DOHA: Rents of residential units in Doha and surrounding areas are likely to remain high in the next couple of years due to increasing population, say experts.
“Real estate market has performed well to date in 2014. We expect the property market to perform strongly in the next two to three years, with more risk/uncertainty thereafter,” Johny Archer, Associate Director, Consulting and Research, DTZ Qatar, told a property seminar organised by DTZ Qatar.
“On the Pearl, there has been an increase in demand for one- bedroom and three-bedroom apartments. Elsewhere, demand remains strongest for affordable apartment accommodation, while the availability of good quality three-four bedroom villas in residential compounds convenient to West Bay and the City Center remains at a premium,” he added.
The population jumped to around two million by December 2013 from around 1.8 million, up 11 percent.
“We have seen annual rent increase of about four to five percent in the past in prime areas such as West Bay. Rent is a function of supply (of residential units) and population increase.
“We think the rates will probably remain around four to five percent in next couple of years and then we expect to see supply coming in the Pearl and Lusail.
“At that point of time supply will catch up with demand and rents will stabilise,” Edward Brookes, Senior Director, DTZ Middle East, told this daily on the sidelines of the seminar.
According to DTZ, in the residential sector, three- and four-bedroom villas are most sought-after, and availability is scarce for good quality accommodation in well-located compounds. On the Pearl, there is strong demand for one- and three-bedroom apartments in particular. Many new residential towers are scheduled to come to the market before the end of the year.
A report by DTZ said that rentals for office accommodation have remained comparatively stable since 2011. In the Diplomatic District, rents can vary significantly based on the quantum and quality of accommodation. It is possible for larger space users seeking over 5,000sqm to secure secondary accommodation at QR160 per sqm a month. Small suites of less than 500sqm are at a premium and rentals in excess of QR300 per sqm per month have been achieved.
On the back of high levels of take-up recorded in the past year and reduced vacancy rates, rents have started to increase for office stock and DTZ forecasts that the trend will continue over 2014, particularly for high quality small suites.
The Peninsula
