Satyendra Pathak
Doha
Qatar’s real estate sector recorded its strongest residential performance of the year in the fourth quarter of 2024, according to a report released by ValuStrat on Tuesday.
The ValuStrat Price Index for residential capital values remained stable both on a quarterly and annual basis at 96.6 points, compared to the base value of 100 points set in the first quarter of 2021.
The report highlighted a 1.3 percent quarter-on-quarter increase in apartment capital values, reaching QR10,430 per square meter, though values remained unchanged from the previous year. The Pearl Island saw a notable rise in sale rates, with values reaching QR10,650 per square meter, marking a 2.1 percent quarterly increase. Meanwhile, values in Lusail and West Bay Lagoon remained steady at QR10,160 and QR9,600 per square meter, respectively.
Villa prices remained stable on both a quarterly and annual basis, averaging QR5,500 per square meter, though there was a modest decline of 1.5 percent over two years. Specific areas witnessed fluctuations, with West Bay Lagoon and Al Dafna experiencing declines of 3.5 percent and 5 percent quarter-on-quarter, while Ain Khaled recorded a 2.2 percent increase. Prices across the other ten locations within the index remained unchanged from the previous quarter.
The price-to-rent ratio for The Pearl Island and West Bay Lagoon saw a slight decline, reflecting a marginal improvement in rental yields on a quarterly basis, while remaining steady at 19 years. The overall residential gross yield was stable at 5.9 percent, with apartments yielding 8.4 percent and villas at 4.6 percent.
In the four quarter of 2024, the report said, villa sales volume saw a substantial quarterly rise of 33.7 percent, while maintaining stability on an annual basis. The median ticket size for housing units was QR2.6 million, a decline of 1.9 percent QoQ and 3.7 percent YoY. The highest transaction activity was recorded in Doha and Al Rayyan. The Pearl Island and Al Qassar saw sales volume rise by 34.3 percent QoQ, leading to a 37.2 percentincrease in value.
The price-to-rent ratio for The Pearl Island and West Bay Lagoon edged lower, reflecting marginal rental improvements on a quarterly basis while remaining steady at 19 years. The overall residential gross yield remained stable at 5.9 percent, with apartments yielding 8.4 percent and villas at 4.6 percent.
In the fourth quarter of 2024, the Qatar real estate market witnessed 330 mortgage transactions across all asset classes of ready properties, an increase of 32 percent QoQ and 26 percent YoY.
The total value attributed to mortgage transactions reached QR25.2 billion during the quarter, reflecting a notable surge of 172.3 percent YoY. Doha recorded 95 deals worth QR16.4 billion, the highest transaction value in 5 years, while Al Rayyanommittee lowered the federal funds rate to a 4.25 percent to 4.5 percent range, aiming to stabilise prices and address employment saw 96 transactions totalling QR5.4 billion.
In the hospitality sector, the report said, Qatar is set to welcome over 1,200 new hotel keys in 2025, with the majority concentrated in the four-star and five-star segments. According to Qatar Tourism, the country’s total hospitality stock stood at 39,828 keys by the end of 2024. Of this total, 67 percent comprised four-star and five-star hotels, 7.5 percent fell within the one-star to three-star category, while the remaining 25.5 percent consisted of hotel apartments.
Several new hotels opened in the fourth quarter, including The OQ in Lusail’s Waterfront district, featuring 142 suites, West Walk Retaj in Al Waab with 265 rooms, and The Muse in Fox Hills South with 61 keys. The strong hospitality performance was fueled by record-breaking visitor numbers, which surpassed five million in the fourth quarter alone, reflecting a 25 percent year-on-year increase. Travellers from the GCC accounted for 41 percent of total arrivals.
Key hospitality metrics showed positive growth, with the Average Daily Rate (ADR) for 2024 reaching QR428, a 5 percent year-on-year increase. The Revenue Per Available Room (RevPAR) climbed 21 percent year-on-year to QR285.
Five-star hotels recorded an ADR of QR602, while three-star and four-star hotels registered ADRs of QR193 and QR240, respectively. Average hotel occupancy for the quarter stood at 67 percent, reflecting a 15 percent annual increase. A diverse calendar of events, including major sports tournaments, the Formula 1 Grand Prix, international concerts, business conferences, and local festivals, played a significant role in driving tourism and boosting hotel performance.
In the residential sector, total housing stock in Qatar reached 399,542 units by the end of 2024, consisting of 251,513 apartments and 148,029 villas. During the fourth quarter, approximately 3,000 new apartments and 100 villas were delivered.
Key residential additions included 930 units across The Pearl’s Giardino, Floresta, and La Plage South districts, along with 742 units in Lusail Marina. In the luxury segment, Qatari Diar launched new waterfront townhouses at The Seef, while Barwa Real Estate Group introduced the first phase of Barwa Hills in Lusail, featuring 57 one-bedroom units.
The industrial sector experienced some corrections, with rents for ambient warehouses and temperature-controlled facilities declining by 7 percent and 1.2 percent quarter-on-quarter, respectively.
However, the report said, government strategies aimed at enhancing sustainability and increasing support for small and medium enterprises (SMEs) are expected to strengthen the sector in the coming years.
“Overall, Qatar’s real estate market ended 2024 with measured resilience, driven by the strength of the residential, tourism, and hospitality sectors. While other segments experienced minor adjustments, the overall outlook remains optimistic heading into 2025,” the report said.
