Qatar’s Rents Rise in Q3: West Bay & Lusail Lead the Charge

Rental prices in Qatar saw a notable increase in the third quarter of 2024, with key residential areas witnessing significant spikes in average asking rents, according to the latest data from online real estate platform hapondo. The uptick in rental rates reflects heightened demand, particularly in popular neighborhoods such as West Bay, Lusail’s Marina District, and The Pearl.

The rental surge was most pronounced in one-bedroom apartments, with West Bay leading the way. Average asking rents in this area rose by more than 7% to QR9,760 per month, while Lusail’s Marina District saw a 4.5% increase, reaching QR7,980 monthly. The trend extended to two-bedroom apartments, which also experienced substantial quarterly rent hikes in both West Bay and Marina.

Conversely, The Pearl’s rental rates remained relatively stable, with one-bedroom apartments at QR8,490 per month and two-bedrooms at QR11,500. Fox Hills saw steady rents for one-bedroom units at QR5,800, although two-bedroom prices dipped by nearly 3%.

Other neighborhoods, including Al Mansoura, Doha Jadeed, and Najma, faced declines in rental prices, with average rates dropping by around 8%. However, some downtown areas bucked the trend, as one-bedroom rents in Al Sadd and the Old Airport area rose by 6.6% and 3%, respectively.

For villa rentals, medium-sized properties with three to five bedrooms saw a noticeable rise in median rents, particularly in The Pearl, where prices jumped from QR29,930 to QR30,900 per month. Villa rents in popular areas like West Bay, Al Hilal, and Ain Khaled also increased, with monthly rates climbing by QR500 to QR1,000.

Abdullah Al Saleh, CEO of Sakan, hapondo's parent company, highlighted Qatar’s strong rental market, especially within the prime residential sector. “Gross rental yields are ranging between 5% and 8% for prime apartments and 3% to 5% for prime villas,” Al Saleh explained. He noted that The Pearl, West Bay, and West Bay Lagoon remain top choices for tenants seeking quality living spaces.

Market experts attribute the rental surge to rising demand, fueled by Qatar's growing population. The National Planning Council’s latest figures show an increase from 2.8 million in June to 3.05 million in August 2024, with expatriates making up nearly half of the population.

Additionally, Qatar's Real Estate Price Index showed signs of recovery, bouncing back from a two-year low in April. The index climbed from 202.46 points in April to 215.05 points in August, indicating a gradual rebound in property values.

As demand for quality residential spaces continues to grow, Qatar's rental market is set for a dynamic year ahead.

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