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Qatar’s Total Mortgage Transactions Reach QR6.8bn in Third Quarter: ValuStrat
2024-11-28

Qatar’s Total Mortgage Transactions Reach QR6.8bn in Third Quarter: ValuStrat

Total mortgage transactions in Qatar reached QR6.8bn during the third quarter (Q3) of 2024, according to researcher ValuStrat.

This reflects an increase of 7.9% compared to the same period last year.

In the third quarter, Qatar’s real estate market witnessed some 227 mortgage transactions across all asset classes of ready properties, a decrease of 8.5% year-on-year (YoY).

Doha Municipality contributed to the highest number of mortgage transactions with 90 contracts valued at QR4.6bn, followed by 69 deals in Al Rayyan amounting to QR1.6bn.

In its latest report, ValuStrat noted that total residential stock in Qatar during the third quarter (Q3) of the year was approximately 396,000 units, with apartments accounting for 248,000 and villas totalling 148,000.

An estimated 410 housing units were delivered during the quarter in the form of mid-rise residential buildings and standalone villas.

The 2024 supply forecast includes 7,000 apartments, notable projects include Corniche Park Towers (240), Thirty-Five Tower (245), Gewan Island (586), Fox Hills and Erkyah (570), and mixed developments in Doha (850).

Some 4,000 residences are anticipated to be delivered next year with approximately 40% concentrated in Lusail, ValuStrat noted.

In Q3, 2024, the volume of transactions for residential houses decreased by 18% quarter-on-quarter (QoQ) and 15% compared to last year.

The median ticket size of residential houses was QR2.6mn, down by 7% quarterly and 1.9% year-on-year (YoY).

Top transacted areas for residential houses was Al Wukair, Umm Qarn, Nuaija and Al Khor.

The Pearl Island and Al Qassar witnessed a jump of 18% in their total transaction value and a 28% increase in their volume QoQ.

The median monthly rental rate for residential apartments remained stable quarterly, but fell 4.7% YoY.

Median monthly lease value for apartments was QR6,000, observing no change since last quarter but declined by 5.5% yearly.

For one-bedroom apartments, the median monthly lease rate was QR5,000, for two-bedrooms QR6,250, and for a three-bedroom QR8,000.

Rents in West Bay and Lusail dropped by 3% and 5% respectively compared to the last quarter, ValuStrat noted.

Al Wukair, Al Mashaf, and Al Thumama cumulatively were the top contracted areas with 3,552 leases, measuring an increase of 12% since last quarter.

The median rent for villas increased by 1.1% QoQ and remained stable when compared to last year.

Rents in Al Duhail, Al Gharrafa, Al Waab, and Al Wakra measured a slight increase compared to last quarter.

The median monthly rate for a three-bedroom villa was QR11,750, for a four-bedroom villa QR12,250, and for a five-bedroom villa QR14,000.

More than 5,200 villa lease contracts were signed during Q3, 2024, which reflected an increase of 3.4% YoY.

New tenancies accounted for 93% of the total agreements.

Cumulatively, Soudan, Aziziya, Ghanim, and Murrah were the top rented areas with some 672 contracts, a jump of 27% since Q2, 2024, the report noted.

Anum Hassan, head of Research (Qatar) at ValuStrat noted, “The third quarter indicated continued stability across Qatar’s real estate market. While certain high-end areas experienced increased rental rates for larger bedroom units, the primary observation is that the market remained notably steady throughout the period.”

The ValuStrat Price Index held consistent with the prior quarter at 96.6 points and showed no significant annual shift. Benchmarked to a base of 100 points set in Q1, 2021, the apartment index registered at 97.5 points and villas at 96.3 points, with valuation prices in both categories showing no quarterly or yearly fluctuations.

She added, “While Q3 presented a stable real estate landscape, market signals suggest a measured outlook for the coming months, hinting at a mix of steady performance with selective areas of optimism.”
Source: GULF TIMES