Qatar’s real estate market remained broadly stable in Q1 of 2025, supported by steady residential capital values, a rebound in mortgage lending, and continued leasing across commercial segments. That is according to the latest Qatar Real Estate Review from ValuStrat.
Residential Sector Insights
In the first quarter of 2025, the residential real estate market in Qatar saw a notable uptick in activity. Sales transactions increased by 13.2% from the previous quarter, indicating a revitalization in buyer confidence. Alongside this surge in transactions, the value of these transactions rose by 3.8%, painting a positive picture for potential investors.
The average transaction ticket size reached a significant QAR 2.7 million, with high-demand areas like The Pearl and Al Qassar seeing remarkable growth. In fact, sales values in these locations surged by over 50%, a clear sign of their desirability among buyers.
Interestingly, while mortgage transactions for ready properties slightly declined by 2% from the last quarter, they maintained a strong position with a 37% increase year-on-year. Most of these mortgage deals were concentrated in Doha, with 95 transactions amounting to QAR 16.4 billion. This concentration in the capital signals robust market confidence.
In terms of pricing, the median listing for apartments is around QAR 10,420 per square meter, while villas are priced at about QAR 5,500 per square meter. Rental rates have remained stable, with average apartment rents holding steady at QAR 6,000 per month, and villas averaging around QAR 11,000. Notably, leasing activity has been particularly robust in areas like Al Wukair, Al Mashaf, and Al Thumama, with villa demand peaking in Soudan, Aziziya, and Ghanim.
Commercial Office Dynamics
Shifting our focus to the commercial sector, ValuStrat reports a trend of softening rental rates across various locales, especially within key business districts. Grade A office rentals averaged QAR 116 per square meter per month, with the most significant declines occurring in areas like West Bay and Al Sadd. Meanwhile, Grade B/C space saw a marginal decline, averaging QAR 67 per square meter, which reflects a decrease of 1.9% year-on-year.
A contributing factor to this rental pattern is the considerable increase in office supply. An impressive 60,000 square meters of new gross leasable area (GLA) was added in Q1 alone, with notable developments including Marina 31 in Lusail and the Corniche Park Towers in West Bay. This increase pushed the total office supply to a considerable 7.3 million square meters in GLA, further influencing rental dynamics.
Retail Space Stability
In retrospect, the retail sector showcased a commendable level of stability in the first quarter of 2025. New additions like Centro Mall and Outlet Village enriched the retail landscape, bringing the total retail space to 2.5 million square meters. The median rent for malls stood at QAR 182.5 per square meter per month, signaling a steady demand for retail environments.
Conversely, some street retail areas, particularly in Al Sadd and the Old Airport region, experienced a decline of 10% in rental prices. This fluctuation sheds light on the evolving landscape of retail space utilization and the need for landlords to adapt to changing consumer preferences and market conditions.
Expert Insights and Future Trends
According to Anum Hasan, the Head of Research for Qatar at ValuStrat, the findings highlight a relatively stable quarter for the real estate market in Qatar. As we progress further into 2025, seasonal adjustments are anticipated, particularly during the warmer summer months. Despite these forthcoming changes, the market continues to exhibit resilience while adapting to evolving dynamics.
ValuStrat, the leading company behind this comprehensive report, is an international consulting firm recognized for its expertise in the real estate sector. With 16 offices spanning five countries—including Qatar—ValuStrat remains a trusted voice in market analysis and consulting, providing valuable insights for investors and stakeholders alike.
This breakdown of Qatar’s real estate market during Q1 of 2025 illustrates a robust landscape brimming with opportunities across residential, commercial, and retail sectors. Whether you are an investor or a prospective tenant, understanding these nuances can significantly impact your decisions in this vibrant market.
