QATAR REAL ESTATE MARKET TO FACE ANOTHER DIFFICULT YEAR IN 2018

Qatar real estate market is expected to head for another difficult year in 2018. Lack of demand, coupled with plentiful supply will most probably result in the continuous fall of rental and sale prices. Experts expect that the prices will start stabilizing towards the third quarter of 2018 though.

The slow population growth in the country and the oversupply in the real estate market had a negative impact on the residential rental sector. Asking rental rates in primary residential locations have fallen by 15% over the past 12 months. The office rental market is not doing much better, as asking rental rates declined by 9% during the past 12 months.

Regarding the retail segment, rentals are mostly still in the same range for existing leased properties. However, experts believe that future rentals will be under pressure due to a strong pipeline of upcoming supply in 2018.

Qatar’s real estate price index, issued by Qatar Central Bank (QCB), has dropped 30 points over the last 12 months to 252.81 points in December 2017, from 282.82 points in January 2017, registering a 10.61% decline.

Yousef Helal, General Manager of real estate advisory at Mirage International property consultants, said that the real estate market in Qatar will continue to be under pressure in terms of rental and occupancy in the coming months, due to potential oversupply in the market coupled with limited demand. However, he expects that the market will start to stabilize by the second half of 2018.

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