The average capital value of a residential unit in Qatar stood at QR7,914 per sq m (QR735 per sq ft) in the last quarter of 2019, according to research consultancy ValuStrat.
More specifically, apartments were at QR11,477 per sq m (QR1,066 per sq ft) and villas were at QR6,140 per sq m (QR570 per sq ft), it said in a report.
All the established freehold apartment locations monitored by the ValuStrat Price Index (VPI) saw quarterly value decreases ranging from 1% to 2%. For villas, five out of 13 clusters (Al Waab, Muaither, Al Thumama, Umm Salal Mohammad and Onaiza) witnessed no change in values compared to Q3, 2019. While the remaining clusters experienced drops of less than 2% QoQ.
Qatar’s VPI, a valuation-based index (100 points base set in Q1, 2016), which tracks change in capital values for a representative fixed basket of properties, showed an overall 5% annual fall in capital values for the residential sector, with a marginal quarterly decline of just 0.8%.
ValuStrat general manager (Qatar) Pawel Banach said, “Countrywide sales transaction volumes accumulated to QR22.7bn in value in 2019. In The Pearl and Al Qassar, transaction volumes increased by a staggering 72% during 2019, while total transaction value increased by 55% to QR2bn. Residential capital values have declined over a period of three years, however over the past two years the quarterly rate of decline slowed, from an average 2.4% in 2018 to a marginal 1.3% in 2019.
“Decelerating capital value declines indicate that the real estate market may reach a plateau in the coming quarters. This was most likely aided by increased availability of affordable payment plans and investor friendly government policies.”
According to ValuStrat, citywide residential asking rents declined 6% over the past 12 months and a negligible 1% since the third quarter of 2019. The highest annual falls for asking rents of up to 12% were experienced in Al Mansoura, Al Muntazah, Al Wakrah, Fereej Bin Mahmoud and Lusail. Villas in compounds in Duhail, Ain Khaled, Abu Hamour and Al Waab experienced highest fall in annual decrease in rents of up to 12%.
With an addition of 1,750 units during Q4, 2019, the total housing stock in Qatar was estimated at 297,650 units by end 2019.
Nearly 90% of the added supply comprised of apartments handed over in Lusail (Fox Hills, Al Kharaej and Marina District), The Pearl, Al Sadd and Al Mirqab. Projected completions for 2020 have been adjusted upwards to 10,000 units due to delayed deliveries from 2019.