Qatar Residential Real Estate Market

Residential real estate market in Qatar is estimated to register a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the influx of population and vast GDP growth, coupled with government policies and employment opportunities. The population in Qatar's was expected to cross 2.7 million by the end of 2019.

The primary market for residential units was expanded by Law No. 16 of 2018, which was executed in 2019. Initially, non-Qatari investors didn’t posses fixed holding rights; however, the law permits non-Qatari investors to purchase apartments in West Bay, Lusail, and Onaiza on a freehold title. Residential supply is observing rapid expansion throughout the market, with the realization of new villa compounds and apartment buildings The Tourism Authority in Qatar raised the number of visitors on a Y-o-Y basis. Rental drift in residential estate differ, on the grounds of units. Apartment supply is expected to be influenced by small units (one-bed units and studios). There has been an increase in the occupancy rates for well-located, prime compounds, owing to the demand for quality by tenants. The pipeline supply of compound villas is comparatively lower than that of apartments, if the demand rises further it may lead to rental expansion.

The contribution of real estate activities to the country's GDP during the first quarter of 2019 fell by 5.84% to QAR 9.68 billion, as compared to QAR 10.28 billion in the fourth quarter of 2018.

The Covid-19 pandemic had an unpleasant impact on the Residential real estate market in Qatar. The government barriers in tourism are the key factor impeding the market; however, the government’s steps and strategies have helped to neutralised the situation. This pandemic has encouraged the key players to implement advance technologies to overcome these challenges and expand the market growth.

Market Trends, Drivers, Restraints, and Opportunities

• The affordable and stabilized rates for rentals are estimated to drive the expansion of residential real estate market.
• The massive investment for World Cup 2022 is projected to drive the market growth of residential real estate market in Qatar.
• Rising population, urbanisation and employment opportunities are likely to spur the demand for residential real estate.
• The rapid growth in the range of malls, towers, communities, gated and luxury villas in the market are anticipated to propel the growth of residential real estate market during the forecast period.
• R&D investment and technological advancement in residential real estate market in Qatar are expected to offer lucrative opportunities for the market players.

Scope of the Report

The report on the residential real estate market in Qatar includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment insights

The villas segment is projected to constitute a large market share

Based on category, the residential real estate market in Qatar is segregated into condominiums, villas, and other types. The villas segment is expected to account for a key share of the market during the forecast period owing to stabilized rental rates and introduction of new and luxurious villas in the region. Rental activities in The Lusail and Pearl-Qatar have grown significantly, leading to various developments in the area. The Pearl-Qatar area is projected to have a large supply of one-bedroom units, thereby, widening the gap between one-bedroom and larger bedroom units.

Doha is expected to dominate the market

In terms of cities, the market is broadly classified into Doha, Al Wakrah, Al Rayyan and Umm Salal Muhammad. Doha is anticipated to expand at a robust CAGR during the forecast period. Stabilized rents for villas and increase in the occupancy rates for prime, well-located compounds, due to the demand for quality by tenants are anticipated to boost the market growth over the coming years.
 

Segments

Segments Covered in the Report
The Residential real estate market in Qatar has been segmented on the basis of:-
Category

• Condominiums
• Villas
• Other Types

Key Cities

• Doha
• Al Wakrah
• Al Rayyan
• Umm Salal Muhammad

Key Players

• Al Mana Real Estate
• United Development Company
• Qatari Diar Real Estate Company
• Ezdan Holding Group
• Barwa Real Estate

Competitive Landscape

Key players competing in the Residential real estate market in Qatar include Al Mana Real Estate, United Development Company, Qatari Diar Real Estate Company, Ezdan Holding Group and Barwa Real Estate.

Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instances,
In June 2019, towers 6 and 7 were developed in the Viva Bahriya district and towers 13 and 14 (Viva Bahriya) and tower 21 (Porto Arabia) were projected to launch in 2020. Furthermore, Abraj Quartier, five residential towers are likely to accomplish delivering more than 2,000 units in total. The residents are also attracted to Lusail’s Marina District, as it plans to open the first tower, which may, in turn, favor the growth of the market in the coming years.

In 2019, around 1,700 villas and apartments were added in Q2, bringing the total stock to 294,700 units by the end of the quarter. The supply of apartments encompasses 1,500 units from the delivered projects in The Lusail, Pearl, Fereej Bin Mahmoud, Fereej Abdul Aziz, Old Ghanim, Musheireb, and Al Dafna.