Mortgage activity surges by 168% in Q4 to QAR 24.8 billion

• Apartment rentals remain stable, with strong demand in The Pearl and budget-friendly options in Fox Hills. 

• Prime office space remains in demand, with Msheireb Downtown and West Bay benefiting from government leases and corporate expansions. 

• Hospitality sector thrives, with 5.08 million visitors in 2024, a 25% increase from 2023, boosting hotel performance. 

• E-commerce surges, with Q4 2024 online sales surpassing US$1 billion, up 43.5% year-on-year. 

Doha, 23 March 2025: Qatar’s real estate sector is proving resilient in the face of evolving market conditions. Despite a 5% year-on-year decline in villa and apartment sale prices, prime locations continue to command strong values, driven by demand for premium developments, according to Knight Frank’s biannual Qatar Real Estate Market Review.

Faisal Durrani, Partner – Head of Research, MENA, said: “Qatar’s housing market has experienced a prolonged period of softening prices over the past year, driven by a combination of interrelated factors. The extensive construction activity leading up to the FIFA 2022 World Cup significantly increased the housing supply. As a result, property values and rental rates have faced downward pressure, albeit some high-end neighbourhoods have continued to enjoy steady demand. Despite this market dynamic, mortgage activity has increased, with Q4 2024 recording 294 transactions valued at QAR 24.8 billion, a 168% jump year-on-year, signalling perhaps opportunistic refinancing activity, with purchasers capitalising on falling interest rates, which last year declined from 6.25% in January to 5.1% in December.”

Among villa locations, Abu Hamour recorded the highest sale prices at QAR 8,587 per square metre, thanks to its smaller unit sizes and strong community appeal. Mid-tier villa locations such as Al Thumama (QAR 7,500 psm) and Al Kheesa (QAR 7,000 psm) offer competitive pricing, while Al Wakair (QAR 5,600 psm) and Al Kharaitiyat (QAR 5,807 psm) present more affordable options.

Apartment sale prices also declined 5% year-on-year, averaging QAR 12,625 psm. Luxury waterfront developments continue to see high demand, with Qanat Quartier (QAR 13,977 psm) and The Waterfront (QAR 14,300 psm) leading the market. Marina District (QAR 13,600 psm) remains a prime location, while Porto Arabia on The Pearl Island (QAR 11,834 psm) offers a more affordable alternative within The Pearl.

TWO-TIER RESIDENTIAL RENTAL MARKET

In Qatar’s apartment market, luxury residences continue to command stable rental rates, supported by sustained demand for premium living spaces. However, a two-tier market has emerged, with mid-range and budget-friendly apartments facing challenges stemming from oversaturation. The abundance of available units in more affordable locations has intensified competition among landlords, ultimately driving down rental prices, says Knight Frank.

The average villa rental rate declined by 2.6% over the past 12 months to QAR 15,875 per month, with West Bay Lagoon leading the market, where five-bedroom villas average QAR 28,850 per month. The apartment rental market remained stable, averaging QAR 7,990 per month, with The Pearl commanding the highest rents for three-bedroom apartments, at QAR 15,721 per month. More affordable rental options are available in Fox Hills, where one-bedroom apartments average QAR 5,113 per month.

Adam Stewart, Partner – Head of Qatar, explained: “Looking ahead, villa rental rates are expected to stabilise in prime areas, while secondary locations may see further adjustments due to softer demand. Apartment rentals in luxury developments such as The Pearl and West Bay are expected to remain stable, supported by steady occupancy levels.”

OFFICE MARKET SOFTENS 

According to Knight Frank, the Qatar office market recorded a 2.3% decline in grade-A office rents over the past 12 months, bringing the average rental rate to QAR 90 psm per month.

Stewart continued: "The decline in office lease rates reflects changing demand dynamics influenced by new supply, corporate consolidations and evolving workspace requirements. Despite this, prime districts such as Msheireb Downtown and West Bay continue to experience strong demand, driven by government leases and corporate expansions, resulting in tighter available office supply.”

West Bay-Prime remains the most expensive office location, with rents of QAR 105 psm per month, followed by Marina District at QAR 97 psm per month, benefiting from its appeal to multinational firms and integration within Lusail’s commercial hub. However, vacancy rates in secondary locations remain elevated, exerting downward pressure on rents.

LIFESTYLE RETAIL PRIME LOCATIONS COMMAND THE HIGHEST RENTS

Elsewhere, Qatar’s retail sector saw a 1.5% annual decline in lease rates, bringing the average rental rate to QAR 204 psm per month. This trend reflects ongoing adjustments in rental pricing due to increased supply and evolving tenant preferences.

Lifestyle retail prime locations command the highest rents, at QAR 243 psm per month, while the lifestyle retail F&B sector follows closely at QAR 242 psm per month, underscoring the increasing demand for experiential dining and entertainment-driven retail.

Amar Hussain, Associate Partner – Research, ME, said: "Luxury and experience-driven retail continue to perform well, with high-end malls maintaining strong occupancy levels despite rent adjustments. Meanwhile, secondary malls are facing challenges as newer lifestyle destinations such as Lusail Boulevard and The Pearl attract more tenants. The rapid growth of e-commerce is reshaping the retail landscape, with Qatar’s online sales surpassing QAR 4.1 billion in December 2024, reflecting a 32.2% year-on-year increase."

HOSPITALITY SECTOR OUTPERFORMS 

The successful hosting of the FIFA World Cup has positioned Qatar as a key regional and global tourist destination. By the end of H2 2024, Qatar’s total supply of quality hotel rooms stood at approximately 40,755 keys, with internationally branded properties accounting for 60% of this inventory.

Hussain concluded: “Tourism has continued to flourish, with total visitor numbers reaching 5.08 million in 2024, a 25% increase from the 4.05 million recorded in 2023. December alone saw 594,079 visitors, marking a 14.6% year-on-year rise. This surge highlights Qatar’s growing appeal as a tourism destination, driven by enhanced infrastructure, global events and ongoing investments in hospitality and leisure.”

The increased influx of tourists has led to strong improvements in hotel performance indicators. The average daily rate (ADR) rose by 7.9% to QAR 441, while occupancy levels increased by 19.1% to 68.8%. As a result, revenue per available room (RevPAR) grew by 28.5% to QAR 304.