Residential sales jump by 50% year-on-year as prices soften in Qatar

• Value of residential sales in Qatar rose by 43.5% year-on-year to QAR 26.6bn in 2025
• Average villa and apartment prices down, but key communities outperform
• Grade-A office rents down 1.4% as prime locations draw demand away from non-prime submarkets

Doha | 27 January 2026: The total value of residential sales in Qatar rose by 43.5% year-on-year to QAR 26.6bn in 2025 against a backdrop of expanding supply and softening prices, according to the winter edition of the Qatar Real Estate Market Review from global property consultancy Knight Frank.

As in the first half of 2025, activity remained concentrated in key locations in Q4 2025, led by Doha recording 564 transactions with a combined value of QAR 2.4bn and Al Wakrah registering 387 transactions valued at QAR 895m.

At a neighbourhood level, villa prices increased by 6.5% in Al Dafna and by 5% in Al Kheesa in Q4 2025. This contrasted with Abu Hamour, which registered a 9.5% year-on-year decline despite commanding the highest average price (QAR 7,740 psm). Umm Salal Ali remained the most affordable villa market, averaging QAR 5,800 psm.

Across the country, apartment sale prices declined by 2% year-on-year, averaging QAR 12,865 psm. The Waterfront (QAR 15,265 psm) and Viva Bahriyah, The Pearl Island (QAR 14,630 psm) recorded the highest pricing, reflecting continued demand for premium waterfront living. Values were also well supported in Qanat Quartier (QAR 14,590 psm), while Porto Arabia, The Pearl Island (QAR 11,787 psm), remains a more affordable option within The Pearl.

Faisal Durrani, Partner – Head of Research, MENA, said: “Average villa prices fell by 1% during the 12 months to Q4 2025, reflecting a more competitive pricing environment as supply expands and buyers become increasingly value-led. Despite this moderation, prime locations remain resilient, supported by steady demand for premium schemes. Indeed, overall residential transaction activity strengthened in 2025, with the number of deals increasing by 50% year-on-year to 6,831.

“Although residential prices are softening, strong growth in transaction volumes highlights continued liquidity and demand in Qatar’s core residential markets and indicating stabilisation, rather than a market in retreat”.

Knight Frank’s analysis reveals that Al Dafna’s prime location close to Doha’s business hubs and the Corniche continues to fuel price growth, while in Lusail, Al Kheesa’s competitive pricing, strategic location and community feel is finding favour among value-conscious buyers.

Rental performance

A modest market correction saw the average villa rental rate decline by 2.4% to an average of QAR 12,985 per month in Q4 2025. Demand remains focused on prime communities, with West Bay Lagoon continuing to lead the market, averaging QAR 18,656 per month for a three-bedroom villa, rising to QAR 25,696 for five bedrooms.

In Q4 2025, apartment lease rates declined by 7%, although demand remains robust in established, lifestyle-led districts. The Pearl Island commands the highest rents, with average monthly rates of QAR 8,440 for one-bedroom, QAR 11,645 for two-bedroom and QAR 15,500 for three-bedroom apartments. Fox Hills is the most affordable option, with one-bedroom units averaging QAR 5,875 per month.

Adam Stewart, Partner – Head of Qatar, said: “Rental performance varies widely by location, and while the softening of average rates picked up pace in the final quarter of 2025, this does not tell the full story. Qatar’s residential rental market continues to be shaped by tenant demand for well-located, lifestyle-led communities, with pricing remaining strong for larger villas in established neighbourhoods. In the apartment market, standout performers The Pearl Island and West Bay continue to attract premium demand, with three-bedroom units commanding an average of QAR 15,500 and QAR 13,500 per month, respectively, reflecting pricing resilience in prime schemes.”

Flight to quality in the office market

Qatar’s office market saw grade-A rents ease by 1.4% in the 12 months to Q4 2025. The average rental rate now stands at QAR 90 psm per month, reflecting a more competitive leasing environment as supply expands and occupier requirements evolve.

Demand remains concentrated in prime locations, with West Bay – Prime achieving the highest rents at QAR 108 psm per month, followed by the Marina District at QAR 96 psm per month, and other districts in Lusail averaging QAR 90 psm per month. Performance in secondary areas continues to lag, with rents in locations such as the C/D Ring Road averaging QAR 68 psm per month, contributing to ongoing downward pressure across non-prime submarkets.

Stewart said: “Economic diversification in line with Qatar’s National Vision 2030 is supporting job growth and office demand, especially in the tech, green energy, and services sectors. These occupiers are increasingly seeking high-specification, modern buildings with advanced facilities, and we are seeing a clear shift towards prime locations in Doha and Lusail, pulling tenants away from older stock. This demand is also translating into rising interest in serviced offices and co-working spaces, especially from start-ups and SMEs seeking shorter lease terms and adaptable layouts.”

Lifestyle and leisure set the tone

Retail lease rates declined by 2.6% year-on-year in Q4 2025, averaging QAR 199 psm per month, reflecting ongoing repricing as occupiers remain selective.

Lifestyle retail continues to command the highest rents (QAR 265 psm per month), followed by prime malls (QAR 205 psm), underlining the strength of dominant, leisure-focused destinations. Meanwhile, secondary malls are facing challenges as newer lifestyle destinations such as Lusail Boulevard and The Pearl attract more tenants.

The growing popularity of Qatar’s experiential and leisure destinations is also reflected in rising tourist numbers. Arrivals increased to 5.09 million in 2025, up from 4.91 million in 2024, representing 4% year-on-year growth and reinforcing the ongoing recovery in travel demand following the dip that followed the unprecedented highs around the FIFA World Cup in 2022.

Supported by this rising demand, Qatar’s hotel performance strengthened over the year, with the average daily rate up 1.9% to QAR 443, occupancy increasing by 3.3% to 70.1%, and revenue per available room climbing by 5.3% to QAR 311. Quality supply stood at 42,555 keys at the end of 2025, with a further 2,126 rooms expected to be delivered in 2026, taking total supply to 44,681 keys. By 2028, total supply is forecast to reach 45,569 keys.

Amar Hussain, Associate Partner – Research, MENA, said: “Qatar’s retail sector, like others around the world is increasingly experience-led, with landlords and retailers placing greater emphasis on events, activations and pop-up concepts to drive footfall and strengthen dwell time, supporting leasing performance in well-positioned schemes. Demand is being further fuelled by Qatar’s expanding tourism base and the country’s growing appeal as a tourism destination, driven by enhanced infrastructure, global events and ongoing investments in hospitality and leisure.”