An estimated 5,800 new homes are set to enter the Qatar real estate market by year end, assuming minimum construction delays, according to a report.
These include apartments in five buildings at United Development Company's (UDC) flagship project The Pearl and 10 buildings in Lusail, stated ValuStrat, a leading consulting firm, in its review on Qatar's real estate market for Q1.
By the end of 2016, the total housing stock (villas, residential houses and apartments) was approximately 281,000 units. Another 1,500 units, comprising about 17 per cent villas and 83 per cent apartments, were added to Qatari market during the first quarter this year.
Of these, majority of the new residential projects were concentrated in Lusail, The Pearl and Al Sadd, it stated.
This year’s Cityscape exhibition unveiled major off-plan residential projects such as Al Swida Village in Al Thumama (77 apartment buildings), Lusail Azure (serviced apartments and villas), Telal 2 in Lusail (luxury apartments), Millennium Apartments in The Pearl, Jumanah Tower 2 in The Pearl and Ezdan Oasis in Wukair (8,679 housing units).
All the projects mentioned are expected to be completed by 2020, it stated.
On the residential prices, the ValuStrat report said compared to 2016, the median transacted price for residential houses fell by nearly 12 per cent year-on-year, although the volume of transactions increased by more than 50 per cent.
This annual increase in transactions volume of residential units illustrates a positive response to falling prices, it stated.
On the first quarter scenario, ValuStart said the median transacted price remained unchanged. However, the volume of transactions for residential houses decreased by 20 per cent quarter-on-quarter (QoQ).
The quarterly fall in volume can be partially explained by recent rises in lending rates by Qatar Central Bank total 0.5 per cent in December 2016 and March 2017, it stated.
The real estate consultancy said compared to last year, the median monthly asking rents have declined by approximately 15 per cent YoY and five per cent QoQ.
For villas, the median asking rents plunged by 18 per cent YoY and eight per cent QoQ, while for apartments the asking rents were down 15 per cent YoY and five per cent QoQ.
"Apartment asking rents were relatively stable in some areas like Al Sadd. As many landlords did not reduce rents, but offered incentives and promotions which translated into a fall in effective rents, stated ValuStrat in its report.
"Moreover, in areas like Abu Hamour or Fereej Bin Mahmoud, rents were stable as majority of these districts cater to low-middle income segment," it added