The rent for prime apartments in Qatar drop by 10%, says report

The rent for prime apartments in Qatar drop by 10%, says report

Spider Sense
By Spider Sense

For long, people in Qatar have been affected by an increase in the country’s cost of living. But now, there seems to be some cheer in the horizon.

In the first indicator of a downward trend, a new report by real estate firm DTZ Qatar found that rents of prime residential apartments in Qatar have dropped by up to 10% in the second quarter of 2016 over the same period last year.

DTZ Associate Director Johnny Archer said many prime apartments saw rents falling by QR1,000 to QR1,500, while rents of villas dropped by up to QR2,000-QR3,000 per month.

Archer attributed the fall in rents to increased vacancy rates in recent months as a large number of white-collar workers are leaving the country.

While the population of Qatar increased by some 9% over the past 12 months, the vast majority of new arrivals are made up of low-paid construction workers.

"While this has kept the tertiary sector buoyant, demand for prime and mid-range residential accommodations have dropped due to exit of a significant number of white- collar workers," he told Qatar Tribune.

Rental reductions were less evident for mid-range apartments and villas in the second quarter. He, however, said there may be a softening in rents in this segment in the third quarter as new supply comes to the market in areas such as Bin Mahmoud and Al Mansoura.

Prime residential apartment supply is also expected to increase significantly in the coming days, with more than 3,000 new housing units nearing completion in West Bay and The Pearl-Qatar.

It is likely that new supply will see rents continue to soften, reversing the trend of high increases experienced between 2011 and 2015.

Among many findings, the DTZ's research team has also identified reduction in Grade A office rents of between 10 and 15% since the start of the year with the majority of enquiries being made for space of less than 250sqm.

There has been a continious fall in demand for corporate residential lettings for apartment blocks and compounds with more companies now preferring to provide rental allowances rather than paying for employee accommodation.

By britexpat• 11 Aug 2016 11:33
britexpat

This is great news.. I wonder if Rizks will drop the prices at his "Rent by the hour" motel

By dingding• 11 Aug 2016 11:28
dingding

gasoline prices going up

By Molten Metal• 11 Aug 2016 08:46
Molten Metal

This 10% can be invested into the Good Mutual Funds schemes ......... which will get you 15-30 % per year ................. very good news .............................

Log in or register to post comments

More from Qatar Living

Qatar’s top beaches for water sports thrills

Qatar’s top beaches for water sports thrills

Let's dive into the best beaches in Qatar, where you can have a blast with water activities, sports and all around fun times.
Most Useful Apps In Qatar - Part Two

Most Useful Apps In Qatar - Part Two

This guide brings you the top apps that will simplify the use of government services in Qatar.
Most Useful Apps In Qatar - Part One

Most Useful Apps In Qatar - Part One

this guide presents the top must-have Qatar-based apps to help you navigate, dine, explore, access government services, and more in the country.
Winter is coming – Qatar’s seasonal adventures await!

Winter is coming – Qatar’s seasonal adventures await!

Qatar's winter months are brimming with unmissable experiences, from the AFC Asian Cup 2023 to the World Aquatics Championships Doha 2024 and a variety of outdoor adventures and cultural delights.
7 Days of Fun: One-Week Activity Plan for Kids

7 Days of Fun: One-Week Activity Plan for Kids

Stuck with a week-long holiday and bored kids? We've got a one week activity plan for fun, learning, and lasting memories.
Wallet-friendly Mango Sticky Rice restaurants that are delightful on a budget

Wallet-friendly Mango Sticky Rice restaurants that are delightful on a budget

Fasten your seatbelts and get ready for a sweet escape into the world of budget-friendly Mango Sticky Rice that's sure to satisfy both your cravings and your budget!
Places to enjoy Mango Sticky Rice in  high-end elegance

Places to enjoy Mango Sticky Rice in high-end elegance

Delve into a world of culinary luxury as we explore the upmarket hotels and fine dining restaurants serving exquisite Mango Sticky Rice.
Where to celebrate World Vegan Day in Qatar

Where to celebrate World Vegan Day in Qatar

Celebrate World Vegan Day with our list of vegan food outlets offering an array of delectable options, spanning from colorful salads to savory shawarma and indulgent desserts.