Knight Frank: residential sales transactions in Qatar fell %36 over the last12-months
Knight Frank LLP، the estate agency، residential and commercial property consultancy whose headquartered in London، England، announced today that the total number of residential sales transactions in Qatar has fallen by % 36 over the last 12-months and the total value of residential transactions has declined by % 24 as now comes the cooling off period after it experienced an unprecedented construction and property boom Knight Frank together with its American affiliate Cresa is one of the world's largest global property consultancies heading into last year's FIFA World Cup.
Residential property market in Qatar has hit a speed crash
Knight Frank، together with its American affiliate Cresa which is one of the world's largest global property consultancies، stated that residential property market in Qatar has hit a speed crash as growth stalls and triggering concerns that there is too much of new supply that’s built.
Gulf News reported that rents in Qatar have also dropped across popular districts، with Lusail’s Waterfront and Fox Hills experiencing the highest quarterly depreciation of % 23 and % 18 per cent، respectively، in the average quoted rents for apartments، according to Knight Frank.
The sharp decline in rents in Qatar put landlords under pressure
Faisal Durrani، Partner، Head of Research، Middle East and North Africa، at Knight Frank MENA which has served as a beacon of integrated residential and commercial real estate services for the past 14 years، confirmed that the sharp decline in rents will undoubtedly put landlords under pressure to remain competitive.
Faisal Durrani، Partner، Head of Research، Middle East and North Africa، at Knight Frank MENA explained in his 2023 Destination Qatar report that Qatari high net worth individuals most prefer Lusail for a residential acquisition، worth an average budget of $1.8 million.
Cooling off was expected post the FIFA World Cup
Some of the cooling off was expected post the FIFA World Cup late last year، with Qatar recording some of the biggest build up across categories leading up to that event. It meant tens of thousands of new homes getting added، and that’s where some of the problems are being faced، added Faisal Durrani، Partner، Head of Research، Middle East and North Africa، at Knight Frank MENA.
Faisal Durrani، Partner، Head of Research، Middle East and North Africa، at Knight Frank MENA sees that developers in Qatar will be hoping that some of the factors could start turning favourable again، thus stoking growth for home sales or rentals as the economy is on sound footing، with energy prices lending their weight.
He calculated that among the HNWI (high networth individuals)، % 71 already own a home in Lusail،" said Durrani who revealed that Lusail Marina and Lusail Waterfront were identified as the two most favoured locations for residential real estate acquisition.
