Qatar World Cup hosting prompts H1 2022 rental demand surge

Real estate rental market sees demand outstripping supply
Qatar World Cup hosting prompts H1 2022 rental demand surge
Doha skyline

The latest Qatar Real Estate Market Trends Report from Property Finder, MENAT’s prop-tech company, identified a significant surge in rental demand during H1 2022, outstripping supply for the first time; subsequently, investments in apartments reached an all-time high. The report showcases how limited supply has driven price increases across all areas and unit types. Doha recorded an H1 year-on-year (YoY) uplift of 23 percent in average rental unit pricing, while Al Khor witnessed a 38 percent price rise over the same period. This demand shift is a result of Qatar’s imminent hosting of the 2022 FIFA World Cup™.

The survey also stated that the price rises are anticipated to be temporary, with demand expected to decrease slightly in 2023, creating a more stable price index for rental units. Currently, the demand for apartments, particularly short-term and serviced units, continues to rise.

Qatar’s residential stock is estimated at 308,000 units, 700 of which were added during Q1 2022, particularly in The Pearl and Lusail.  Occupancy of residential units is reported at 80 percent, mainly due to demand for leases by the Supreme Committee for Delivery and Legacy for the 2022 FIFA World Cup™ and companies seeking staff accommodation.

According to Property Finder’s report, Qatar’s sales market continues to gain traction, with the Ministry of Justice’s Quarterly Real Estate Bulletin citing 1,251 property sale transactions during Q1 2022, totaling 4,859,712,958 Qatari riyals. The report attributes the sales demand to Qatar’s new foreign property ownership, the attractive investment laws and their inherent advantages, and an increase in the areas foreigners are now allowed to invest in.

Sales listings for Doha during H1 2022 on Property Finder Qatar’s website jumped 14 percent YoY, resulting in a 27 percent increase per square meter in the advertised average price. Concurrently, sales listings for Lusail rose by 7 percent per square meter over the same period.

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