Market correction seen across Qatar’s property market; rents continue to moderate: ValuStrat

Market correction seen across Qatar’s property market; rents continue to moderate: ValuStrat

Qatar - Market correction is seen across all rental sectors of Qatar's property market, researcher ValuStrat said and noted rents continue to moderate in the country.

In its first 2023 review of Qatar’s real estate market, ValuStrat noted that after witnessing sizeable rent growth last year, it has recorded “market correction” in all rental sectors of the property market in the country.

Average leasing rates in the residential, office, and retail segments declined compared to fourth quarter (Q4) 2022.

On the other hand, hotel average daily rates (ADRs) grew by 5% year-on-year (y-o-y). As a result, the ValuStrat Price Index (VPI), representing residential capital values, remained marginally stable.

ValuStrat's general manager (Qatar) Pawel Banach commented: "With the advent of 2023, we are observing a new phase of the real estate market in Qatar. After hosting one of the most significant global sporting events,

“Qatar is undergoing a period of adjustment. In all the sectors, there was a substantial expansion in terms of supply last year. Post-FIFA World Cup Qatar 2022, we have observed a fall in demand.

“The increase in oversupply is contributing to pervasive market corrections. As the overall real estate sector evolves in 2023, we are projecting the downward adjustments to continue, and the