Real estate dynamics in Qatar are adapting to regional challenges while laying structural foundations for future growth, according to a new market report.
Economic projections indicate a prospective real GDP contraction of 22.1% in 2026, largely driven by a 61.2% decline in oil-related activities alongside a modest 1.3% dip in non-oil sectors, Cushman & Wakefield’s ‘Marketbeat: Qatar Real Estate Market Overview Q3 2026’ revealed.
Despite broader macroeconomic headwinds, the state is advancing significant long-term capital investments to anchor its diversification strategy, the report stated.
“The government announced plans for approximately $38.5bn in infrastructure projects over the next five years, alongside an anticipated $22.5bn in private investment across the real estate and hospitality sectors,” noted the report. Government spending commitments remain firm, as officials recently announced operational budget reductions of up to 30% while explicitly safeguarding development projects.
“In August, the Qatari government announced precautionary reductions of up to 30% in operational expenditure in response to mounting fiscal pressures arising from the regional conflict. The measures exclude salaries and capital expenditure, with the government reaffirming its commitment to ongoing infrastructure and development projects,” the report stated.
In the corporate arena, high-grade office assets continue to show resilience, with prime leasing rates holding steady across major commercial centres. “Prime office rents have remained relatively resilient, with asking rents in Lusail and West Bay generally ranging from QR100-130 per sq m per month,” the report noted.
At the same time, commercial activity has been reinforced by international corporate expansions into local business hubs.
Residential transaction volumes moderated over the third quarter, dropping by 2.5% as seasonal factors slowed market velocity, the report stated, citing Ministry of Justice figures.
“The aggregate value of residential-classified transactions declined by 28.0% to approximately QR3.18bn. The slowdown coincided with the summer months, when activity typically softens due to seasonal travel,” the report pointed out.
To strengthen governance and boost buyer confidence, Qatar enacted Law No 11 of 2026 to regulate jointly owned properties through mandatory owners’ unions (homeowners association). Meanwhile, the hospitality sector recorded a positive turnaround as quarterly visitor arrivals surged nearly 40% to reach 864,000 (from 618,000 visitors in Q2).
“Monthly arrivals rose from 285,000 in July to 303,000 in August, before moderating to 276,000 in September. Despite this quarterly recovery, visitor arrivals remained below Q1 levels, when approximately 1.13mn visitors were recorded (largely in January and February),” the report continued.
The report stated, “Hotel occupancy improved throughout the quarter, with occupancy increasing from 56.6% in July to 59.6% in August and 61.5% in September.”
“In Q3 2026, Doha Festival City announced a major transformation programme involving up to QR400mn in combined landlord and retailer investment,” the report added.
