Lifestyle retail sector stands out, while residential activity softens in Qatar’s property market

• Total residential sales volumes up 57% year-on-year, while deal volumes slip from QAR 9bn in Q2 to QAR 5.9bn in Q3 2025 
• International luxury brands and experiential tenants push up rents in lifestyle retail sector by 11%  
• Number of hotel rooms to increase to 45,000 by 2027 as mega events continue to drive tourism growth

Doha, Qatar | 18 November 2025: Qatar’s residential market enjoyed double-digit annual increases in both the value and volume of transactions in the third quarter of 2025, but this does mask a slowing in activity during Q3 2025, according to the autumn edition of the Qatar Real Estate Market Review from global property consultancy Knight Frank. 

The total number of residential sales jumped by 57% from 1,070 in Q3 2024 to 1,682 in Q3 2025, building on the 109% uplift seen in Q2 2025, when 1,799 sales were recorded. The total value of sales in Q3 was approximately QAR 5.9bn, reflecting a 43% annual increase and taking the total for the January to September period to QAR 197.4bn.  

Faisal Durrani, Partner – Head of Research, MENA, explained: “While there has been a slowing in transactional activity during Q3, the underlying drivers for residential demand in Qatar remain robust. A key indicator for this is the reduction in the contribution of the construction sector to GDP which stood at 11.3% at the end of 2024; down from 13.4% in 2021. The sector’s growth was catalysed by US$ 300bn in spending in the decade leading up the 2022 FIFA World Cup, but that is now abating, highlighting the diversified nature of the economy and that the drivers of growth and demand for real estate are shifting.  

“Demand for residential real estate is centred on completed communities, or those that offer a waterfront lifestyle, or are lifestyle-led. Overall, however, developers are moving to sustain and generate demand through incentives such as extended payment plans and property registration fee waivers.” 

Doha remained the dominant market during Q3, Knight Frank says, recording 559 transactions with a total value of QAR 2.2bn, an increase of 43% year-on-year. Al Rayyan followed, with 378 deals totalling QAR 1.83bn, up 61% on last year, reflecting heightened demand for family homes.  

However, Al Daayen witnessed the strongest growth, with transaction volumes up 118% between July and September, supported in part by developer-led incentives in Lusail’s emerging precincts.  

Adam Stewart, Partner – Head of Qatar, added: “Flexible payment plans, and government moves to boost home ownership and freehold investment are having a positive impact on the market. For instance, several new residential projects in Lusail are now offering seven-year, 0% instalments, while residency eligibility begins with property purchases of QAR 730,000 (US$ 200,000)”. 

LIFESTYLE RETAIL LEADS THE MARKET 

The growing attraction of aspirational living is also reflected in the country’s lifestyle retail developments, which continue to lead Qatar’s retail market. Average monthly rents for retail destinations that prioritise consumer experiences increased by 11% between Q3 2024 and Q3 2025 to QAR 268 psm, driven by the continued expansion of international luxury brands and experiential tenants.  

Monthly rents for food and beverage (F&B) outlets have also remained resilient over the past year, holding steady at QAR 228 psm. However, operators report tighter margins amid higher input costs and rising rents in prime dining clusters. 

Stewart said: “Several high-end fashion and jewellery concepts have launched new stores in Place Vendôme and Msheireb Downtown Doha this year, reinforcing Doha’s position as a luxury shopping destination. Our research shows this has emerged as a key USP for Qatar, especially among GCC HNWI. Meanwhile, major public initiatives such as Shop Qatar, Lusail Boulevard activations and sporting tournaments, including the Formula 1, and the FIFA U-17 World Cup continue to positively contribute to retail and F&B demand. 

“These events generate spikes in footfall, particularly across popular retail destinations such as Doha Festival City, Place Vendôme, and Msheireb Downtown, highlighting the powerful interrelationship of events, tourism and retail performance”. 

TOURISM AS A GROWTH DRIVER 

During the first eight months of 2025, international arrivals to Qatar reached 3.3 million, marking a 3.4% increase year-on-year. The GCC remained the dominant source of inbound tourism, representing 36.8% of total arrivals between January and August 2025. Europe, at 24.6%, and Asia, at 21.8%, also continued to serve as key international feeder markets.  

Amar Hussain, Associate Partner – Research, MENA, said: “As a result of the increased influx of tourists, the hotel performance indicators in Qatar have improved steadily over the past 12 months. Occupancy rates edged up to 69% in Q3, representing a 3.7% year-on-year increase. While the average daily rate softened slightly by 0.5% to QAR 429, revenue per available room rose by 3.1% to QAR 300 over the same period”.  

Hotel room supply continues to increase, with more than 1,300 keys added in 2024. This more measured growth follows an unparalleled increase in room numbers in 2022 when over 7,200 keys were delivered, equating to 18% of the existing supply at the time.  

As at the end of August 2025, the total quality room supply in Qatar stood at 41,750 keys, 60% of which comprised internationally branded rooms. By the end of 2027, Knight Frank forecasts quality room supply in Qatar will reach around 45,000 keys, 72% of which will fall in the luxury, upper-upscale and upscale category, up from 70% today.  

Durrani concluded: “Qatar is doubling down on mega events to drive tourism growth, using a year-round mix of sports, culture and technology to smooth seasonality and sustain visitor inflows. Building on the momentum of FIFA 2022, the calendar now spans flagship tournaments, cultural festivals and global business forums, such as Web Summit and MWC25 Doha. Plans are also beginning in earnest for a submission to the International Olympic Committee for the country to host the 2036 Summer Olympic Games. Together, these events reinforce Qatar’s positioning as a premier destination while deepening hotel demand, lengthening stays and broadening the visitor economy.”