Doha, Qatar: Qatar’s gross rental yield across Doha’s prime apartment market including West Bay, Lusail, and The Pearl remains healthy at 6.6% during the final quarter of 2023, stated ‘hapondo’, the country’s Homegrown property portal.

Analysts at the portal note that this indication of a healthy sign in the real estate market makes Qatar an attractive investment destination within the Gulf region.

The report notes that Marina District in Lusail recorded 8 percent in yield for a 1-bedroom apartment and 9.2 percent for a 2-bedroom, respectively. In the meantime, Qatar’s West Bay area stood at 7.6 percent for one-bedroom appartments, while two-bedroom apartments recorded 7.9 percent in yields.

On the other hand, the gross yield at The Pearl for one-bedroom apartments stood at 6.4 percent, while two-bedroom apartments saw 6.1 percent in yields.

However, hapondo states that Pearl Island is the most sought-after location for apartment seekers, followed by West Bay, and Fereej Bin Mahmoud. Fox Hills in Lusail witnessed downward pressure on average apartment rents in the fourth quarter of 2023.

Locations including Al Waab, Al Gharrafa, and Al Markhiya were the most popular locations for villa rental searches on hapondo’s list during Q4 2023. Al Thumama, Al Waab, Al Gharrafa, and Ain Khaled saw lower median rents in Q4, while median rents in Al Mamoura, Al Hilal, and Old Airport have become relatively expensive, the report said.

In terms of apartments for sale, median prices in Doha’s prime market remained stable for the one-bedroom category. There were more affordable options listed in the market for studio apartments in The Pearl and Lusail.

The report said: “Residential property transactions have kept Qatar’s real estate sector busy and buoyant in 2023, with a significant part of the year’s trading volume driven by demand for homes. A year after the FIFA World Cup Qatar 2022, Qatar’s residential real estate sector has proven to be resilient amid speculations of a slowdown that is natural after hosting mega-events.”

Last year, the transaction volume in real estate amounted to QR16.7bn, down from QR21.2bn. Meanwhile, mortgage volume decreased by 31 percent in 2023 to QR45.6bn, according to the Ministry of Justice. The Ministry also reported QR2.75bn worth of residential units sold, 82 percent higher than QR1.51bn in 2022. However, the average deal size per residential unit transaction rose by 26 percent from QR2.1m in 2022 to QR2.64m last year.

The analysis reported by hapondo further revealed that approximately 56 percent of trading volume was done for the intention of villas and houses, while 18 percent for residential units. Case in point. Although vacant land comprised 37 percent of transaction volume in terms of asset type, 82 percent of said land transactions were intended for villas and houses.

© Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).