Qatar's residential realty sector is half way through recovery to reach boom cycle in the coming quarters; even as rents "stabilised" between fourth quarter (Q4) and previous period (Q3) of 2013, an Al Asmakh Real Estate Development Company (Aredc) research has found.
"The overall outlook of the residential real estate market is positive and remains encouraging through the upcoming quarters," Aredc's valuation and research department said in its latest report.
Despite the availability of several units in Doha, the occupancy level in residential leasing is as high as 90%, it said.
Around 79,423 households stay within Doha, which is more than 50% of total households within Qatar, it said, adding that the increase of expats as well as the movement of the Qatari population from the outskirts to the inner-city upsurges demand for new housing.
However, the scenario is seen inverse in other municipalities, it observed.
Finding that limited new housing supply and increasing population within Doha imbalances demand and supply market equilibrium; the research department said at present, very small numbers of residential units are for sale within Doha. The numbers are even smaller in 18 usufruct (temporary right to the use and enjoyment of the property of another) areas where availability of apartments is extremely limited.
The price range of apartments is QR8,000 to QR11,000 per sq m within usufruct areas, this range may be deviated if building specification varies significantly.
The average sale price for ready-to-move-in apartment within The Pearl is QR15,000 per sq m; the price range for a similar unit in Zig Zag tower is in between QR11,000 and QR12,500 per sq m.
As far as outright purchase of an apartment is concern, 1-BR apartment may cost around QR1.6mn in The Pearl, whereas a 2-BR apartment may fetch QR3.5mn, it said, adding the price range for 1-BR apartment within usufruct areas is QR700,000 to QR1mn and for 2-BR is QR900,000 to QR1.3mn.
Due to central location, mixed with commercial district, gross annual yield is nearly 8% in residential buildings of Al Sadd. However, average gross annual yield within residential sector in Qatar is nearly 6.6%.
Observing that between Q3 and Q4 of 2013, rents remained more or less "stable"; it said residential units within Doha municipality witnessed highest leasing demand.
Monthly rents in the areas near C-Ring Road were in the range of QR9,000 to QR12,000 for 2-BR apartment and QR 5,500 to QR7,000 for 1-BR apartment.
The average monthly rent for a 2-BR apartment in West Bay is QR16,000; while 2BR-apartment in The Pearl can be leased on an average monthly rate of QR15,000, 1-BR at QR13,000 and studio at QR10,500.
Al Wa'ab is prominent destination for high-end villa compounds where average monthly rent for a 3/4-BR villa in a compound is about QR18,000. Other areas such as Madinat Khalifa, Gharrafa, and Al Hilal are preferred by budget households; the monthly rent for 3/4-BR villa would be in range of QR13,000 to QR15,000 per month.
© Gulf Times 2014
