Market Performance: The Qatar residential market experienced a 5% year-on-year decline in both villa and apartment prices, reflecting shifting buyer sentiment and evolving market dynamics. Prime locations continued to hold high values due to steady demand for premium homes.
Villa Prices: Abu Hamour led with the highest villa prices at QAR 8,587 psm, driven by community appeal and smaller unit sizes. Al Thumama (QAR 7,500 psm) and Al Kheesa (QAR 7,000 psm) were key mid-tier locations, while Al Wakair (QAR 5,600 psm) and Al Kharaitiyat (QAR 5,807 psm) offered more affordable options.
Apartment Prices: Average apartment prices declined by 5% to QAR 12,625 psm. Qanat Quartier (QAR 13,977 psm) and The Waterfront (QAR 14,300 psm) commanded the highest prices due to strong demand for luxury waterfront living. The Marina District (QAR 13,600 psm) remained a prime location, while Porto Arabia and The Pearl Island (QAR 11,834 psm) provided more affordable options.
Mortgage Activity: Q4 2024 saw 294 mortgage transactions valued at QAR 24.8bn, a 168% year-on-year increase, possibly driven by opportunistic refinancing as interest rates declined from 6.25% to 5.1% year-on-year.
Residential Leasing Market
Villa Rentals: Average villa rental rates declined by 2.6% to QAR 15,875 per month. West Bay Lagoon maintained the highest villa rents, with 5-bedroom homes averaging QAR 28,850 per month.
Apartment Rentals: The apartment rental market remained stable, averaging QAR 7,990 per month. The Pearl led with 3-bedroom apartments averaging QAR 15,721 per month, driven by luxury appeal and waterfront location. Fox Hills offered more affordable options, with 1-bedroom apartments renting for QAR 5,113 per month.
Outlook: Villa rents were expected to stabilize in prime areas, while secondary locations may see further price adjustments due to softer demand. Apartment rentals remained strong in luxury developments like The Pearl and West Bay.
Office Market
Rental Trends: Grade A office rents declined by 2.3% over the past 12 months to QAR 90 psm, influenced by new supply, corporate consolidations, and evolving occupational strategies.
Prime Demand: Demand remained strong in prime districts like Msheireb Downtown and West Bay, driven by government leases and corporate expansions.
Rental Rates: West Bay-Prime commanded the highest rents at QAR 105 psm per month, followed by Marina District (QAR 97 psm). Secondary locations saw elevated vacancy rates (around 15%), contributing to downward rent pressure.
Hospitality Market Performance
Supply: Qatar’s hotel room supply stood at approximately 40,755 keys, with 60% internationally branded properties.
Visitors: Total visitors reached 5.08 million in 2024, a 25% increase from 4.05 million in 2023. December alone saw 594,079 visitors, a 14.6% year-on-year rise.
Performance Indicators: ADR increased by 7.9% to QAR 441, occupancy by 19.1% to 68.8%, and RevPAR grew by 28.5% to QAR 304.
Retail Market
Lease Rates: Average annual lease rates declined by 1.5% to QAR 204 psm, due to increased supply.
Prime Locations: Lifestyle retail developments in prime locations commanded the highest rents at QAR 243 psm, followed by lifestyle retail F&B at QAR 242 psm.
Outlook: Luxury and experience-driven retail maintained high occupancy despite rent adjustments. Secondary malls faced challenges due to competition from newer lifestyle destinations like Lusail Boulevard and The Pearl.
E-commerce: Online sales exceeded QAR 4.1bn in December 2024, a 32.2% year-on-year increase, posing a challenge for physical stores.
