BNR – Qatar’s strong real estate market has demonstrated durability despite a minor market drop, according to renowned real estate advisory firm ValueStrat.
The country’s real estate market during the first quarter of 2023 is in a period of a modest market correction.
In comparison to the previous quarter, the Value Price Index (VPI) fell by 0.2%.
Market Correction and Stabilisation
A little correction is not a reason for concern, but is typically a good indicator. This helps the market to stabilise and gives additional prospects for long-term growth.
When looking at individual property kinds and localities, the flat category exhibited a 0.8% price deflation. This correction was especially noticeable in high-end areas such as The Pearl and West Bay Lagoon.
The growing Lusail city, on the other hand, defied the trend, with a 0.4% increase in residential prices. The villa market followed the same trend of gradual adjustment, with no noteworthy price fluctuations during the quarter.
Regions such as Al Khor and Al Thumama achieved high gains. These improvements were offset by slight declines in areas such as West Bay Lagoon and Al Dafna. The commercial real estate sector, on the other hand, showed signs of stability, with premier office and retail properties in strong demand.
Commercial Real Estate
Msheireb Downtown and Lusail City, two important business areas, were bustling with lease activity.
This suggests that commercial real estate is in a favourable state of correction, allowing for more equitable pricing and a better investment.
Notably, the Qatari economy’s general health and resilience recorded an 8% year-on-year GDP gain by the fourth quarter of 2022.
Population growth and the government’s QAR 199 billion expenditure plan for 2023 all point to a market that is ready for investment and growth.
These market correction indicators, together with the general health of the Qatari economy, depict a property market that is not just surviving but growing.
