RIDUANUR QURESHI ASSOCIATE FINANCIAL ANALYST
REPORT FROM THE PEARL GATES The Pearl Qatar Secondary Market Q2, 2021 Qatar's real estate market saw a similar market trend in the second quarter of 2021 as it did in the first Q1. Investors continue to choose smaller units such as studio and one-bedroom apartments, while end users prefer two and three-bedroom apartments. In the second quarter, 142 units were offered for sale, a 27 percent increase over the previous quarter. In addition, projects such as Al Mutahidah Towers, which added a number of apartments and townhouses with high-end finishes and amenities, were completed in the second quarter. The secondary market at Pearl Qatar had about 142 units listed in the second quarter of 2021. In comparison to Q1, the total number of listed two and three bedroom apartments grew by 35%, while one and studio apartments increased by 21% and 9%, respectively. In Q2, a larger number of two-bedroom apartments were listed in the market, accounting for roughly 39% of total inventory. Furthermore, one-bedroom apartments account for 25% of total inventory, three-bedroom apartments for 19%, and studio apartments for 18%. On average, the stated price of a smaller ready apartment increased by 5%, while the price of a two-bedroom apartment fell by 2%, and the price of a three-bedroom apartment decreased by 6%. On the other hand, average and median selling prices for studio and one-bedroom apartments grew by 5% and 3%, respectively, since smaller units are in more demand on the market, while average sales prices for two and three bedrooms decreased by 1% and 6%, respectively. As the economy recovers from the epidemic and FIFA 2022 approaches, the real estate market in Qatar is projected to continue to rise. In the short to medium term, more foreign investment is expected. As new projects in the pearl Qatar are projected to be completed between 2021 and 2022, the value of older projects may depreciate slightly.
THE PEARL GATES
The Pearl Secondary Market Q2, 2021 The Pearl Q1
Q2
QoQ
23
25
9%
Average Price
1,153,291 QAR
1,211,878 QAR
5%
Median Price
1,150,000 QAR
1,200,000 QAR
4%
Average PSQm
17,743 QAR
16,158 QAR
-9%
Median Per/SQM
17,692 SQM
16,000 SQM
-10%
65 SQM
75 SQM
16%
Listed Units
Studio (Listed Inventory)
Average Size
There were 25 studio apartments for sale in the secondary market in the second quarter of 2021, up 9% from the first quarter. The average advertised price for a studio apartment was 1.21 million, with a median price of 1.2 million, increased by 5% and 4%, respectively. The average size of a studio apartment grew by 16 percent in Q2 as new studio apartments were listed with a larger size than in Q1. As a result, the average and median price per SQM both fell by 9% and 10%.
Q1
Q2
Listed Units Discount Rate
5%
5%
Average Price Average Price
1,099,783
Median Price Median Price
Studio (Sold Inventory)
350
16,920
Average Size Median Per/SQM
16,923
Average Size
0%
1,184,006 QAR
1,160,000
1,187,139 QAR
1,100,000
Average PSQm Average PSQm
QoQ
1,135,000
13,156 QAR
15,467
90 SQM
65
5% 3% -9%
15,133
-11%
75
15%
In Q2 and Q1, studio apartments were in strong demand in the secondary market due to their excellent return on investment. The average sold price of a studio apartment is 1.16 million QAR, and the median price is 1.135 million QAR, increased by 5% and 3% from the previous quarter. In comparison to Q1, the average sold price per SQM and median sold price per SQM dropped by 9% and 11%. Apartment owners were also considering a 5% reduction in the asking price, which was unchanged from the previous quarter.
Studio (Listed Inventory)
25,000
Q1
Q2
Studio (Sold Inventory)
2,000,000
20,000
25,000
Q1
Q2
2,000,000
20,000 1,500,000
15,000
10,000
1,000,000
5,000
1,500,000
15,000
10,000
1,000,000
5,000 0
0 Average PSQm
0
0
Average Price
Average PSQm
THE PEARL GATES
Average Price
The Pearl Secondary Market Q2, 2021 The Pearl Q2
Q1 Listed Units Listed Unit
One Bedroom (Listed Inventory)
350
35
29
Average Price Average Price
1,540,313
Median Price Median Price
1,508,455
Average PSQm Average PSQm
12,836
Average Size Median Per/SQM
12,570
Average Size
QoQ 21%
1,184,006 QAR
1,617,429
1,187,139 QAR
1,600,000
13,156 QAR
6% 7%
13,702
90 SQM
120
5%
13,190
5%
121
1%
In the second quarter, roughly 35 one-bedroom apartments were offered, with the secondary market increasing by 21%. The asking price of a one-bedroom apartment has risen in comparison to that of a studio apartment. The average posted one bedroom price was 1.61 million QAR, while the median price was 1.6 million QAR, rise by 5% and 6% respectively. The average listed price per SQM grew by 7%, the median price per SQM increased by 5%, and the average apartment size remained unchanged from the previous quarter at 121 SQM.
Q1
Q2
Listed Units Discount Rate
4%
4%
Average Price Average Price
1,476,905
Median Price Median Price
One Bedroom (Sold Inventory)
350
12,308
Average Size Median Per/SQM
12,083
Average Size
0%
1,184,006 QAR
1,550,000
1,187,139 QAR
1,450,000
Average PSQm Average PSQm
QoQ
1,500,000
13,156 QAR
12,778
90 SQM
120
5% 3% 4%
12,397
1%
121
1%
In Q2, one-bedroom apartments remained in higher demand, similar to studio apartments. As a consequence, the average and median sales prices climbed by 5% and 3%, respectively, as compared to Q1. The average price per SQM for Sold units was about 12,778 QAR, while the median price per SQM was 12,397 QAR, up 4% and 3% respectively. The discount rate for a one-bedroom apartment is at about 4%, as it was in Q1.
One Bedroom (Listed Inventory) 25,000
Q1
Q2
One Bedroom (Sold Inventory) 2,000,000
25,000
Q1
Q2
2,000,000
20,000
20,000 1,500,000
15,000
10,000
1,000,000
1,500,000
15,000
10,000
1,000,000
5,000
5,000 0
0 Average PSQm
0
0 Average PSQm
Average Price
THE PEARL GATES
Average Price
The Pearl Secondary Market Q2, 2021 The Pearl Q2
Q1
Average Price Average Price
55
2,357,232
1,187,139 QAR
2,400,000
Average PSQm Average PSQm
13,293
Average Size Median Per/SQM
13,260
Average Size
38%
1,184,006 QAR
2,406,063
Median Price Median Price
Two Bedroom (Listed Inventory)
350
40
Listed Unit
QoQ
2,300,000
13,156 QAR
12,924
90 SQM
181
-2% -4% -3%
12,610
-5%
121
1%
On Q2, a large number of two-bedroom apartments were for sale in the secondary market, accounting for about 39% of total inventory, similar to Q1. As a result, the average and median price of a two-bedroom apartment fell by 2% and 4%. In the second quarter, roughly 55 two-bedroom apartments were offered on the secondary market, a 38 percent rise over the first quarter. The average and median price per SQM were 12,924 QAR and 12,610 QAR, decreased by 3% and 5%.
Two Bedroom (Sold Inventory)
Q1
Q2
Listed Units Discount Rate
4%
3%
Average Price Average Price
2,302,632
Median Price Median Price
2,300,000
Average PSQm Average PSQm
12,722
Median Per/SQM
12,707
Average Size
QoQ
350
-25%
1,184,006 QAR
2,286,515
1,187,139 QAR
2,231,000
13,156 QAR
12,563
90 SQM
120
-1% -3% -1%
12,258
-4%
121
1%
Because there is greater supply on the secondary market, the average sales price has decreased in comparison to the previous quarter. The average sold price was about 2.28 million QAR, decreased by 1%, while the median sold price was 2.23 million QAR, down 4%. The average and median sales prices per SQM are about 12,563 and 12,258 QAR, respectively, with the discount rate decreased to 3%.
Two Bedroom (Listed Inventory) 25,000
Q1
Q2
Two Bedroom (Sold Inventory) 3,000,000
25,000
Q1
Q2
3,000,000
20,000
20,000 2,500,000
15,000
10,000
2,000,000
2,500,000
15,000
10,000
2,000,000
5,000
5,000 0
0 Average PSQm
0
0 Average PSQm
Average Price
THE PEARL GATES
Average Price
The Pearl Secondary Market Q2, 2021 The Pearl Q2
Q1
Average Price Average Price
27
3,210,333
1,187,139 QAR
3,200,000
Average PSQm Average PSQm
13,559
Average Size Median Per/SQM
12,698
Average Size
35%
1,184,006 QAR
3,416,864
Median Price Median Price
Three Bedroom (Listed Inventory)
350
20
Listed Unit
QoQ
3,100,000
13,156 QAR
12,639
90 SQM
252
-6% -3% -7%
12,205
-4%
254
1%
On the secondary market, around 27 three-bedroom apartments were offered, bringing the total inventory up by 35%. Although the advertised price for a three-bedroom apartment fell in Q2, the average price was about 3.2 million QAR and the median price was 3.1 million QAR, respectively dropped by 6% and 3%. The average and median price per square meter for these three bedroom apartments were 12,639 QAR and 12,205 QAR. The average size of these three bedroom apartments is 254 square meters.
Three Bedroom (Sold Inventory)
Q1
Q2
Listed Units Discount Rate
7%
5%
Average Price Average Price
3,198,485
Median Price Median Price
3,050,000
Average PSQm Average PSQm
12,692
Median Per/SQM
12,103
Average Size
QoQ
350
-28.57%
1,184,006 QAR
3,000,000
1,187,139 QAR
2,945,000
13,156 QAR
11,811
90 SQM
252
-6% -3% -7%
11,594
-4%
254
1%
Because there were more three-bedroom apartments on the market, the average sales price fell by 6% from Q1 to Q2. The average sales price fell by 6% to 3 million QAR, while the median price fell by 3% to 2.945 million QAR. The average and median price per SQM were also reduced by 7% and 4%, respectively, to 11,811QAR and 11,594 QAR. In Q2, the average discount price for three bedrooms dropped by 5%.
Three Bedroom (Listed Inventory) 25,000
Q1
Q2
Three Bedroom (Sold Inventory) 3,500,000
25,000
Q1
Q2
3,500,000
20,000
20,000 3,000,000
15,000
10,000
2,500,000
3,000,000
15,000
10,000
2,500,000
5,000
5,000 0
0 Average PSQm
0
0 Average PSQm
Average Price
THE PEARL GATES
Average Price
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