RIDUANUR QURESHI ASSOCIATE FINANCIAL ANALYST
REPORT FROM THE PEARL GATES The Pearl Qatar Secondary Market Q3, 2021 Qatar’s economy is recovering from the pandemic, Qatar’s real estate market has seen significant growth in Q3 2021. With more opportunities in the market and an increase in the influx of white-collar professionals, there may be a favorable uptake in demand for residential property in the short to medium term. Furthermore, rental prices in The Pearl and Lusail have increased significantly, attracting investors to the secondary market. According to the Qatar Central Bank's pricing index, the Qatar real estate price index achieved its highest position in Q3 since January 2020. In the third quarter of 2021, the average listing and sale price for apartments were quite similar to the second quarter. Despite this, the asking and selling prices for studio and three-bedroom apartments increased by 2% and 3%, as supplies decreased compared to the previous quarter. However, as more supply entered the market, the selling price for a two-bedroom apartment fell by 4%. Studio apartments had the highest asking and selling prices per square meter at 17,656 QAR and 16,774 QAR, respectively, while other apartments have an average price of 13,300 QAR. Additionally, the discount rate on the asking price remains the same as it was in Q2. On the third quarter, around 152 apartments were listed in the secondary market, a 7% rise over the second quarter. Total supply for one and two bedroom apartments climbed by 29% and 16%, while supply for studio and three bedroom apartments declined by 20% and 15%. Similar to the first and second quarters, there are more two-bedroom apartments for sale, 42 % of total inventory. Furthermore, one bedroom apartments have witnessed the most expansion in market supply, they represent 30% of total inventory, while three bedrooms and studio apartments account for 15% and 13% of the market supply.
THE PEARL GATES
The Pearl Secondary Market Q3, 2021 The Pearl Q2
Q3
QoQ
25
17
-32%
1,211,878 QAR
1,239,059 QAR
2%
16,158 QAR
17,656 QAR
9%
1,200,000 QAR
1,229,000 QAR
-2%
16,000 SQM
17,513 SQM
-9%
75 SQM
70 SQM
-6%
Listed Units Average Price Average Per/Sqm
Studio (Listed Inventory)
Median Price Median Per/SQM Average Size
On the third quarter of 2021, around 20 studio apartments were advertised for sale in the secondary market, a 20% decrease from the second quarter. Average listed and median price for studio apartment was 1.24 million and 1.23 million, which increase by 2%. The average size of newly listed studio apartments was roughly 70 Sqm, which was a considerably smaller size than the second quarter. In Q3, the average and mean price per square meter for studio apartments increased by 9%, reaching 17,656 QAR.
Listed Units Average Price Average Price Average Per/Sqm Median Price Median Price
Studio (Sold Inventory)
Q3
1,160,000
1,177,106
350
1,184,006 QAR
15,467
16,774
1,187,139 QAR
1,167,550
1,135,000
Average PSQm Median Per/Sqm
QoQ
Q2
13,156 QAR
16,637
15,133
Average Size Average Size
75
Discount Rate
5.00%
90 SQM
1% 8% -3% 10%
70
-6%
5.00%
0%
The sales price of a studio apartment increased marginally in Q3 due to stronger demand compared to supply. The average sales price and median price of a studio apartment grew by 1% and 3%, respectively, to 1.17 and 1.16 million. In addition, the average and median price per square meter for studio apartments climbed by 8% and 10%, respectively, while the average size of sold units declined by 6%. The average discount rate remains close to 5% of the total listing price of the property.
Studio (Listed Inventory)
25,000
Q2
Q3
Studio (Sold Inventory)
2,000,000
20,000
25,000
Q2
Q3
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 Q3, 2021 The Pearl Q3
Q2 Listed Units Listed Unit
One Bedroom (Listed Inventory)
350
45
35
Average Price Average Price Median Price Average Per/Sqm
1,632,226
1,187,139 QAR
13,702
13,256
13,156 QAR
1,600,000
Average Size Median Per/SQM
90 SQM
121
1% -3% 0%
1,595,000
13,190
Average Size
29%
1,184,006 QAR
1,617,429
Average PSQm Median Price
QoQ
12,953
-2%
123
2%
In Q3, there were around 45 one bedroom apartment listed for sale in the secondary market, increased by 29% compare to Q2. One bedroom apartment still remain high demand to the investor as it’s generate high return. As a result price for studio apartment remain similar to Q2, average and median listed price was around 1.63 million. Average size for one bedroom apartment was 123 Sqm, average and median price per/Sqm was around 13,256 QAR and 12,953 QAR.
Listed Units Average Price Average Price Average Per/Sqm Median Price Median Price
One Bedroom (Sold Inventory)
Q2
Q3
1,550,000
1,550,615
350
1,184,006 QAR
12,778
12,593
1,187,139 QAR
1,500,000
Average PSQm Median Per/SQM
1,515,250
13,156 QAR
12,397
Average Size Average Size
12,306
90 SQM
121
Discount Rate
QoQ
4.00%
0% -1% 1% -1%
123
2%
5.00%
25%
In Q3, the average and median sales price for a one-bedroom apartment were 1.55 million and 1.52 million, respectively, remaining consistent with the previous quarter. The average and median price per square meter were 12,593 QAR and 12,306 QAR, while the average size for a one-bedroom apartment was 123 Sqm. The average discount rate for a one-bedroom apartment grew to 5% in Q3 as the quantity of listings increased.
One Bedroom (Listed Inventory) 25,000
Q2
Q3
One Bedroom (Sold Inventory) 2,000,000
25,000
Q2
Q3
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 Q3, 2021 The Pearl Q3
Q2
Average Price Average Price
1,184,006 QAR
2,304,452
1,187,139 QAR
12,924
Average PSQm Median Price
13,536
13,156 QAR
2,300,000
Average Size Median Per/SQM
2,250,000 90 SQM
12,610
Average Size
16%
64
2,357,232
Median Price Average Per/Sqm
Two Bedroom (Listed Inventory)
350
55
Listed Unit
QoQ
182
-2% 5% -2%
13,216
5%
170
-7%
A significant number of one bedroom apartments were posted for sale on the secondary market, similar to the previous quarter. In Q3, the total number of advertised two-bedroom apartments climbed by 16%. The average and median listed price fell by 2% as additional supply entered the market; the average and median price per square meter were about 2.3 million and 2.25 million, respectively. The average size of a listed apartment was approximately 170 Sqm, a 7% reduction from Q2, Average, and median price per Sqm was around 13,536 Qar and 13,216 QAR.
Listed Units Average Price
Two Bedroom (Sold Inventory)
Q2
Q3
2,286,515
2,189,230
Average Price Average Per/Sqm Median Price Median Price
2,231,000
Average PSQm Median Per/SQM
12,258
350
1,184,006 QAR
12,563
Average Size
182
Discount Rate
3.00%
QoQ
12,878
1,187,139 QAR
2,092,500
13,156 QAR
12,309
90 SQM
-4% 3% -6% -0%
170
-7%
5.00%
67%
In Q3, average and median price of a two-bedroom apartment declined by 4% and 6%, due to a stronger supply of two-bedroom apartments in the secondary market. The average sold price was over 2.2 million, with a price per square meter of 12,878 QAR; the median sold price was around 2.1 million, with a price per square meter of 12,309 QAR. As more supply entered the market, the seller offered a higher discount rate of roughly 5% for a two-bedroom property.
Two Bedroom (Listed Inventory) 25,000
Q2
Q3
Two Bedroom (Sold Inventory) 3,000,000
25,000
Q2
Q3
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 Q3, 2021 The Pearl Q3
Q2
Average Price Average Price
23
3,303,043
1,187,139 QAR
12,639
Average PSQm Median Price
13,130
13,156 QAR
3,100,000
Average Size Median Per/SQM
3,250,000 90 SQM
12,205
Average Size
-15%
1,184,006 QAR
3,210,333
Median Price Average Per/Sqm
Three Bedroom (Listed Inventory)
350
27
Listed Unit
QoQ
254
3% 4% 5%
12,919
6%
252
-1%
The overall number of three-bedroom apartments declined by 15% in the third quarter compared to the second. In the third quarter, 23 apartments were advertised for sale, accounting for 15% of total inventory. The average and median price for a three-bedroom apartment were 3.3 million and 3.25 million, an increase of 3% and 5%. As a result, the average and median price per square meter climbed by 4% to 13,130 QAR and 6% to 12,919 QAR.
Listed Units Average Price Average Price Average Per/Sqm
Q3
3,000,000
3,104,861 1,184,006 QAR
12,342
1,187,139 QAR
2,945,000
Average PSQm Median Per/SQM
3,055,000
13,156 QAR
11,594
Average Size
254
Discount Rate
5.00%
QoQ
350
11,811
Median Price Median Price
Three Bedroom (Sold Inventory)
Q2
12,144
90 SQM
3% 4% 4% 5%
252
-1%
6.00%
20%
As supply in the secondary market dropped, the selling price of a three-bedroom apartment increased slightly. In comparison to the previous quarter, average selling and median prices increased by 3% to 3.1 million and 4% to 3.05 million. The average price per SQM climbed by 4% and 5%, while the average size was approximately 252 SQM and the average discount rate was around 6%.
Three Bedroom (Listed Inventory) 25,000
Q2
Q3
Three Bedroom (Sold Inventory) 3,500,000
25,000
Q2
Q3
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
Office Address #421, 42nd floor, Marriott Marquis, Omar Al Mukhtar Street, Area 61, Street #850, Doha P.O Box: 2550
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