File photo of Doha skyline used for representation.
The real estate market in Qatar continues to show signs of recovery. Around 4,900 residential units are expected to enter country’s realty market over the next six months, according to a report released by the real estate consultancy firm ValuStrat. Qatar’s real estate sector has added around 1,800 residential units during the April-June quarter of this year.
“4,900 units are planned to be handed-over during the remaining quarters of 2021,” said the Second Quarter Real Estate Market by ValuStrat. “The housing stock was approximately 306,515 units with the addition of 1,650 apartments and 150 villas during the quarter,” it added.
A total of 1,096 hotel rooms were added during the quarter as Cielo Hotel in Lusail, Bentley Luxury Hotel & Suites in West Bay, Banyan Tree Doha at La Cigale Mushaireb in Mushaireb and Marriot Executive Apartments City Centre Doha in West Bay were unveiled this quarter. Hyatt Residences West Bay was rebranded as Marriot Executive Apartments City Centre Doha. Due to lack of international tourists, occupancy of hotels has been driven by domestic visitors.
Despite slowdown in activity during Ramadan, transaction volumes of residential houses surged by 90 percent compared to same period in 2020 with a total value exceeding QR1.83bn. Al Khor, Kharaitiyat and Muaither had the highest volume of transactions of residential houses, as per the report.
Regarding the retail sector, the report said that Increasing leniency of restrictions and promotions offered by retailers and landlords of shopping malls have been observed to boost footfall this quarter.
During the second quarter 2021, The Pearl and West Bay Lagoon saw a huge increase in demand as volume and value of transactions went up 230 percent and 240 percent, respectively. A slowdown in the supply of villas is lessening the fall in rent of villas indicating potential stabilisation in the medium term.
At the end of 2020, the residential stock stood at 303,015 units with the addition of 530 units during the last quarter. The real estate sector of Qatar ended the year 2020 on an impressive note. The volume of real estate transactions during 2020 was QR31bn compared to QR22.8bn in 2019, according to the Ministry of Justice.
As of April 2021, 65 hotels were designated for travellers for quarantine upon return to Qatar. Domestic tourism has primarily led occupancy of hospitality properties with average occupancy during the first two months of 2021 was estimated at 56 percent, up 10 percent year-on-year. There was also a recovery in the Average Daily Rate (ADR) as hotels witnessed an increase of 26 percent compared to the same period last year.
