DOHA: Qatar’s real estate market witnessed a growing demand for high quality properties during the third quarter of 2013. On the other hand, secondary and low quality space continued to face pressure, as vacancy rates remain high, a GCC Real Estate Review noted.
The office rental market witnessed rise in rentals across most areas, with demand remaining strong for spaces less than 500sqm.
The residential market also performed robustly, with rentals rising 5.10percent year-on-year, while occupancy rates remained around 100 percent. Similarly, residential sales witnessed strong activity, reflected in a rise in number of applications of mortgage valuations, according to the research note released by the Global Investment House (GIH) yesterday.
Demand for office space less than 500 sqm continues to remain strong, while supply of the same remains restricted. Furthermore, demand for high quality properties remained on an uptrend during the quarter.
The residential rental market posted a strong quarter, with rents rising 5-10 percent on YoY basis and occupancy rates remaining around 100 percent.
Demand for one-and two-bedroom apartments were the highest, while that for villas within compounds also remained strong. Quality properties continue to enjoy strong demand, especially in the Pearl Qatar.
With limited new addition in the Pearl Qatar area, rental rates are expected to rise in the next quarter.
In line with the residential rental market, the sales market performed robustly during thrid quarter of this year. Although transaction volumes remained mostly unchanged from 2Q13, the number of applications for mortgage valuations went up.
Sales prices have also increased during the quarter, primarily in the areas of Pearl Qatar and Viva Bahriya.
The monthly office rental rates rose around two percent quarter on quarter. Monthly residential rental rates for one-and two-bedroom apartments has reached the range of QR3,500-QR16,500 and up to QR19,000 for three-bedroom apartments.
The transaction value of residential properties remained stable in third quarter this year. The average apartment sales prices remained within the range of QR11,000-17,500 per sqm.
The report forecast demand for smaller spaces and quality properties continues to remain high, while demand for low quality properties remains dull. Addition of new stock in the coming quarter could put pressure on rental growth.
Under-supply remains the key demand driver, leading to higher rental rates. With limited addition of new stock in the near term, rental rates are likely in the near term, rental rates are likely to rise in the coming quarter.
“Given the expected supply of new stock, 2013 is likely to remain muted; however, some pockets, especially Pearl Qatar, would witness an uptrend due to the limited supply of new stock”
On the latest development in Qatar’ real estate sector, the report noted: “Hill International, a leading construction management company, received the contract to offer construction management services for the new National Museum of Qatar. The four-year contract, awarded by Qatar Petroleum, is worth about QR82.7m.
Capstone Property Services Qatar has been appointed to facilitate the renting, leasing and management of residential units at VB22, Viva Bahriya, at The Pearl Qatar. Ezdan Holding Group completed the first phase of Ezdan City in Wakair area, housing more than 1,3000 housing units for corporate sector.”
In a separate report the GIH noted the GCC construction industry value remains stable at $2.6 trillion. The GCC construction market value continued to float around $2.6 trillion (ongoing projects only).
Saudi Arabia continues to dominate the market, with projects valued at $933bn or 36.0 percent of the total, followed by UAE with projects valued at $818bn or 31.5 percent of the total market, while Qatar has projects worth $356bn or 13.7 percent of the total construction market.
The Peninsula
