Qatar has seen the delivery of some 1,750 housing units in the third quarter of this year, bringing the total residential supply to 283,250 properties, a new report has shown.
Areas that have seen “most handovers” included Duhail, Fereej Abdul Aziz, Lusail, Muntazah, Al Waab and Fereej Al Soudan which are situated in Doha’s north-west region, said regional consulting firm ValuStrat in its third quarter marker review.
The review showed an industry-wide increase in supply activities in Qatar compared to the previous quarter.
Anum Hasan, ValuStrat Qatar Market Research analyst said, “Transacted prices for a typical residential property declined 11% over the last year and 3% since the previous quarter. Whilst transactional volumes have constantly performed better since early 2017, witnessing a considerable growth of 50% over the same quarter last year. This displays a shift into a buyer’s market, with investors taking advantage of lower priced second-hand properties.”
Citywide residential asking rents declined 11% over the past 12 months and 4% since the second quarter. Houses in Al Sadd, Freej Bin Mahmoud, Lusail, The Pearl, Abu Hamour and Muraikh saw asking rents plunge 12% in a year due to burgeoning supply.
Districts with no substantial new supply, such as Al Waab and West Bay, also witnessed a 10% fall in leasing rates over the third quarter, it said.
Qatar’s total office stock stood at 3.82mn sq m gross leasable area (GLA), with an additional 170,000sq m GLA completed this quarter.
Office asking rents were 11% lower than last year and fell 1.5% since the previous quarter. On the other hand, offices in C/D Ring Roads and West Bay showed stable rents as opposed to Q2, 2017.
ValuStrat Qatar general manager Pawel Banach said, “The overall market has seen increases in supply activity post the quieter summer months. Positive signs of improved transactional volumes for residential properties and offices have helped dampen pressure on falling lease and sales rates, with supply expected to continue to grow at the same level. “Amid geo-political challenges, short-term delivery delays were anticipated. However, buffer stocks of construction materials and support from the public sector helped resolve delays in most construction projects. In the medium-term, demand fundamentals in all sectors will depend on population growth, oil and gas prices, government initiatives and general investor sentiment.”
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