Qatar’s residential supply will see some 4,900 units that will be handed over during the remaining quarters of 2021, researcher ValuStrat has said in a report.
The housing stock was approximately 306,515 units with the addition of some 1,650 apartments and 150 villas during the quarter, ValuStrat said in its quarterly report.
Apartment supply consisted of 1,650 units coming from projects handed over in Lusail (Fox Hills, Erkhyah and Marina District), The Pearl (Al Mutahidah Towers and Abraj Bay Tower 2), Al Dafna, Luqta (residential complex), Umm Ghuwailina and New Doha.
Major projects situated in The Pearl, Lusail and Al Khor were awarded during the quarter, and projected to add 575 units by the end of 2024.
Despite the slowdown in activity during Ramadan, transaction volumes of residential houses surged by 90% compared to the same period in 2020 with total value exceeding QR1.83bn.
Median transacted ticket size for houses was QR2.7mn, increased 8% annually and 1.2% quarterly.
Al Khor, Kharaitiyat and Muaither had the highest volume of transactions of residential houses and some 38 transactions were recorded for residential buildings, as Umm Ghuwailina and Fereej Abdel Aziz had the highest number of transactions.
During Q2, 2021, The Pearl and West Bay Lagoon saw a huge increase in demand as volume and value of transactions went up 230% and 240%, respectively, ValuStrat said.
Residential median asking rents declined marginally by 1.1% quarter-on-quarter (QoQ), 2.9% over six months, and 5.1% over a year.
Median monthly asking rent for apartments fell 1.2% QoQ and 5.3% YoY (year-on-year)
Two-bedroom apartment (QR7,000 per month) had the highest quarterly drop in median rent compared to other types of apartments.
A slowdown in the supply of villas is lessening the fall in rent of villas, indicating potential stabilisation in the medium term.
Median monthly asking rent fell trivially by 0.5% QoQ and 4% YoY.
The monthly rent for a typical three-bedroom villa was QR9,750, and compared to other type of villas, experienced the highest QoQ decline in rent.
Despite a continued influx of supply in The Pearl and Lusail, these areas have experienced a relatively softer annual decline in rents due to faster absorption rates compared to secondary locations, ValuStrat said.