Qatar’s residential supply totalled 300,550 units in June: ValuStrat
September 12 2020 07:04 PM
The first quarter 2019 review issued by leading regional consulting firm ValuStrat reports the conti

Qatar’s residential supply totalled 300,550 units at the end of the first half in June, a new study has shown.

In the first six months of 2020 (H1, 2020), the country’s residential market saw the completion of 2,250 apartments and 700 villas scheduled to be handed over this year, global research and consultancy firm ValuStrat said.

An estimated 2,000 units were concentrated in Lusail, The Pearl and West Bay.

Approximately, 7,250 units are projected to be added during the remaining quarters of 2020, ValuStrat noted.

A “significant” amount of existing supply is being delivered in the form of medium to large size projects targeting upper-middle to high-income families. Demand is being generated by lower-middle income segments.

Moreover, as per ValuStrat estimates, the overall growth of demand isn’t matching the growth of supply. As of H1, 2020, ValuStrat estimates an oversupply of approximately 80,000 units.

As of Q2, 2020, ValuStrat Price Index for residential rental values softened 2.2% compared to Q1 2020, 2.6% compared to Q4, 2019 and 5.2% compared to Q2, 2019. Over a period of two years, residential rents fell 14%.

As of Q2, 2020, the median monthly asking rent for apartments was QR6,560, down 2.6% QoQ, 2.8% compared to last six months and 5.4% compared to Q2, 2019.

According to ValuStrat, three-bedroom apartments experienced the “highest asking rental declines” during H1, 2020 compared to Q4, 2019 and Q2, 2019.

The median monthly asking rent for villas was QR10,890 as of Q2, 2020, softening 0.5% QoQ, 1.0% compared to last six months and 3.7% compared to Q2, 2019.

Five-bedroom villas experienced the highest fall in asking rents compared to Q4, 2019 and Q2, 2019.

As per VPI for residential rental values, rents have not declined significantly during H1, 2020 and the fall in rents is in line with historical trend.

The highest fall in rents up to 2.5% for apartments during H1 2020, was experienced in prime locations – Al Sadd, The Pearl and West Bay compared to Q4, 2019.

The highest fall in rents for villas, up to 3% during H1 2020, was experienced in prime locations- Abu Hamour, Al Duhail, Al Gharrafa and Al Waab.

Typical incentives offered in the market were in the form of furnishing and utilities included in the rents or one/two month rent free periods (differing contract period), ValuStrat noted.

As of Q2, 2020, as per ValuStrat Price Index (VPI), average residential capital values was QR718 per sq ft (QR7,731 per sq m), fell by 1.4% QoQ, 1.9% compared to Q4, 2019 and 4.1% compared to Q2, 2019.

The average capital value for apartments was QR1,036 per sq ft (QR11,152 per sq m), reduced by 2.3% QoQ, 2.5% compared to the first six months of 2019 and 6% YoY.

The average capital value for villas was QR560 per sq ft (QR6,052 per sq m), declined by 1.2% QoQ, 1.8% compared to Q4, 2019 and 3.6% YoY, ValuStrat said.





There are no comments.

LEAVE A COMMENT Your email address will not be published. Required fields are marked*
MORE NEWS
Destination: Recovery date11/25/2020 6:13:09 PM

HAPPENING IN DOHAMore