Qatar’s Residential Property Market Analysis 2024

Qatar's residential property prices are falling again, amidst weak demand coupled with an oversupply of available properties.

In April 2024, the real estate price index fell by 6.73% as compared to the same period last year, following annual growth of 0.87% in 2023, 5.09% in 2022, and 2.15% in 2021, according to figures from the Qatar Central Bank (QCB). When adjusted for inflation, the price decline is more severe, at 8.06%.

Qatar's house price annual change
The average price of apartments was QAR10,320 (US$2,831) per square meter (sq. m) in Q1 2024, according to ValuStrat. On the other hand, villa prices averaged QAR 5,544 (US$1,521) per sq. m. over the same period.

During 2023, the total number of residential sales transactions fell by 16.2% from a year earlier, following a huge 25.5% decline in 2022, based on reports released by Cushman & Wakefield. These were in sharp contrast to the strong growth recorded in 2020 and 2021. In early 2024, there are some signs of improvement, with residential sales rising by 30% y-o-y in the first two months of 2024.

However, the oversupply of residential properties in Qatar continues to pull down prices. The availability of properties in the market increased significantly in the past two years as major new residential projects were completed ahead of the 2022 FIBA World Cup held in November 2022. The total number of apartments in Qatar reached 246,000 units in Q1 2024, while the stock of villas increased to 148,000 units. For the whole year of 2024, an additional 9,200 residential units are expected to enter the market.

After experiencing a cumulative house price fall of nearly 26% (-16.4% inflation-adjusted) from 2016 to 2020, the housing market improved dramatically in the past two years, buoyed by the introduction of more liberal foreign property ownership rules and after the Saudis agreed to end their sweeping economic and political blockade against Qatar in January 2021, restoring the air, land, and sea links to the emirate that were severed in June 2017. From 2021 to 2023, house prices increased by 8.3%, but still declined by 5.5% in real terms because of exceptionally high inflation in recent years.

Qatar's housing market is projected to remain weak in the medium term, amidst moderating economic growth. During 2023, Qatar experienced an economic slowdown, registering a real GDP growth rate of just 1.6%, according to the International Monetary Fund (IMF). Prior to that, the economy grew by a robust 4.2% during 2022, a sharp improvement from annual growth of just 1.6% in 2021 and a contraction of 3.6% in 2020, propped up by strong services sector amidst the FIFA World Cup hosting in November to December of last year. The Qatari economy is expected to expand by a modest 2% annually this year and in 2025.