Qatar Real Estate News
Qatar housing rentals stable in fourth quarter of 2011
Qatar residential rental rates were broadly stable across all locations in the fourth quarter of last year. With increasing demand, the number of transactions grew, revealed Asteco, the leading property consultancy, in its latest report.
Rents are likely to remain stable in 2012, except for marginal increases, but, demand will continue to grow. Meanwhile, supply is likely to surpass demand, and the demand-supply gap will narrow down towards end of the year.
The performance of Qatar real estate sector will be similar to that in 2011, with sales prices and rental rates continuing to remain flat, said Jed Wolfe, Managing Director, Asteco, Qatar.
Although 2011 was the third consecutive year of global downturn experienced by GCC market, Qatar property sector performed comparatively well, with pricing stabilizing across all sectors, Wolfe said.
Rental rates for a double bedroom apartment were QR6,250 in the Pearl Qatar and QR13,000 at Al Sadd, in the fourth quarter. Small decline in rentals were noticed in West Bay locality, but largely due to a small number of transactions, rather than market trend. The good quality villa rentals ranged from QR23,000 to QR40,000 a month.
Demand has surpassed supply marginally, for prime villas, maintained to high international standards. Demand in Qatar is expected to be focused on prime locations such as West Bay.
The last quarter of 2011 also saw a marked increase in apartment sales transactions, indicating the return of investor confidence into the market. Transactions also occurred in secondary market by investors for distressed sales.
With prices having stabilized in the fourth quarter, there is strong evidence suggesting that prices have finally bottomed out, and will not fall further, Wolfe said.
Both Qataris and expatriates for freehold apartments were comparatively higher in the fourth quarter, than during the third quarter. This may lead to improved sales market in 2012.
Overall, the performance of real estate market are likely to improve this year, depending on whether the contracts are awarded for rail network, stadia or associated construction projects.
The fourth quarter also final lettings in Al Fardan Commercial Tower and Tornado Tower, two of the most prestigious office towers in West Bay. On the other hand, commercial office market remains oversupplied with several new developments approaching completion.
Posted on 18/1/2012