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Qatar’s residential real estate market: Trends and triumphs in 2023

According to a report by ValuStrat, Qatar’s total number of residential properties hit 343,500 units by Q4 2023, with 795 new homes added in the last quarter

Qatar’s residential real estate market: Trends and triumphs in 2023

In 2023, approximately 11,000 residential units were delivered in Qatar out of an expected 12,500 for the year. Notable projects completed in the last quarter included Al Serdal and Al Kharaej residential buildings in Lusail. The total residential stock in the country reached 343,500 units by Q4 2023, with 795 homes added in the last quarter, according to a report by ValuStrat.

A significant number of residential units, over 2,200, are planned for completion in Q1 2024, with a large portion located in Pearl Island and Lusail. Residential sales in Qatar experienced a significant increase in 2023, with a 14% quarterly and 33% yearly growth in transactions. During Q4 2023, Doha, Al Rayyan, and Umm Salal recorded the highest volume of residential house transactions.

In 2023, Qatar witnessed a decrease in the number of residential building transactions, with 114 transactions representing a 31% decline compared to the previous year. The total value of these transactions also dropped by 19% to $378 million (QR1.4bn). However, there were notable increases in transaction values and volumes in certain areas, with Pearl Island and Al Qassar experiencing respective surges of 82% and 44% in 2023 compared to 2022.

In the fourth quarter of 2023, the ValuStrat Price Index (VPI) for the residential market remained stable every quarter but declined 1.7% annually to reach 64.1 points, compared to a 100-point base set in Q1, 2016.

The gross yield for residential units decreased slightly to 5.9% from 6.1%, with apartments contributing 8.2% and villas at 4.8%. The price-to-rent ratio also increased to 19 years, according to ValuStrat’s report.