Qatar residential sales activity moderates as regional conflict weighs on market sentiment

• Residential transaction volumes declined 23% quarter-on-quarter to 1,582 deals in Q1 2026
• Total residential sales value reached QAR 6.2 billion during Q1 2026
• Mortgage values surged 85% year-on-year to QAR 17.2 billion despite softer transaction activity
• Hotel occupancy and visitor arrivals impacted by regional conflict and reduced flight activity

Doha | 10 June 2026: Qatar's residential property market experienced a moderation in activity during Q1 2026 as the regional conflict weighed on business confidence, investor sentiment and consumer decision-making, according to the latest Qatar Real Estate Market Review from global property consultancy Knight Frank.

Residential transaction volumes reached 1,582 during Q1 2026, representing a 23% decline compared to the 2,047 transactions recorded in Q4 2025. However, activity remained resilient on an annual basis, with transaction volumes increasing by 15% compared to Q1 2025.

The total value of residential sales reached approximately QAR 6.2 billion during the first quarter, down 15% quarter-on-quarter from QAR 7.2 billion in Q4 2025, reflecting the more cautious investment environment and softer buyer activity.

Doha remained the centre of residential market activity, recording 512 transactions with a combined value of approximately QAR 2.6 billion, while Al Rayyan ranked as the second most active municipality, with 280 transactions valued at QAR 1.38 billion.

Average villa prices declined by 3.5% year-on-year to QAR 6,626 per square metre, while apartment prices fell by 1.7% to QAR 13,049 per square metre. Despite broader market softening, prime waterfront locations continued to outperform, with The Waterfront recording average apartment prices of QAR 15,194 per square metre.

Faisal Durrani, Partner – Head of Research, MENA, said: "The first quarter of 2026 was shaped by a significant deterioration in regional sentiment, which naturally filtered through to Qatar's real estate market. The prolonged duration of the uncertainty surrounding the regional conflict is prolonging the softer market conditions, which will likely become exacerbated as we enter the summer months. Predictably, buyers and investors are taking a ‘wait-and-see’ approach, opting not to commit to large financial transactions at a time of weakened regional and global geo-political confidence.”

Qatar's mortgage market presented a mixed picture during the quarter. While the number of mortgage transactions fell by 12.4% year-on-year to 283, the total value of mortgages issued increased by 85% year-on-year to approximately QAR 17.2 billion, suggesting continued financing activity for larger and higher-value residential assets.

The residential leasing market also softened during Q1 2026. Average villa rents declined by 8.9% year-on-year to QAR 13,908 per month, while apartment rental rates fell by 13.3% quarter-on-quarter to QAR 9,492 per month as occupiers adopted a more cautious stance amid heightened uncertainty.

Adam Stewart, Partner – Head of Qatar, said: "The current market environment reflects a period of adjustment, accelerated by the regional conflict, rather than structural weakness. Occupiers and investors have adopted a more measured approach to decision-making, particularly during March when regional events had a direct impact on business confidence, which has remained subdued since.

"Despite softer market conditions, demand remains concentrated in established residential communities, prime office locations and dominant retail destinations. We continue to see commercial occupiers prioritising quality, connectivity and flexibility, reinforcing the flight-to-quality trend across multiple sectors."

OFFICE MARKET

Qatar's office market remained relatively stable, with average office rents declining by 3.2% year-on-year to QAR 77 per square metre per month. Demand continued to be concentrated within prime locations such as West Bay and Lusail, while secondary office locations experienced greater rental pressure due to elevated vacancy levels and increasing competition from newer Grade A developments.

Meanwhile, retail rents declined by 4.6% quarter-on-quarter to an average of QAR 195 per square metre per month as retailers remained focused on operational efficiency and cautious expansion plans.

HOSPITALITY SECTOR

The hospitality sector experienced some of the most direct impacts from the regional conflict during Q1 2026. Hotel occupancy averaged 67.9% during Q1, down from 71.1% during the same period last year, while RevPAR declined by 1.1% year-on-year to QAR 316.7. The disruption was particularly evident in March, when nationwide hotel occupancy fell to 46.9%, compared with 52.4% a year earlier, while ADR declined by 6.1% year-on-year to QAR 345.9 and RevPAR dropped by 16% to QAR 162.2. International visitor arrivals also fell sharply, declining from approximately 351,000 in March 2025 to around 61,000 in March 2026 as regional air travel and tourism flows were disrupted, reports Knight Frank.

The slowdown coincided with a sharp reduction in flight activity at Hamad International Airport, where daily flight movements fell from more than 680 flights per day at the end of February to just 42 flights on 7 March and a single flight on 8 March, before gradually recovering through April and May. Despite these challenges, Qatar Airways had restored around 60% of its pre-conflict flight schedule by the end of May, operating approximately 400 flights per day.

Amar Hussain, Associate Partner – Research, MENA, said: The hospitality sector has been at the forefront of the disruption caused by the regional conflict, with flight restrictions and reduced airline schedules directly impacting visitor arrivals, hotel occupancy and overall tourism activity.

"However, Qatar's long-term outlook remains positive. Significant investment in tourism infrastructure, hospitality assets and destination development continues to support the market's long-term growth ambitions."