Qatar RE market to see surge in demand

Almost a third (30%) of Qatari high-net-worth individuals (HNWIs) are set to spend in excess of US$1 million on real estate.

According to the inaugural report on Qatar’s real estate sector from property consultant Knight Frank, residential property is the most popular class of real estate, cited by 37% as their primary investment target, followed by office space (33%) and retail property (23%).

The residential market has benefitted from the $229 billion invested in infrastructure in preparation for the 2022 World Cup, an investment that created more than 850,000 jobs in the last ten years, along with a 60% boost in population.  

“Unsurprisingly, demand for residential real estate has grown in tandem,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.

“With rents rising by 20-25% in the last 12 months, it is no surprise that yields have moved out to c. 6.4% for apartments and 4% for villas, making residential real estate an attractive option for the country’s HNWIs.”

As much as 80% of Qatari’s residential sector has focused on luxury developments such as Lusali, but the lack of affordable housing could be concealing true demand and is an untapped opportunity to develop homes at varied price points, which could expand and diversify the buyer demographic and attract more investors, states EY.

The survey canvassed 30 HNWIs in Qatar with a collective wealth in excess of $155 million.

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