Cycle – Trends, Data, and Analysis
Over the past decade, Qatar’s real estate market has undergone substantial shifts, influenced by macroeconomic factors, government policies, economic diversification initiatives, population growth, and landmark events such as the FIFA World Cup 2022. Analyzing the property cycle offers valuable insights into the market’s fluctuations and informs future projections.
The real estate market experienced a pattern with four recognizable stages.
Boom Period (2010-2014)
The growth phase from 2010 to 2014 was marked by robust population growth, infrastructure expansion, and economic diversification efforts. 03
2.2 million in 2014
Population Growth
1.8 million in 2012
25%-35% increase in
Residential Sales Prices
Demand for office spaces increased, driven by companies setting up operations in Doha.
Peak and Correction (2015-2017)
After reaching its highest point in 2015, the market started to slow down because of challenges in the broader economy. Sharp drop in oil prices from over $100 per barrel in 2014 to under $50 in 2015 resulted in a corresponding 10% -15% decline in property prices.
Price
Declined by 10% - 15%
Despite the market experiencing a downturn, ongoing residential and commercial development resulted in an oversupply situation, further exacerbating downward price pressure.
Downturn (2017-2021)
The period from 2017 to 2021 saw multiple market headwinds, including GCC Diplomatic Crisis in 2017 and Covid 19 impact, leading to a sustained downturn. A 20%-30% drop in prices were recorded from the 2015 peak, particularly in areas like Lusail, where prices decreased from QAR 14,000 to QAR 9,500 per square meter.
Recovery and Growth (2021-2022)
The lead-up to the 2022 FIFA World Cup and favorable government policies contributed to market recovery, followed by a stabilization phase. Qatar implemented regulations expanding areas for foreign ownership and offering residency options tied to property investments, which significantly enhanced investor confidence. Property prices began to stabilize, with certain locations like Lusail witnessing modest growth, reaching an average of QAR 10,500 per square meter by late 2021.
Post-World Cup Stabilization (2023-Present)
Following the World Cup, the market has entered a stabilization phase marked by moderate growth, targeted demand, and a focus on long-term strategic planning. The market remains stable with gradual price increases in key regions. Rental yields in prime areas continue to range between 6%-8%. Investors are concentrating on long-term value in areas with robust infrastructure, such as Lusail and The Pearl. The market is projected to sustain stable growth, emphasizing sustainable development, integrated infrastructure, and government-supported initiatives.
Property Cycle Overview: Average Price per Square Meter for Real Estate Properties (2020-2024)
Average Price per sqm for Real Estate properties over years Years
The average price per square meter experienced a notable surge in 2021, peaking at QAR 9,500. Following this peak, prices underwent a correction in 2022, declining to QAR 6,900. Since then, the market has stabilized, with prices remaining steady at approximately QAR 6,400 in 2023 and QAR 6,500 in 2024.
Property Cycle OverviewMunicipality wise price comparison
Al Rayyan and Doha consistently demonstrate higher average prices per square meter compared to other regions such as Al Sheehaniya and Umm Salal. The year 2021 experienced the highest price levels across most municipalities, suggesting a potential market peak during that period. Subsequent to this peak, a price correction appears to have taken place in 2022 and 2023.
Value of Sell Contracts
Municipality
Al Shamal
Al Khor
Umm Stal Doha
Al Rayyan
Al Wakra
Al Daayen
Al Shahaniya
The market reached its zenith in 2015, followed by a period of contraction in the ensuing years. Despite the overall market downturn, Doha continues to command the lion’s share of sell contract values, underscoring its role as the principal real estate market in Qatar. Other municipalities like Al Rayyan and Umm Salal have displayed intermittent growth and heightened activity. This could suggest a potential shift in investor interest or the emergence of new development prospects in these areas.
Property Cycle Overview- Residential property Analysis
Average Price per sqm of Residential Properties (2020)
Average Price per sqm of Residential Properties (2021)
Average Price per sqm of Residential Properties (2022)
Average Price per sqm of Residential Properties (2024)
Average Price per SQM
Property Cycle OverviewCommercial property Analysis
Al Shamal
Al Khor
Umm Salal
Al Daayan
Al Shahaniya
Ar Rayyan
Doha
Al Wakra
Property
Cycle OverviewVacant lands property Analysis Average Price per sqm of Vacant Lands from 2020 to 2024
Al Shamal
Al Khor
Umm Salal
Al Daayan
Al Shahaniya
Ar Rayyan
Doha
Al Wakra
Property Cycle Overview for the year 2024
Average Price per sqm by Month for the year 2024
January to March
• January: The year began with an average price of QAR 8,870 per sqm, the highest recorded in the analyzed period. This peak indicates strong initial market conditions.
• February: A 4% decline in average prices brought them down to QAR 8,533 per sqm. This decrease suggests the beginning of a market correction phase.
• March: The market experienced a sharp 13% drop, with average prices falling to QAR 7,424 per sqm. This significant reduction may be attributed to seasonal factors or a decrease in demand.
April to May
• April: Prices showed a recovery of 5%, rising to QAR 7,759 per sqm. This upturn indicates renewed buyer interest and market stabilization.
• May: The recovery continued with a 7% increase, stabilizing prices at QAR 8,326 per sqm. This stabilization reflects improved market confidence and sustained demand.
June to August
• June: The market faced another decline of 9%, with prices falling to QAR 7,607 per sqm. This drop suggests a return to market instability, potentially due to external economic factors or seasonal variations.
• July: Prices rebounded with an 11% increase, reaching QAR 8,426 per sqm. This rise indicates a temporary surge in demand and market optimism.
• August: Prices decreased once more by 13%, settling at QAR 7,304 per sqm. This further drop underscores ongoing market volatility and the need for cautious investment strategies.
Current Market Phase and Outlook
At present, Qatar’s property market is experiencing a phase of adjustment. The long-term outlook for the market remains favorable, supported by government initiatives, ongoing infrastructure development, and efforts toward economic diversification
THE PEARL GATES: QATAR’S REAL ESTATE EXCELLENCE
Based in Qatar, The Pearl Gates stands as a distinguished entity within the real estate industry, distinguished by a team of seasoned professionals united by a shared commitment to a core principle: understanding and addressing the evolving needs of the market with finesse, tact, and diplomacy—reflecting the brand’s unwavering values.
In a landscape where others may offer similar services, what sets us apart is the fusion of your unique experience with our unparalleled expertise. The insightful team at The Pearl Gates possesses an extensive wealth of Qatari real estate knowledge. As locals, we take pride in our dedicated approach, consistently delivering a comprehensive range of property services with genuine enthusiasm and a warm smile. Our mission is to elevate the real estate experience, ensuring that every interaction with us is marked by professionalism, integrity, and a commitment to exceeding your expectations.
Banyan Tree Residences at Doha Oasis,Core N & O, Floor-R1, Al Khaleej St, Doha | +974 5086 7771| contacts@thepearlgates.com | www.thepearlgates.com