tag

Qatar’s economic rebalancing towards consumer-facing and productivity enhancing sectors has "reshaped" employment landscape, leading to its realty sector become demand-driven rather than project-led, according to Knight Frank, an international independent property consultancy.While construction remains an important component of GDP (gross domestic product), its share has gradually declined from 13.4% in 2021 to 11.3% in 2024, as other sectors have gained in prominence, it said in a latest report. Output in accommodation and food services, arts and recreation, logistics, and real estate has expanded sharply since 2022, reflecting "Qatar’s successful effort to rebalance economic activity towards consumer-facing and productivity enhancing sectors", it said.This reorientation is also reshaping the employment landscape, with a growing proportion of jobs emerging in tourism, logistics, and digital services, according to Knight Frank. "As a result, the underlying fundamentals supporting the real estate market, from retail and hospitality to residential and commercial space, are becoming increasingly demand-driven rather than project-led," the report said.Frank highlighted that Qatar’s economic outlook remains "positive", underpinned by strong macroeconomic fundamentals, an expanding population, and a clear policy agenda centred on diversification and sustainability.Population growth is reinforcing domestic demand, it said, adding the number of residents aged 15 years and older has grown at a CAGR (compound annual growth rate) of 3.1% between 2022 and 2024, against just 0.9% in the preceding six years. "This expansion, combined with new long-term residency schemes such as the Mustaqel five-year visa, is fostering greater residential stability and supporting housing demand, particularly among skilled expatriates and entrepreneurs," it said.The continued execution of third National Development Strategy (2024–30) is expected to accelerate private sector participation, unlock new growth clusters in logistics, tourism, and digital services, and sustain long-term investor confidence, it said. "For the real estate sector, these dynamics translate into a supportive operating environment, steady demand for residential and hospitality assets, growing interest in industrial and logistics space, and a pipeline of mixed use projects, aligned with Qatar’s urban and economic transformation agenda," it said. Finding that strong fiscal management remains a cornerstone of Qatar’s resilience story; it said despite lower hydrocarbon prices in 2025, the government’s fiscal position remains comfortably above breakeven levels, with the IMF (International Monetary Fund) estimating a fiscal breakeven oil-equivalent price of $44.7 per barrel.Public debt has fallen from 72.6% of GDP in 2020 to 40.8% in 2024, and is projected to decline further by the end of 2025, reflecting pragmatic budgetary control and effective debt servicing strategies.

Qatar’s hospitality sector, the present supply of which stands at 41,463 rooms, is on track to reach a total of more than 44,500 keys by 2027 as the country’s tourism remains “buoyant”, according to Knight Frank, a London-based global property consultant.Qatar’s hospitality sector added 718 hotel rooms in the first half (H1) of 2025, taking total supply to 41,463 rooms. Approximately 60% of this supply consists of international branded hotels, Knight Frank said in its latest report.“Now recognised as a leading regional lifestyle and leisure destination, Qatar is on track to reach 44,562 hotel rooms by the end of 2027, in line with the government’s national tourism strategy,” it added.In terms of performance metrics, the hotel sector has remained broadly “stable” over the past 12 months, it said, adding occupancy rates edged up to 70.7%, a modest 0.3% year-on-year increase, indicating steady demand.The ADR (average daily rate), however, softened slightly by 0.2%, to QR454. Nevertheless, RevPAR (revenue per available room) increased by 2.9%, reaching QR321, “signalling moderate but sustained profitability” within the sector, according to Knight Frank.Finding that the supply of rooms continues to expand, though at a more measured pace than the pre-2022 FIFA World Cup years; it said after adding 718 rooms in the first half of 2025, following the 1,020 keys added in 2024, the total supply has now reached 41,463 rooms.Occupancy has continued to grow across all segments, despite a slight increase in supply, driven by demand from regional tourists and business travellers, said Oussama El Kadiri, Partner – Head of Hospitality, Tourism and Leisure Advisory, Knight Frank. The report said the midscale and upscale segments of the hotel market remain the most active, driven by solid demand from regional tourists and business travellers.Meanwhile, upcoming mega events and enhanced air connectivity - courtesy of Qatar Airways - continue to boost international tourism sentiment.Additionally, the country’s commitment to diversifying tourism experiences through luxury shopping destinations, cultural hubs like Msheireb and Katara, and the active promotion of MICE (meetings, incentives, conferences and exhibitions) is further solidifying its position as a competitive hospitality hub in the region, it said.The strong regional and international footfall underpins Qatar’s strategic goal to diversify its economy and expand its non-oil sectors, the report said.The hospitality sector continued to demonstrate resilience, although there has been a marginal 0.2% dip in international arrivals year-on-year as of June 2025.Total visitor numbers reached about 2.63mn, down slightly from 2.64mn the same period in 2024. Nevertheless, the broader tourism landscape “remains healthy”, following a significant 24.6% surge in visitors in 2024, reaching 5.05mn, up from 4mn in 2023, according to the report.“This surge can be attributed to Qatar’s expanding global air connectivity through Qatar Airways, increased regional promotional campaigns, and the continued development of cultural, retail, and sports tourism offerings,” Knight Frank said.

Qatar saw a robust 114% year-on-year increase in residential transactions in the second quarter (Q2), indicating growing confidence among investors on resilient performance across the country’s real estate sector, according to Knight Frank, a global property consultancy.In its latest Qatar real estate market review, Knight Frank said both transaction volumes and values in the residential sector posted strong year-on-year growth.There were 1,844 residential sales in Q2-2025, totalling QR9.23bn, representing a 114% increase compared with the same period last year."Momentum in Qatar’s residential market is building again following a period of subdued activity after the 2022 FIFA World Cup," said Faisal Durrani, Partner – Head of Research, Middle East and North Africa, Knight Frank.Doha, Al Daayen and Al Wakra were among the best-performing municipalities: Doha alone recorded QR3.85bn of transactions, up 126% year-on-year, while Al Daayen and Al Wakra posted increases of 164% and 127%, respectively.In terms of property values, the apartment sector led the way, with average sales prices increasing by 3.5% year-on-year to QR13,270 per sq m, the report said.The most expensive apartments were located in Lusail’s Waterfront district (QR15,131 per sq m) and Viva Bahriya on The Pearl Island (QR14,987 per sq m).At the other end of the market, Porto Arabia registered the lowest average apartment price at QR11,696 per sq m, offering relatively accessible options in a prime waterfront setting.Villas saw a slight dip in values, with average prices down 4% year-on-year to QR6,745 per sq m. Among the key districts, Abu Hamour recorded the highest average villa price at QR8,434 per sq m, while Al Wukair remained the most affordable option at QR5,667 per sq m.The residential land segment also experienced robust growth during Q2-2015, Knight Frank said.Renewed investor interest in land plots, driven by good long-term development prospects and relative affordability in emerging areas, delivered sales totalling QR2.16bn across 598 deals, up 85% year-on-year.Significant gains were observed in Umm Salal, where volumes increased by 218%, followed by Doha (134%) and Al Wakra (102%)."The increase in transaction volumes, rising apartment values, and strong land sales activity suggest growing confidence among investors and end-users," it said.While challenges such as high interest rates and legacy oversupply remain, it said Q2 has seen a positive shift in Qatar’s residential market dynamics.As the flow of new stock slows and infrastructure investments continue, particularly in Lusail and surrounding zones, "we anticipate a gradual recovery in the medium term, notwithstanding any potential impact from the regional tensions in late June, which may yet materialise in the data over the summer months," it said.Longer term, with plans underway by the authorities to submit a bid for the 2036 Summer Olympic Games, there may yet be further national infrastructure investment, which will sustain economic growth over the medium to long term and inject additional positive momentum into the economy.