Tribune News NetworkDohaQatar is expected to reach a stable pricing index in the coming year, despite the current price and supply fluctuations, according to Property Finder Qatar, the country’s leading property platform.“The slowdown impact of the pandemic continues to significantly affect the market; however, sale transactions and rental deals are rising as investors and property buyers look to take advantage of lower market prices,” says Afaf Hashem, Country Manager, Property Finder Qatar.The platform reports shifts in rental price; which have allowed many to upgrade their accommodation, and others to take advantage of affordable prices for smaller units, such as studios. According to the Ministry of Justice’s Real Estate Bulletin; Q2, 2021 saw 1,244 sales transactions, valued at over QR6bn. The company says the market has some positive indicators with Qatar expecting to have vaccinated up to 70-80% of the population by October, and with the 2022 FIFA World Cup approaching. “There is no shortage of investment and development in the country. The World Bank has forecast that Qatar’s economy will grow by 3% this year – a solid indication of post-pandemic recovery,” added Hashem. Property Finder Qatar says supply continues to increase in the market, with Valustrat reporting that approximately 4,900 units will be handed over in H2, 2021, with the majority of apartment units in Lusail, The Pearl, Al Dafna, Luqta, Umm Ghuwailina and New Doha. Moreover, new projects awarded in the first half of the year in The Pearl, Lusail and Al Khor will add an additional 575 units by 2024. “Regulations being implemented by Qatar’s Ministry of Justice’s Real Estate Division are paving the way to a more transparent and regulated market, encouraging more foreign direct and local investment in an opportunistic market. This, coupled with new areas for non-Qatari ownership, is transitioning the market from tenant-to-buyer focused,” added Property Finder Qatar’s Country Manager. Advertised prices on propertyfinder.qa, which may not necessarily reflect actual transacted prices, unveil the following trends:Rental Apartments A slight decrease in apartment rentals was recorded in the first half of 2021 compared to the same period last year. Prices are yet to fully recover from the effects of the pandemic, when prices were lowered to spur demand and attract new renters. Prices in areas such as Al Nasr and Al Sadd for instance, fell from QR7,000 to QR6,000. The addition of newer stock in areas closer to the city center has also seen landlords and owners shift strategy to offer budget friendly units. The Pearl, which remains one of the country’s most popular areas, saw the advertised median price rise by QR500 in January – June this year compared to the same period last year. The number of www.propertyfinder.qa listings in Ain Khaled has more than doubled in that same period, indicating an influx of new stock, which increased the advertised median price from QR7,000 to QR8,000. Rental VillasVilla rentals remain in very high demand across Qatar, but an influx of new units has decreased prices. Prices in Abu Hamour and Ain Khaled fell by QR1,000 in the first half of this year compared to H1 last year, while prices in Al Thumama fell from QR13,000 to QR11,000 over the same time period. However, median advertised prices in areas such as Al Messila and Al Soudan, which offer modern, luxury units have increased. Landlords and owners are offering ‘grace periods’ and ‘free months’ incentives which could be behind price stagnation in areas such as Al Muntazah, Al Wakair and Al Muraikh. Apartment SalesWith regulations shaping the market, and increased interest in property investment, sales have been on a steady incline since H2, 2020. However, the market has yet to find a steady pricing trend, and advertised prices fluctuated throughout H1, 2021. When comparing H1, 2020 to H1, 2021, prices increased in a number of areas, such as Lusail City (from QR11,556 per sqm to QR12,132 per sqm), and West Bay (from QR10,778 per sqm to QR12,005 per sqm), mostly due to new high-rise units being handed over. Demand continues to increase in Lusail, which is becoming a top pick for apartment investors. Villa SalesAs new areas open up to foreign ownership, sales in these areas have risen, particularly for villas, and prices have yet to stabilize. West Bay Lagoon, with its luxury villas, recorded the most significant price increase between H1, 2020, and H1, 2021 (from QR12,177 per sqm to QR14,375 per sqm). Al Duhail also recorded an advertised price increase over the same time frame, moving from QR7,794 per sqm to QR8,500 per sqm largely due to newer units going on sale. However, villas in Al Waab saw advertised prices fall from QR11,538 per sqm to QR9,825 per sqm.