Rental market demand outstripping supply in Qatar

The latest Qatar Real Estate Market Trends Report from Property Finder– the leading proptech company in Qatar– has identified a major uplift in rental demand in the first half of this year, which sees demand outstripping supply for the first time, while investments in apartments reached an all-time high.

Now in its 8th edition, available in full on the company’s website, the report includes key market insights from 16 local sector experts. It showcases how the limited supply has dictated price increases across all areas and all unit types, with Doha recording an H1 year-on-year uplift of 23 percent in average rental unit pricing and Al Khor witnessing a 38 percent price rise over the same period.

This demand shift is a result of Qatar’s imminent hosting of the 2022 FIFA World Cup. However, the report says the price rises are expected to be temporary and anticipates demand to slightly decrease next year, creating “a more stable price index for rental units.” Currently, demand for apartments – particularly short-term and serviced units – continues to rise.

Sales listings for Doha during the first half of 2022 on Property Finder Qatar’s website jumped 14 percent year-on-year, which resulted in a 27 percent increase per sqm in the advertised average price while those for Lusail rose 7 percent per sqm over the same time frame.

In the first half of 2022, rental rises were recorded for almost all areas in Qatar. Advertised median prices over the period were impacted by a significant fluctuation in the number of listings on Property Finder Qatar’s portal.

“Despite the fact that the market has not been able to find a steady price trend for apartments for sale, transactions continue to increase, especially as investments continue to reach an all-time high across Qatar’s various markets,” says the report.