Qatar’s construction sector is projected to grow by 2.4% by 2027, according to a recent report from Fitch Solutions. This optimistic forecast is largely attributed to a positive shift in market sentiment, bolstered by improvements in the real estate market, which have significantly enhanced the industry’s outlook.
The report highlights a notable increase in Qatar’s Real Estate Price Index (REPI), which rose by 5.7% year-to-date, reaching its highest level as of October 1, 2026. This uptick in the REPI has contributed to growing confidence among investors and stakeholders, suggesting that the long-standing issue of oversupply in the market is being addressed through supportive legislation and policies implemented in 2025.
Experts at Fitch Solutions noted, “This has largely contributed to growing confidence that the long-standing issue of oversupply has been addressed.” They observed that households are increasingly purchasing higher-value properties, which has led to an increase in median transaction values, even as overall property values have shown a slight decline. This trend is supported by data from the National Planning Council, which indicates a decrease in property values, while ValuStrat’s housing valuation metrics suggest that valuations have remained relatively stable over the past year.
Despite the positive indicators, the report cautions that structural challenges may hinder a more robust recovery in the sector. High income and wealth disparity, reflected in Qatar’s Gini coefficient of 46.2, is expected to continue impacting the market, making it unlikely for the sector to return to the levels seen in 2016.
Fitch Solutions also provided insights into the broader Middle East and North Africa (MENA) construction industry, forecasting a contraction of 4.3% in construction gross value added (GVA) in 2026, followed by a recovery of 4% in 2027. The report emphasizes that the Gulf Cooperation Council (GCC) region is facing a different economic landscape, with tightened financing conditions as institutions adopt a more cautious approach to liquidity management.
Furthermore, the report indicates that lower interest rates and strong performance in global equity markets are driving momentum in the high-end residential market, which is expected to benefit from improved financial conditions and increased wealth creation.
For more detailed insights, refer to Fitch Solutions.
For ongoing updates on real estate developments, visit our Real Estate section.
