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Qatar: Real estate shows steady growth in Q1

Doha, Qatar: Qatar’s real estate sector remained resilient in the first quarter (Q1) of 2025, according to the latest market review released by ValuStrat. The report highlighted market trends across residential, commercial, hospitality, and industrial, emphasising sustained investor interest.

Anum Hasan, Qatar’s Head of Research at ValuStrat, stated that the country’s property market showed signs of solid performance, supported by consistent residential values, increased mortgage activity, and steady leasing across commercial spaces.

“Qatar’s real estate market remained broadly stable in Q1 2025, supported by steady residential capital values, a rebound in mortgage lending, and continued leasing across commercial segments,” Hasan told The Peninsula.

Residential activity showed notable gains, with transaction volumes rising 13.2 percent from the previous quarter and a remarkable 67.1 percent year-on-year (YoY). While the total value of transactions grew 3.8 percent quarter-on-quarter (QoQ), it dipped 3.6 percent annually, with the average sale price sitting at QR2.7m. The Pearl Qatar and Al Qassar led the surge in activity, registering sales value growth of 54.3 percent and a 39.8 percent increase in transaction volume compared to the last quarter.

Mortgage transactions for ready properties climbed 37 percent year-on-year but slipped slightly by 2 percent on a quarterly basis. Doha remained the core market for lending, accounting for 95 mortgage deals worth a combined QR16.4bn.

The ValuStrat Price Index (VPI) for residential capital values held firm at 96.5 points. Median prices stood at QR10,420 per square metre for apartments and QR5,500 for villas. Gross rental yields averaged 5.9 percent , with apartments achieving 8.4 percent and villas 4.6 percent. Apartment rental rates held steady at QR6,000 monthly, while villa rentals averaged QR11,000.

Hasan stressed that “A key development in this quarter’s analysis was the introduction of the Office Rental ValuStrat Price Index, which is the country’s first dedicated benchmark for office rental performance.”

The office market also saw a boost in supply, with around 60,000 square metres of gross leasable area (GLA) added through developments such as Marina 31 in Lusail and Corniche Park Towers in West Bay. This pushed total office stock to 7.3 million square metres.

On the other hand, retail performance remained steady, with new entrants like Centro Mall and Outlet Village increasing total retail GLA to 2.5 million square metres.

The hospitality sector experienced a slight dip in tourist numbers, with 1.5 million arrivals in Q1 2025—a 6.7 percent decline YoY. GCC nationals made up 36 percent of total visitors.

Qatar’s hospitality inventory reached 40,787 keys, with 845 new rooms expected in 2025, primarily in the 4- and 5-star categories.

The Industrial sector momentum strengthened with a 32 percent YoY increase in new business licenses and over QR50m in investment certificate value.

“Q1 marked a relatively stable quarter for Qatar’s real estate market, underpinned by improving data visibility, firm residential fundamentals, and ongoing occupier interest across commercial sectors,” Hasan noted.

This stability comes at a time when regional markets are adjusting to post-World Cup economic normalization and shifting global interest rates.

Analysts believe that Qatar’s infrastructure investments, population growth, and policy support for non-hydrocarbon sectors continue to act as stabilizers.

The uptick in mortgage activity and resilient residential yields signal growing confidence among both end-users and institutional investors during the quarter.

The market expert further added, “We anticipate further seasonal adjustments in the coming months, particularly during the summer period, as the market continues to demonstrate resilience while adapting to evolving dynamics.”