Qatar’s real estate sector continues to demonstrate resilience despite evolving market conditions. While villa and apartment sale prices have declined by 5% year-on-year, prime locations remain in demand, supported by interest in premium developments, according to Knight Frank’s biannual Qatar Real Estate Market Review.
Faisal Durrani, Partner and Head of Research, MENA, stated that Qatar’s housing market has been experiencing a gradual decline in property values, attributed to multiple factors. The large-scale construction projects completed ahead of the FIFA 2022 World Cup led to a substantial increase in housing supply, contributing to downward pressure on property prices and rental rates. However, high-end neighborhoods have maintained steady demand.
Despite the overall softening of property prices, mortgage activity has surged, with Q4 2024 recording 294 transactions valued at QR24.8 billion, representing a 168% year-on-year increase. This rise has been linked to opportunistic refinancing, as buyers have taken advantage of declining interest rates, which fell from 6.25% in January 2024 to 5.1% in December. 
In the villa market, Abu Hamour reported the highest sale prices at QR8,587 per square meter, attributed to its smaller unit sizes and community appeal. Mid-tier villa locations, including Al Thumama (QR7,500 psm) and Al Kheesa (QR7,000 psm), offer competitive pricing, while Al Wakair (QR5,600 psm) and Al Kharaitiyat (QR5,807 psm) provide more affordable options.
Apartment sale prices also declined by 5% year-on-year, averaging QR12,625 per square meter. Luxury waterfront developments remain in high demand, with Qanat Quartier (QR13,977 psm) and The Waterfront (QR14,300 psm) leading the market. Marina District (QR13,600 psm) continues to be a preferred location, while Porto Arabia on The Pearl Island (QR11,834 psm) presents a more cost-effective alternative within the development.
Rental rates for luxury apartments have remained stable due to sustained demand for premium living spaces. However, a two-tier market has emerged, with mid-range and budget-friendly apartments experiencing downward pricing pressure due to increased supply. The oversaturation in affordable locations has intensified competition among landlords, contributing to rental price reductions.
Adam Stewart, Partner and Head of Qatar at Knight Frank, noted that villa rental rates in prime areas are expected to remain stable, while secondary locations may see further adjustments due to softer demand. Luxury apartment rentals in developments such as The Pearl and West Bay are projected to maintain steady occupancy levels, supporting rental stability in these areas.
