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Qatar’s prime rental market shows a steady 6.6% yield

The Marina District in Lusail reported an 8% yield for a 1-bedroom apartment and 9.2% for a 2-bedroom

Qatar’s prime rental market shows a steady 6.6% yield

According to hapondo, Qatar’s prime apartment rental market in areas like West Bay, Lusail, and The Pearl saw a steady gross rental yield of 6.6% in the fourth quarter of 2023. This indicates a healthy return on investment for property owners in these sought-after areas.

Analysts at the portal note that this indication of a healthy sign in the real estate market makes Qatar an attractive investment destination within the Gulf region.

The report notes that Marina District in Lusail recorded 8 per cent in yield for a 1-bedroom apartment and 9.2 per cent for a 2-bedroom, respectively. In the meantime, Qatar’s West Bay area stood at 7.6 per cent for one-bedroom apartments, while two-bedroom apartments recorded 7.9 per cent in yields.

On the other hand, the gross yield at The Pearl for one-bedroom apartments stood at 6.4 per cent, while two-bedroom apartments saw 6.1 per cent in yields.

However, hapondo states that Pearl Island is the most sought-after location for apartment seekers, followed by West Bay, and Fereej Bin Mahmoud. Fox Hills in Lusail witnessed downward pressure on average apartment rents in the fourth quarter of 2023.

Locations including Al Waab, Al Gharrafa, and Al Markhiya were the most popular locations for villa rental searches on hapondo’s list during Q4 2023. Al Thumama, Al Waab, Al Gharrafa, and Ain Khaled saw lower median rents in Q4, while median rents in Al Mamoura, Al Hilal, and Old Airport have become relatively expensive, the report said.

In terms of apartments for sale, median prices in Doha’s prime market remained stable for the one-bedroom category. There were more affordable options listed in the market for studio apartments in The Pearl and Lusail.

The report said: “Residential property transactions have kept Qatar’s real estate sector busy and buoyant in 2023, with a significant part of the year’s trading volume driven by demand for homes. A year after the FIFA World Cup Qatar 2022, Qatar’s residential real estate sector has proven to be resilient amid speculations of a slowdown that is natural after hosting mega-events.”

In 2023, the transaction volume in real estate decreased to QR16.7bn from QR21.2bn the previous year. Mortgage volume also saw a significant decline of 31 per cent, reaching QR45.6bn. Despite this, the Ministry of Justice reported an 82 per cent increase in the value of residential units sold, totalling QR2.75bn. Additionally, the average deal size per residential unit transaction rose by 26 per cent, from QR2.1m in 2022 to QR2.64m in 2023.

According to hapondo’s analysis, over half (56%) of trading volume in real estate was for villas and houses, with another 18% for residential units. Vacant land made up 37% of transaction volume, but 82% of land transactions were for villas and houses. This indicates a strong preference for these types of properties in the market.