The first quarter of 2025 reflected a broadly stable real estate landscape in Qatar, with most sectors experiencing either consolidation or modest downward adjustments. The ValuStrat Price Index (VPI)-Residential Capital Values held firm at 96.5 points, benchmarked against a base of 100 set in Q1 2021. Both apartment and villa indices recorded no significant movement, maintaining levels of 98.7 and 96 points, respectively, on a quarterly and annual basis.
According to the latest ValuStrat Qatar report, the residential sales ticket size rose 3.8 percent to QAR2.7 million, while the sales volume grew 13.2 percent quarter-on-quarter.
Apartment, villa prices remain largely steady
The ValuStrat Price Index – Residential Capital Values, remained stable both quarterly and annually at 96.5 points. Apartment capital values reached QAR10,420 per sq m, remained relatively stable for 12 months. In The Pearl Island, sale rates were QAR10,620 per sq m, measuring no increase quarterly but up 1.6 percent YoY. Meanwhile, values held steady QoQ in Lusail at QAR10,175 per sq m and in West Bay Lagoon at QAR9,600 per sq m.
Villa prices also remained stable both quarterly and annually at QAR5,500 per sq m, with a modest 1.5 percent decline over two years. Values in West Bay Lagoon and Old Airport fell by 5.3 percent and 4 percent YoY, respectively, while Ain Khaled saw a 2.2 percent increase.
Prices across the other 10 locations within the index remained unchanged from the previous quarter. The price-to-rent ratio for both apartments and villas held steady at 19 years. Residential gross yield remained at 5.9 percent, with apartments recording 8.4 percent and villas at 4.6 percent.
Residential stock to grow 7,200 units in 2025
Total residential stock in Qatar’s real estate sector during Q1 2025 was 401,542 units, comprising 253,513 apartments and 148,029 villas. An estimated 2,000 apartments were delivered during the quarter. Key additions included 690 units at Gewan Island (The Pearl), 377 in Shahad Tower (West Bay), and 676 across Lusail Marina’s FJ Residence, Venice Tower and Nayef Tower.
The stock is expected to grow 7,200 units in 2025, signaling strong demand in Qatar’s real estate market.
Qatari Diar, in collaboration with Dar Global, announced a new development under the Simaisma coastal project, featuring Trump-branded villas and an international-standard golf course. Meanwhile, SAK Holding launched the Usool Al Mansoura Compound, comprising two towers with around 500 units ranging from studios to three-bedroom apartments. The project, with a total built-up area of 62,218 sq m, is offered under a leasehold structure.
Furthermore, Tameer Properties acquired seven seafront plots on Qetaifan Island North to develop luxury residences and branded hotel-serviced apartments, with Carlton House announced as the first project.
Rents hold steady
The median monthly rent for a residential unit in Qatar’s real estate sector held steady quarterly but fell 1 percent YoY to QAR8,500. Apartment lease values stabilized at QAR6,000 since the previous quarter, while reflecting a 2 percent annual drop. For one-bedroom apartments, the median monthly lease rate was QAR5,500, for two-bedroom apartments QAR6,250, and for three-bedroom apartments QAR7,500.
In Lusail, rents remained stable QoQ, while rates in Al Mansoura recorded an increase of up to 2 percent. In contrast, Al Sadd experienced a 2 percent decline compared to the previous quarter. The report also revealed that over 18,000 apartment rental contracts were signed in Q1, marking a 15 percent increase both quarterly and yearly.
A slight softening in tenant churn was observed, as new lease agreements accounted for 82 percent of total contracts in Q1 2025 — 13 percent down from the 95 percent recorded in the previous quarter. Al Wukair, Al Mashaf and Al Thumama cumulatively were the top contracted areas with 5,319 leases, measuring an increase of 17.5 percent quarterly.
Mortgage transactions jump 37 percent
In the first quarter of 2025, the Qatar real estate market witnessed 323 mortgage transactions across all asset classes of ready properties, a decrease of 2 percent QoQ but a significant jump of 37 percent since Q1 last year. The total value attributed to mortgage transactions reached QAR9 billion during Q1 2025, reflecting a notable drop of 63 percent quarterly and 45 percent YoY.
“The U.S. Federal Open Market Committee maintained the federal funds rate in the 4.25 percent to 4.5 percent range as of March 2025, aiming to stabilize prices and address employment trends in the USA. Doha recorded 95 deals worth QAR16.4 billion, the highest in value for the quarter, while Al Rayyan saw 96 transactions totalling QAR5.4 billion,” the report added.
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Office rents decline 1.5 percent
Anum Hassan, head of research, ValuStrat Qatar, explained that this quarter marked the launch of the new Office Rental VPI, designed to provide a more granular view of the commercial sector.
“Covering over 90 percent of the national office supply, the index captures performance across seven major clusters, segmented by Grade A and Grade B/C classifications. As of Q1 2025, the office rental index registered 97.4 points, indicating a quarterly decline of 1.5 percent and a 2.6 percent YoY,” added Hassan.
Weighted average rents across the country stood at QAR95 per sq m per month. Grade A offices saw a quarterly reduction of 1.8 percent, averaging QAR116 per sq m, while Grade B/C spaces remained steady at QAR67 per sq m per month.
Tourism also remained a strong contributor to economic activity, with 1.6 million visitors recorded, primarily from the GCC. Hotels achieved an estimated occupancy rate of 71 percent, while both Average Daily Rates (ADR) and Revenue Per Available Room (RevPAR) posted losses of 4 percent and 11.8 percent, respectively, from the previous quarter.
Retail leasing values held steady over the period, while the industrial segment showed encouraging signs of growth. Rents for ambient and cold storage facilities rose by 2.8 percent and 3.6 percent, respectively. Additionally, recent ministerial directives streamlining business set-up processes for foreign investors have resulted in a notable increase in commercial activity.
“In the months ahead, we anticipate further seasonal adjustments, particularly during the summer period, as the market continues to demonstrate resilience while adapting to evolving dynamics,” Hassan concluded.
