House rents in Qatar declined by at least 15% since 2016, says new report
The number of houses coming onto Qatar’s market is getting higher all the time, and the rents are falling, says a new report on Qatar’s real estate market.
The report by ValuStrat, also stated that residential prices fell by nearly 12% compared to 2016 while the volume of transaction increased by more than 50%.
“This annual increase in transactions volume of residential units illustrates a positive response to falling prices,” stated the report.
On residential rents, the report reveals: “Compared to 2016, median monthly asking rents have declined by approximately 15% Year on Year (YoY) and 5% Quarter on Quarter (QoQ). Median asking villa rents decreased by 18% YoY and 8% QoQ while median asking rents for apartments declined by 15% YoY and 5% QoQ.”
The report by the real estate consultancy firm said that nearly 1,500 units comprising about 17% villas and 83% apartments have been added in Qatar in the first quarter of 2017. An estimated additional 5,800 units are expected to be added by the end of the year.
The total number of housing stock (villas, residential houses and apartments) was approximately 281,000 units by the end of 2016, according to The Peninsula.
A majority of the 1,500 units completed so far this year were concentrated in Lusail, The Pearl Qatar and Al Sadd. The 5,800 living units that are expected to be completes at the end of the year will include apartments in five buildings in The Pearl and 10 buildings in Lusail.
“This year’s Cityscape exhibition unveiled major off-plan residential projects such as Al Swida Village in Al Thumama (77 apartment buildings), Lusail Azure (serviced apartments and villas), Telal 2 in Lusail (luxury apartments), Millennium Apartments in The Pearl, Jumanah Tower 2 in The Pearl and Ezdan Oasis in Wukair (8,679 housing units). All the projects mentioned are expected to be completed by 2020,” said the ValuStrat report.
@sohail103 : No regulatory body required. Is there any regulatory body to increase the rent ? It is the demand so they increased. I still see the big real estate company advertised 8k on February , No Tenant. On march they reduced to 7.5K ,received 3 tenant out of 48 flat , until now only 9 tenants they received. Imagine if they had offered 6.5 k initially , it would have been filled. Now its a great loss for them as no tenant for 3 months but still they are not ready to reduce the rent.
Still expensive out there.
I remember 3BHK apartments used to be leased at QAR 1500/- per month in the heart of Doha !!
@Brit: Agree. But do you think not bringing them in is the solution? Doesn't the rent reduction help it to an extend?
I agree that you need your loved ones with you. I have seen too many cases though where expats have brought families and then caused themselves and their loved ones hardships by not being able to provide proper accomodation , schooling , lifestyle etc
@ Britexpat : It's just because he misses his family that much. Even by going through hardship, he tried to keep them with him at least for some months.
Now don't tell me some 'Molten Metal Theory' such as keep your family apart from work etc. For a long term life here, everyone needs their loved ones around.
Can this reduction be enforced? i don't think so.
With no regulatory body to ensure enforcement if reduction, all real state are free to choose with they will.
Therefore this news article means nothing to readers here? Or am i missing something obvious?
shafqat: this is what causes problems. Why put your family through such hardship
i know someone who have just 3K QAR monthly salary. he saved for couple of months and brought his family on visit visa in a 2500 rental bedroom.
Rents here really sucks...!
For more reduction will help us.
Most of the salary part is going for house rent.
Its real estate companies playing and making money.Poor Expats with low income has to suffer for running a family.Government needs to concentrate on controlling rent in a better manner so that more expats will be attracted to here,giving quality output for infrastructure as well as development.
See, for a studio in alkhor cost to 3100 ? What is reduced here ?
See the crazy price of single bedroom.
http://www.qatarliving.com/properties/apartment/advert/no-commission-furnished-semifurnished-3bedroom-very-big-apartment-old
Am paying 3100 for a studio in alkhor!!.
15% is not enough compared to our neighbor country KSA. There if we pay 2500 riyal, we get beautiful 2 bedroom house. But here, even we are paying 4500 for single bedroom.