DOHA: Qatar’s real estate prices softened a bit during the final quarter of 2015 compared to the previous quarter, after hitting a record peak in November 2015.
The Qatar Central Bank’s (QCB) updated real estate price index released yesterday shows the country’s real estate value declined 2.6 percent to 292.0 points during the Q4, 15 from 299.8 points recorded during the previous quarter. However, the index surged 14.28 percent in Q4 year-on-year.
According to the central bank data, the country’s real estate price hit an all-time high of 310.4 points in November, after surging to 305.7 points in October and 299.8 points in September. The November figures show Qatar’s real estate value rose 17.84 percent during the month from a year ago.
Market watchers noted the value of real estate transactions were an all-time high in Qatar in 2015.
The real estate sector continues to remain as vibrant as ever and unaffected by the falling oil prices and is likely witness growth in future, they said.
A steady growth in population in Doha has increased the demand of low to mid-income bracket accommodation, and with rental prices stabilising in the prime residential market due to growing vacancy, there is a significant opportunity within the tertiary market sector, real estate services business firm DTZ said.
“These are interesting times for Qatar,” said DTZ Qatar’s new Residential Agency Head, Bashir Jama. “On one hand, developers have tended to be drawn towards the upper and prime housing sector, whereas the real opportunity presents itself in the demand/supply gap in the lower end of the housing market. The difficulty is the price of land; developers focus on the higher end markets as the high-end market is perceived to provide higher returns.”
“We are accustomed to market fluctuations in the ten years that we have been present in Qatar. The country’s landscape has changed immensely since our market entry and there remains a huge opportunity within the Real Estate market, as the population continues to surge. The market must be allowed to reconcile these changes, which will encourage the private sector to provide sustainable solutions”, Edd Brookes, General Manager of DTZ Qatar said yesterday.
Rents for three-bedrooms in Doha’s prime residential market have stabilised at QR 19,500 by the third quarter of 2015, which is the same price as the previous year. Two-bedroom apartments in this market segment have also remained steady at QR 15,500 between 2014 and 2015, according to DTZ.
