Real Estate Deals in Qatar Rise to QR4.9bn in 1st Quarter

Real Estate Deals in Qatar Rise to QR4.9bn in 1st Quarter

Qatar’s real estate sector has delivered a remarkable performance in the first quarter of the year with total deals reaching near QR5bn. According to the Ministry of Justice data, the real estate transactions during the first three months of the current year reached QR4.9bn. 

The first quarter remained abuzz with deal making activity as total 1,251 transactions were recorded during January, February and March. The average size of real estate deals during the quarter was QR3.9m.

During March, total real estate deals worth QR1.5bn were signed. February witnessed the highest amount of deals as real estate transactions worth QR1.74bn were signed during the month while in January deals worth QR1.66bn were signed.

The momentum of growth in the country’s real estate sector is likely to get stronger during the year. With the FIFA World Cup Qatar 2022 approaching near, the demand for housing units, office spaces, hotel rooms has already begun to rise. Companies have expanded activities which have created additional demand for commercial and residential spaces. Anticipating the high demand due to the mega event, real estate companies have launched new projects. 

Ezdan Real Estate Company has announced to launch over 4,000 residential units by the end of this year. Spread over eight residential compounds in Al Wakra and Al Wukair, these housing units will boost the supply of housing units in Qatar’s real estate market.

The rents of residential units have also edged up in the past few months. Demand for office spaces has also risen as companies are opening new offices to expand their activities.

Qatar’s real estate sector managed to maintain growth momentum and attract investors during 2021, despite testing conditions created by the COVID-19 pandemic. The real estate sector saw deals worth over QR25bn in 2021 in 5,374 transactions, according to the Ministry of Justice data. The number of real estate transactions was up by 5 percent in 2021 compared to 5,116 transactions in 2020.

Nearly 4,800 residential units (including apartments and villas) were completed during 2021, according to a report released by Valustrat- a real estate consultancy firm. As many as 480 apartments were handed-over during the fourth quarter (Q4) of 2021 with the delivery of a tower in Abraj Bay on The Pearl and a residential tower in Lusail. 

The hospitality sector also remained buoyant in 2021. An estimated 1,980 room keys from eight hospitality properties were added during last year. Steigenberger Hotel Doha (with 206 rooms) and Zulal Wellness Resort (with 180 rooms) were unveiled during the last quarter of 2021.

The office space supply has increased significantly in the last quarter of 2021. With the entry of new companies in the local market, the demand for office space is expected to recover in the current year.

Source:Ministry of Justice