Qatar: Rents for residential apartments decline in first quarter of 2024
While Doha’s bustling financial district – West Bay remains robust, the iconic Lusail City and The Pearl Island showed a decrease in rental rates, according to a report curated by analysts
Staff Writer, The Peninsula
Doha, Qatar: Average apartments in Qatar witnessed a decline in many areas during the first quarter of the year, stated experts at hapondo, Qatar’s online realty market research platform.
While Doha’s bustling financial district – West Bay remains robust, the iconic Lusail City and The Pearl Island showed a decrease in rental rates, according to a report curated by analysts.
In a statement to the media, Ahmad Al Khanji, Chief Executive Officer of hapondo, commented: “The increase in average asking rent in West Bay apartments reflects the resilience of this business district for the residential market. People continue to be drawn to living in West Bay due to its strategic proximity to offices and Doha’s downtown.”
Analysts mentioned that the average rents across Doha witnessed a downward trend during the first three months of the year, especially in the one-bedroom category.
However, West Bay registered higher asking rents in both one-bedroom and two-bedroom apartments in the first quarter as compared to the same period last year.
On the other hand, the average rents in Lusail and The Pearl in various bedroom categories have either come down or stood sturdy Q-O-Q.
However, the rents of one-bedroom and two-bedroom residential apartments in West Bay increased by 8 percent and 10 percent on average, respectively in Q1 2024 as compared to the first quarter in 2023. Data indicates that the West Bay business district remains the topmost expensive location to rent a one-bedroom and is placed third in the two-bedroom apartments category in Qatar based on median prices of available stock.
Meanwhile, the average apartment rent in Lusail’s Marina District fell by 4 percent in one-bedroom and 14 percent in two-bedroom categories.
The report notes that from a median rent of QR8,600 for a one-bedroom and QAR11,250 for two-bedroom apartments, Marina District’s median asking rent came down to QR7,625 and QR9,000, for one and two-bedroom apartments, respectively.
The average rent, in Lusail’s Fox Hills for one-bedroom apartments, remained relatively stable, while two-bedroom apartments dropped by 4 percent. The researchers note that these price trends have been making Lusail more affordable to lessees and have the potential to attract more tenants in Doha.
One-bedroom apartment rents in The Pearl Qatar, on the other hand, have stood steady since the third quarter of 2023 with a median rent of QR8,500. Howbeit, the two-bedroom average rent decreased by 6 percent, “reflecting pressure to fill out vacancies”.
Other residential areas in Doha including Fereej Bin Mahmoud, Al Sadd, Umm Ghuwailina, and Old Airport saw a double-digit downfall in average prices for the one-bedroom category, while the rent in Najma witnessed a surge by double digits.
The report further adds that asking rents for the two-bedroom apartment category signal firm stances across Qatar’s capital – Doha, while the average asking rents in Al Thumama, Umm Ghuwailina, Al Souq, and Najma inclined.
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