Qatar real state and Property rent in 2023
The FIFA World Cup Qatar 2022TM is expected to attract around 1.2 million spectators from across the globe, and with the upcoming tournament
set to begin in the next few months, Qatar is already witnessing a surge in demand for accommodations. However, this has led to a steep rise in
rental prices, making it challenging for visitors to find safe and comfortable lodging. The Qatari property owners have taken advantage of this
short-term elevation, and rental prices are expected to increase by 40% year-on-year.
According to the Cityscape Intelligence Report 2022, the sudden demand for rental spaces could very well be the reason for this cost uprising,
but it is expected to be temporary. The report states that the rental prices will fall by 2023, and landlords are progressively prone to insisting
on 2-year agreements to capitalize on the inflated rental inflation and lessen the effect of decreased demand in 2023.
Real Estate trends in Qatar
The report, “Real estate trends in Qatar: Freehold Zones, work from home solutions, FIFA World Cup to dominate in 2022,” also examines
Qatar’s housing market throughout the following year and what influence the World Cup will have on the property sector.
It mentions the normality of seeing a surge in apartment rents as their availability becomes more scarce ahead of the FIFA World Cup Qatar 2022TM.
Qatar real Estate and Property rent in 2023. Qatar has witnessed a general oversupply in the commercial market, but the rental levels in Lusail
have notably increased
due to the demand for accommodations. “We are seeing
evidence of rental increases in Qatar for the first time since 2015;
however, this increase is likely to be temporary as demand is expected
to subside in 2023,” said an official at Cushman & Wakefield, as quoted
in the report.
The report further states that an exceptional volume of apartments,
hotels, villas, retail malls, and office buildings have been developed
between 2010 and 2022 as a result of the forthcoming tournament.
However, the construction of these newly-built properties is predicted
to halt in the second half of 2022 as Qatar would need to go through development programs and preparations for the event. From there on,
significant dwindling is expected in the commencements of new projects
until the supply is consumed, and rental levels increase.
Real Estate Qatar Recent Report 2023
In its recent report “Qatar Q2 Real Estate Market Review,” Cushman & Wakefield mentioned that the residential real estate sector observed solid growth
in rents during the second quarter of the year, with apartments seeing the most elevated increments. Apartment rent in the Gulf state has
notably accelerated by more than 30% compared to a year ago as well.
The report highlights that the rental prices escalated particularly in April and May, following the 5% to 7% climb in rents observed in the first quarter of 2022. Landlords most probably exploited the price hike due to matches in November and December.
The report suggests potential solutions to tackle this momentary escalation, ranging from the utilization of cruise ships, short-haul shuttle flights, and camps in the desert. However, private landowners and large hotel proprietors have incorporated similar solutions while expanding their rents.
While Qatar is witnessing an imminent rise in rents due to the FIFA World Cup Qatar 2022TM, this increase is likely to be temporary. The rental prices are expected to fall by 2023, and landlords are expected to insist on 2-year agreements to capitalize on the inflated rental inflation and lessen the effect of decreased demand in 2023. The surge in demand for rental spaces could very well be the reason for this cost uprising, but the report suggests that there are potential solutions to tackle this momentary escalation.
Report by TRTseries
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