Doha, Qatar: According to several analysts in the country, the residential construction market size is anticipated to amount to $12.39bn (QR45.11bn) in 2024 and will reach $21.32bn by 2029.

The experts at Researchers and Markets noted that the sector is growing at a CAGR of 11.45% in the next five years.

Over several years, the industry saw a fluctuation in the country’s economy. The global pandemic, which erupted in Qatar in 2020, and the downfall of residential property prices as a result of rising supply despite declining demand.

During the first quarter of 2021, 1,700 apartments and villas were constructed, bringing the total number of housing units to almost 304,715 units. On the other hand, the four companies gave 1,650 units from project handovers in Fereej Abdul Aziz, The Pearl, Al Dafna, Mirqab Al Jadeed, and Lusail.

The report also mentions that the average price of a residential property transaction went over $500m (QR1.8bn) while growing at a rate of 3.4 percent QoQ and 6.8 percent YoY. However, the number of housing transactions plunged by 3.3 percent QoQ but saw an increase of 52.8 percent as compared to the same period in 2020.

Researchers state that most of the properties were sold in Umm Garn. Meanwhile, Fereej Al-Amir had the biggest ticket sizes overall and had 68 residential building transactions. Most of the transactions, however, took place in Old Airport and Umm Ghuwailina.

In January and February of 2021, The Pearl and West Bay Lagoon saw annual decreases in transaction volume as the value stood at 6.8 percent and 11.7 percent, respectively. On the other hand, the average price per square meter for apartments in The Pearl was $4,200.

In the same quarter, contracts were given out to build another 450 residential properties in areas such as Fox Hills, Fox Waterfront, and the Marina. For the remaining quarters of the year, Qatar witnessed 6.300 units in the pipeline.

“While the value of residential real estate sold climbed by 28 percent over the prior year in October 2021, the overall number of properties sold increased by 2.8 percent. 13,500 new residential units are anticipated to enter the Qatari market by the end of 2022,” it said.

In Q4 2021, 580 housing units were added as the most recent construction work was seen in locations including The Pearl, apartments and mixed-use structures in Qetifan North, 1,700 villas in Furjan Wadi Lusail, Al Yussum townhouses, 2 in Yasmeen City Lusail, and the Milos apartment complex in Legtafiya.

The report further added: “Due to the completion of new high-rise units, prices increased across a number of locations from H1 2020 to H1 2021, including Lusail City (from USD 3173 per sq m to USD 3400 per sq m) and West Bay (from USD 2900 per sq m to USD 3200 per sq m).”

However, Global and local investors in the market have started to prefer cities such as Lusail as the demand for the residential construction industry grows further.

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