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.