Qatar has seen "significant" jump in residential sales, especially in Lusail, in the recent months after the government allowed the expatriates to purchase real estate in 10 zones, according to Cushman and Wakefield Qatar (CWQ).
In its fourth quarter report, CWQ said the country's residential market will be influenced by the FIFA World Cup as the Supreme Committee for Delivery and Legacy is expected to lease several apartments for one to five years from late 2021.
"Recent amendments to real estate ownership laws allowing non-Qataris to purchase real estate in 10 zones have significantly boosted the residential sales market in recent months," CWQ said in its latest report.
This has been most notable in Lusail where apartments in the Al Erkyah and Yasmeen districts have seen an increasing volume of sales, it said, adding demand for real estate sales has been boosted by expatriate purchasers, who can take advantage of the new ownership laws.
The laws provide owners with the permanent residency card privileges for property investment above QR3.65mn and the benefit of a residency permit without a sponsor for those spending more than QR730,000.
The release of apartments in Lusail for prices between QR800,000 and QR1.8mn are typically available with flexible payment plans, providing an opportunity to invest in property that had not been available to the same degree before 2019.
According to the Planning and Statistics Authority, there was a 25% increase in residential sales transactions in October and November 2020 compared to the same months in 2019.
As per the amendments, the 16 areas eligible for usufruct are Msheireb, Fareej Abdulaziz, Al Doha Al Jadeeda, Al Ghanim Alateeq, Al Rifa, Al Hitmi Al Ateeq, As Salatah, Bin Mahmoud 22, Bin Mahmoud 23, Roudet Al Khail, Al Mansoura, Bin Dirham, Al Najma, Umm Ghawlina, Al Khulaifat, Al Sadd, Al Mirqab Al Jadeed, Al Nasr, Doha International Airport.
The nine freehold areas are The West Bay, The Pearl, Al Khor resort, Al Dafna (areas no. 60 and 61), Onaiza, Lusail, Al Kharaej, and Jabal Thuaileb.
Highlighting that Qatar’s residential real estate market will be influenced by hosting the FIFA World Cup in 2022 on account of the Supreme Committee for Delivery and Legacy's Eskan leases; it said "the absorption of these apartments is likely to offset the increasing supply and support rental levels in the short to medium-term."
The Covid-19 related restrictions to international travel have stifled recruitment in Qatar, resulting in a drop in new demand for residential rental properties in 2020, CWQ said.
Finding that the increasing supply, and the interruption in demand, has seen rents stagnate in recent months, the report said the increase in affordability over recent years has helped to drive leasing activity as residents increasingly look to upgrade their accommodation.
The monthly rents for two-bedroom apartments on the Pearl-Qatar are now typically between QR9,500 and QR12,000, while rents for two-bedroom units in Al Sadd typically range from QR5,000 to QR6,500.
The rents for two-bedroom apartments in Fox Hills, Lusail now range from QR6,000 to QR7,500 per month.
"The increase in new supply has resulted in additional choice for tenants. Professionally managed apartment buildings with on-site facilities management are usually favoured ahead of individually owned units," it said.
In its fourth quarter report, CWQ said the country's residential market will be influenced by the FIFA World Cup as the Supreme Committee for Delivery and Legacy is expected to lease several apartments for one to five years from late 2021.
"Recent amendments to real estate ownership laws allowing non-Qataris to purchase real estate in 10 zones have significantly boosted the residential sales market in recent months," CWQ said in its latest report.
This has been most notable in Lusail where apartments in the Al Erkyah and Yasmeen districts have seen an increasing volume of sales, it said, adding demand for real estate sales has been boosted by expatriate purchasers, who can take advantage of the new ownership laws.
The laws provide owners with the permanent residency card privileges for property investment above QR3.65mn and the benefit of a residency permit without a sponsor for those spending more than QR730,000.
The release of apartments in Lusail for prices between QR800,000 and QR1.8mn are typically available with flexible payment plans, providing an opportunity to invest in property that had not been available to the same degree before 2019.
According to the Planning and Statistics Authority, there was a 25% increase in residential sales transactions in October and November 2020 compared to the same months in 2019.
As per the amendments, the 16 areas eligible for usufruct are Msheireb, Fareej Abdulaziz, Al Doha Al Jadeeda, Al Ghanim Alateeq, Al Rifa, Al Hitmi Al Ateeq, As Salatah, Bin Mahmoud 22, Bin Mahmoud 23, Roudet Al Khail, Al Mansoura, Bin Dirham, Al Najma, Umm Ghawlina, Al Khulaifat, Al Sadd, Al Mirqab Al Jadeed, Al Nasr, Doha International Airport.
The nine freehold areas are The West Bay, The Pearl, Al Khor resort, Al Dafna (areas no. 60 and 61), Onaiza, Lusail, Al Kharaej, and Jabal Thuaileb.
Highlighting that Qatar’s residential real estate market will be influenced by hosting the FIFA World Cup in 2022 on account of the Supreme Committee for Delivery and Legacy's Eskan leases; it said "the absorption of these apartments is likely to offset the increasing supply and support rental levels in the short to medium-term."
The Covid-19 related restrictions to international travel have stifled recruitment in Qatar, resulting in a drop in new demand for residential rental properties in 2020, CWQ said.
Finding that the increasing supply, and the interruption in demand, has seen rents stagnate in recent months, the report said the increase in affordability over recent years has helped to drive leasing activity as residents increasingly look to upgrade their accommodation.
The monthly rents for two-bedroom apartments on the Pearl-Qatar are now typically between QR9,500 and QR12,000, while rents for two-bedroom units in Al Sadd typically range from QR5,000 to QR6,500.
The rents for two-bedroom apartments in Fox Hills, Lusail now range from QR6,000 to QR7,500 per month.
"The increase in new supply has resulted in additional choice for tenants. Professionally managed apartment buildings with on-site facilities management are usually favoured ahead of individually owned units," it said.