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Tribune News Network
Doha
Rents for mid-income housing in the country are expected to remain stable throughout 2017 due to gradual rise in demand, as a result of changing demographics, the rise of middle and low-income segments, and stabilisation of oil prices, according to a report by ValuStrat.
"In the longer term, falling prices and stable rents make a good case for tenants to consider home ownership and for some investors to seek out properties with attractive yields," ValuStrat said in its report on Thursday.
According to the report, during 2017, the country is set to witness new construction contracts worth QR46.1 billion and consequently, due to a steady rise in supply, Qatar is most likely to have transformed into a buyers' market and this is reflected by the increasing gap between listed and transaction prices of residential properties in the favour of buyers.
The report said that Doha was the most populous municipality and has the highest number of total sales transactions and prices for residential properties compared to other municipalities.
Currently, three out of four freehold zone properties, Pearl Qatar, Lusail and West Bay Lagoon are in Doha. It also has a majority of leasehold properties where foreigners can lease property for 99 years, the report added.
As per the report, in 2016, 50 percent of the sales transactions recorded in Doha were in residential properties, and majority among them were residential units (villas and bungalows) followed by land plots.
The report said that compared to 2015, there has been a decline in prices per square metre (sqm) of residential units by approximately 10 percent year-on-year, except for Madinat Khalifa South, where the prices of residential units remained stable.
As for the prices of apartments that foreigners can buy, the report said, a luxurious two-bedroom apartment on the first floor in Viva Bahriya, The Pearl, over a 150 sqm area can be bought for QR2.3 million; a three-bedroom apartment on the fifth floor in Aspire tower in West Bay Lagoon over a 275 sqm area for QR3.5 million, while a four-bedroom townhouse in Porto Arabia, The Pearl, over a 474 sqm area of land, with a view of the sea can be purchased for QR9 million.
Regarding the price of villas and plots that foreigners can buy, the report said, a luxurious 6-bedroom villa in Al Waab over an area of 1724 sqm of land can be bought for QR15 million, while a residential land plot over an area of 950 sqm in North Residence area is available for QR3.6 million and a land plot of a residential building, G+5, over an area of 2,200 sqm in Fox Hills can be bought for QR23 million.
The report further said that in 2016, the most popular area in Al Rayyan Municipality, with the most number of sales transactions was Muaither followed by New Al Rayyan, Al Gharafa, Muraikh and Ain Khalid. It said since 2015 in Muaither, there was a steady decline in the average price per sqm, mostly for residential units.
The number of transactions for villas and bungalows remained static in Al Gharafa, although, there was an increase in the average price per sqm by approximately 5 percent year-on-year.
In Al Waab, in 2016, the number of residential units sold remained the same as 2015 and the price per sqm for residential houses declined by approximately 10 percent.
