Rents in Qatar fall as supply of residential units in the country picks up pace
The highs and lows of building rents in Doha has always been a fascinating topic of discussion among people living in the country. While there have been fluctuations in the market, the general trend is that of decreasing rents.
A new report by ValStrat Qatar has shown that the trend is likely to continue in the second half of 2017 as well.
According to ValuStrat Qatar, Qatar has seen some 500 new residential properties being added in the second quarter of this year, bringing the total supply to 281,500 units.
Approximately 80% of the expected supply during the quarter has been pushed to second half of the year, Gulf Times reported citing ValuStrat.
“The rate of decline in transaction prices for bungalows has slowed to 6% this quarter when compared to the previous year, while on a quarterly level, prices remained unchanged. Transaction volume increased annually for bungalows and residential buildings, however transaction volume declined quarterly, partially indicating that demand growth might have been offset by rise in borrowing costs,” said Anum Hasan, Market Research analyst at ValuStrat Doha.
Median monthly asking rents for villas and apartments declined 14% annually and 6% quarterly. However, Al Wakrah, Muaither, Al Aziziya and Freej Bin Mahmoud experienced stable rents. The fall in average rents can be attributed to a reduction in demand for high-end units in locations such as The Pearl and West Bay. This trend is expected to continue as more supply in this category comes into the market.
However, despite a deceleration in supply, office rents have struggled, recording a 10% annual decline and a 3.5% quarterly dip. An exception to this was office spaces in C and D Ring Roads, which saw a negligible quarterly change in median rents, ValuStrat said.
There had been earlier reports that house rents in Qatar would fall as much as 30% this year.
If you want to look for housing properties in Qatar, head over to our free classifieds section, which has a rich selection of properties to fit all budgets. Happy hosue hunting.
