due to oversupply prevalent across all sectors. It is expected that increasing affordability and quality of delivered properties could reinvigorate the market. “As we approach the end of 2018, we expect the market to reveal additional investment opportunities due to various regulatory incentives announced by the government to attract foreign investment. This along with the completion of infrastructure developments to augment World Cup preparation is projected to aid Qatar’s real estate horizon to broaden in the medium term,” said ValuStrat Qatar general manager Pawel Banach.
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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