DOHA: Qatar’s real estate market witnessed strong growth in the fourth quarter of 2013 with land sales accounting for about 75 percent of all property transactions in the last quarter.
The total value of land transactions in the fourth quarter 2013 reached QR6.3bn, up by 10 percent from QR5.7bn in Q3 2013.
The volume of transactions also increased in the final quarter of 2013, with more than 1,500 properties changing hands.
The market for land remains the strongest of all of Qatar’s real estate sector, the region’s leading Property Management Company Asteco said yesterday.
Asteco’s ‘Qatar Focus Q4 2013’ report said residential sales market performed strongly in Q4 2013, with the number of transactions outperforming the previous quarter by 8.8 percent.
However, the overall value of sales decreased by 1.9 percent.
Asteco experienced an increasing number of residential mortgage valuation throughout 2013. However, it tailed off in December.
Residential sales prices saw a marginal quarter-on-quarter increase. High quality villas in areas such as West Bay Lagoon and The Pearl Qatar have seen a number of sales in the last three months, highlighting strong demand for these properties, mainly from Qataris. The office market saw a limited amount of activity in Q4 2013 following significant deals agreed in the previous quarter.
Demand from private sector remains; requirements are usually for accommodation of between 200sqm and 500sqm, and many companies of this size are happy to secure offices in ‘secondary locations’ rather than pay the premium rates in West Bay.
Vacancy levels in secondary locations is high, however, much of this accommodation is below standards required by many tenants.
The availability of good quality residential property increased in fourth quarter, with the release of three new residential towers in The Pearl-Qatar. Enquiry levels, however, have decreased since Q3 2013, although demand remains strong for one-bedroom apartments..
According to Asteco, the increase in available apartment units in The Pear Qatar has seen rental rates stabilise after significant increases were witnessed following a period of undersupply in the previous quarter. Recent renewals have seen rental increases of between 3 percent and 5 percent, largely due to the upward pressure on rents earlier this year. Demand remains strong for good quality properties in well-located compounds, with demand strongest for four and five-bedroom houses. The limited choices available to expatriates, especially close to schools, are resulting in rental increases.
The Peninsula
