Download Now: Qatar Real Estate Report Q2 2024

hapondo today launches its Q2 2024 report on Qatar’s real estate market, revealing trends in the commercial and residential sectors.

The report highlights the significant improvements in rents at the end of Q2 after a sluggish performance in the first quarter of the year.

According to hapondo’s latest analysis, several key Doha downtown neighborhoods saw stable 1-bedroom apartment rents and an even better 2-bedroom market in Q2, while villa rents increased faster in the latest quarter after a promising start in Q1.

Ahmad Al-Khanji, CEO and Co-Founder of hapondo said: “After a sharp decline of the Qatar Real Estate Price Index in the early part of the year, we have seen a much more vibrant property market in Q2 2024.”

He continues: “Prices made a positive U-turn in May and continued in June, recovering from the fall. Rents have improved specifically in the villa and the 2BR apartment market, with several neighborhoods seeing an uptick in prices. Interestingly, Fox Hills is showing green shoots.”

Apartment rents rebound

The average rent in the 1BR market rose in Fereej Bin Mahmoud (4.8%), Musheireb (6.6%), Old Airport (7.3%), and Al Mansoura (2.5%), while the market in Al Sadd, Najma, and Doha Jadeed remained stable. 

In the 2BR apartment category, the average rent increased in Najma (3.9%), Umm Ghuwailina (4.2%), Fereej Bin Mahmoud (4.4%), and Musheireb (2.2%), while it remained stable in Doha Jadeed and Old Airport.

Fox Hills shows stability

Although rents of the 1BR category in the prime neighborhoods (West Bay, Marina, The Pearl, and Fox Hills) faced downward pressure, 2BR rents were marked by either stability or marginal growth.

Interestingly, Fox Hills showed green shoots after several consecutive quarters of falling rents. The average 2BR rent in Fox Hills grew by 1.7%, while the average 1BR rent increased by a marginal 0.5%. The projected gross rental yield in Fox Hills increased slightly from 6.4% in Q1 to 6.5% in Q2.

Overall, the gross apartment rental yields in the prime markets remain considerable. According to hapondo’s data, West Bay offered the highest 1BR gross rental yield at 8.1% and was tied with Fox Hills in the 2BR category at 6.8% if one had bought and rented an apartment in Q2. Across Doha’s prime apartment market, gross rental yield averaged 6.3% in Q2.

Villa rental growth accelerates

Meanwhile, the average rent per sqm of villas in prime neighborhoods (West Bay Lagoon, Legtaifiya, and The Pearl) rose by 2.2% and that of non-prime villas by 5.7%.

The Pearl registered a significant increase of 17.7% in the average rent per sqm, evidence of the demand in prime locations that have pushed up prices of properties listed in the market. Other neighborhoods that registered significant villa rental growth include Old Airport (14.2%), Al Thumama (5.9%), and Al Mamoura (4.4%).

Office: Survival of the “fittest”

The report notes an increase in the supply of fully fitted office spaces in the market, driving down prices.

On the other hand, core-and-shell and semi-fitted weighted average office rates increased slightly in West Bay, while these categories saw lower asking rents in Lusail.